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Ahmedabad, Apr 18 (PTI) Leasing of office space in green-certified buildings rose 20 per cent in 2024 to 492 lakh square feet across six major cities as corporates are focusing more on sustainability, according to a report by CREDAI and Colliers. Realtors' apex body CREDAI and real estate consultant Colliers India on Friday released a report 'Sustainability in Real Estate: Towards a Greener Skyline' here. Leasing of office space in premium green-certified buildings surged annually by 20 per cent in 2024 to 49.
2 million (492 lakh) square feet from 41 million (410 lakh) square feet in the preceding year. Green buildings command higher rental. "India has set ambitious climate targets, including achieving net-zero emissions by 2070 and reducing carbon intensity to less than 45 per cent by 2030.
Real estate, being a significant contributor to carbon emissions, has the potential in advancing these goals through green building practices, usage of energy-efficient technologies, and renewable energy integration," CREDAI National new President Shekhar G Patel said in the report. He took over as President for 2025-27 period on Friday. This shift has already gained momentum in the sector, with green building adoption increasing across residential, commercial, and industrial spaces, he added.
As per the report, corporates have been increasingly opting for office spaces that align with global sustainability standards with respect to energy efficiency, carbon emissions, and employee well-being. This shift is driving growing preference for green-certified workplaces, it added. About 75 per cent of Grade A office space leasing transactions across the top six cities in 2024 took place in green-certified buildings, the report said.
"Construction industry is a major contributor to global carbon emissions, accounting for nearly 40 per cent of greenhouse gas emissions. The real estate sector stands at crossroads of transformation, where sustainability is no longer an option but a necessity," Colliers India CEO Badal Yagnik said. As of 2024, green-certified office stock in India stood at about 503 million square feet, representing 66 per cent of the total Grade A inventory across the top six cities -- Delhi-NCR, Mumbai, Bengaluru, Hyderabad, Chennai and Pune.
Commenting on this trend, Peush Jain, MD-Commercial Leasing and Advisory, Anarock Group, said, "the evolution of workplace strategies continues to influence market dynamics as companies look to enhance collaboration, innovation, and employee well-being." "This transformation is driving demand for premium office spaces with advanced technological infrastructure and sustainable features with increased focus on Environmental, Social, and Governance (ESG) parameters becoming a decisive factor in corporate real estate decisions, spurring interest in green-certified buildings," Jain said. (This story has not been edited by THE WEEK and is auto-generated from PTI).
