Mumbai, August 4, 2025 — India is witnessing a green transformation in its commercial real estate landscape. The latest data from ANAROCK Research reveals a staggering 65% growth in Grade A green-certified office stock across the top 7 cities since 2019. With occupiers increasingly prioritizing sustainability, developers are aligning their offerings with demand for certified green spaces.
Green Certified Stock: A Majority Stake in Grade A Offices
As of H1 2025, approximately 530 million sq. ft. of the 865 million sq. ft. total Grade A office stock in the top 7 cities is green-certified, translating to a dominant 61% share. This is a significant leap from 322 million sq. ft. in 2019.
City-wise Leaders in Green Stock:
- Bengaluru leads with approx. 163 Mn sq. ft., accounting for 73% of its total 223 Mn sq. ft. office stock
- NCR follows with 97 Mn sq. ft. (62% of total office stock)
- Hyderabad has 87 Mn sq. ft. (62%)
- MMR: 67 Mn sq. ft. (47% of 144 Mn sq. ft. stock)
- Chennai, Pune: Moderate shares
- Kolkata lags with just 3% green-certified stock
Leasing Momentum Driven by Sustainability
Out of the total 26.8 Mn sq. ft. of net absorption in H1 2025, over 74% (19.93 Mn sq. ft.) was leased in green-certified buildings — underscoring the occupier shift towards eco-conscious workspaces.
City-wise Green Leasing Share in H1 2025:
- Bengaluru: 80% (5.3 Mn sq. ft. of 6.6 Mn sq. ft.)
- NCR, Pune, Chennai: ~76%
- MMR: 72%
- Hyderabad: 69%
- Kolkata: Just 7%
Green Premium: Higher Rents, Lower Vacancies
Despite higher costs, green buildings are in demand:
- Green-certified offices command up to 24% higher rentals.
- Average monthly rent in MMR:
- Green: INR 177/sq. ft.
- Non-green: INR 143/sq. ft.
- Chennai sees a 16% premium; Kolkata has the smallest gap at 4%.
Vacancy Comparison:
- PAN India Vacancy:
- Green: 14%
- Non-Green: 16.30%
- MMR Green Vacancy: 8% vs 15.1% (non-green)
- Chennai Exception: Green-certified buildings have higher vacancy (13%) than non-green (9.10%)
Sustainability Push: From Policy to Practice
Anuj Puri, Chairman, ANAROCK Group, emphasized that the surge in green offices is not just developer-driven but also policy-backed and demand-led. Multinational companies, Global Capability Centers (GCCs), and large corporates are mandating sustainability in leasing decisions.
“Green office buildings are India’s sustainability vanguard,” Puri noted. “The demand for eco-friendly commercial spaces far outpaces that for green residential housing.”
He added that India’s commitment to net-zero emissions by 2070 and a 500 GW renewable energy capacity by 2030 makes the green commercial segment a strategic imperative.
Global Competitiveness Through Green Real Estate
With international tenants prioritizing green-certified workspaces, India’s rapid adoption of sustainable office stock enhances its global competitiveness. The shift positions India as a hub for responsible business, aligning climate action with economic growth.
