India’s real estate market has shown a breathtaking rise in the demand for certified green offices reflecting occupied companies’ intent on achieving higher sustainability goals to match with those set by the country.
According to the latest update, the uptake of green office spaces in the six targeted cities, including Bangalore, Chennai, Delhi-NCR, Hyderabad, Mumbai, and Pune, stood at 13 million sq ft in the second quarter of 2024. This has risen by 24% year on year and has taken a mouth-watering 82% market share of the leasing activities in the given period.
More than half of the leases were signed within green-certified buildings, with Bengaluru and Mumbai dominating this market; around 60% of the 13 mn sq ft of the leases were in buildings developed not more than 15 years ago, illustrating the demand for sustainable offices.
Arpit Mehrotra, Managing Director of Office Services at Colliers India, has explained this state of affairs with reference to the geographical region’s occupiers’ environmentally-responsive attitude. ‘It also represents occupiers’ clear desire to have their sustainability policies correspond to the overall sustainability objectives of the country,’ he added.
The report also revealed that the technology, engineering, manufacturing, and Business, Finance, and insurance (BFSI) industries have led on this kind of occupancy, with 70-80% of their space uptake since 2023 in green-certified buildings. In addition, 62% of the flex players also prefer leasing the spaces in such buildings.
In the Asia Pacific region, the need for green-certified buildings has been on the rise, and so too has the construction of these spaces – the new supply of green-certified buildings was nearly 70% in the second quarter. Industry observers expect that more than 150 million square meters of Grade A office developments in six first-tier cities will be green-certified in the next two to three years, greatly increasing China’s green office inventory to more than 6 billion square meters.
