India’s office leasing is increasingly dominated by green-certified buildings, driven by rising corporate sustainability commitments and mandatory reporting norms, with Bengaluru leading the charge in eco-friendly workspace adoption
The demand for green-certified office spaces in India has surged, with 82 percent of all office leasing in the April-June 2024 quarter taking place in environmentally responsible and resource-efficient buildings. According to data shared by real estate consultancy Colliers, 12.9 million square feet (msf) of office space was leased in green-certified buildings across India’s top six cities during this period, marking a 24 percent increase from the same quarter in 2023.
This trend reflects a broader shift towards sustainability, partly driven by the Securities and Exchange Board of India’s (SEBI) mandatory Business Responsibility and Sustainability Reporting framework, which requires the top 1,000 listed companies to disclose their Environmental, Social, and Governance (ESG) practices. The emphasis on green certifications, such as Leadership in Energy and Environmental Design (LEED) and Green Rating for Integrated Habitat Assessment (GRIHA), has gained traction as more occupiers prioritise lower operational costs, improved indoor air quality, and enhanced employee productivity.
Bengaluru, the nation’s technology hub, has emerged as the leader in green-certified office leasing, accounting for 16.5 msf of the total space since January 2023. It is followed by Delhi NCR with 11.8 msf and Chennai with 11.2 msf. The technology sector has been the most significant driver of this demand, occupying 27 per cent of the leased space in green buildings, followed by the Engineering & Manufacturing and BFSI sectors, each with a 19 per cent share.
Colliers’ data also indicates that the supply of green-certified office buildings is on the rise, with about 67 per cent of India’s Grade A office spaces now certified as green. Looking ahead, the consultancy predicts that over 150 msf of Grade A office developments, currently under construction, will likely achieve green certification within the next two to three years, pushing the total green-certified stock in India to over 600 msf.
Vimal Nadar, Senior Director and Head of Research at Colliers India, noted that developers are increasingly retrofitting older commercial buildings to incorporate sustainable design elements. An estimated 300-350 msf of commercial stock older than 10 years holds potential for refurbishment, further adding to the country’s green-certified office space inventory.
This growing commitment to sustainability not only reflects global trends but also positions India’s real estate sector as a key player in the transition toward greener, more responsible urban development.