Environmentally friendly office spaces are increasingly popular, with Bengaluru and Mumbai leading the trend and capturing nearly 75% of the market share. In the second quarter of 2024, these cities saw the highest leasing of green-certified buildings, accounting for over 50% of the market. The top 6 cities collectively leased 13 million square feet of green-certified office space, marking a 24% YoY increase and contributing to 82% of total leasing activity. Technology, engineering, and manufacturing firms are particularly focused on green-certified spaces. Colliers India from Mr. Arpit Mehrotra highlighted that 70-80% of space uptake by sectors like engineering, manufacturing, technology, and BFSI has been in green-certified buildings since 2023. LEED, GRIHA, and WELL are prominent certifications ensuring energy efficiency and sustainable design.
As of June 2024, approximately 67% of Grade A office buildings in the top 6 cities are green-certified. Bengaluru and Delhi NCR comprise half of this stock. Nearly 70% of the 13.2 million square feet of new Grade A office space completed in the second quarter of 2024 was green-certified. Over the next 2-3 years, a significant portion of the 150 million square feet of Grade A office developments in progress are expected to receive green certification, potentially increasing Grade A green stock to over 600 million square feet. Colliers Mr. Vimal Nadar India noted that the rising demand for green spaces drives developers to expand sustainable offerings, retrofit older buildings, and integrate green elements into new constructions. Around 300-350 million square feet of commercial buildings older than 10 years are anticipated to be refurbished, further enhancing the green-certified office inventory.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.