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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.

Also Read: Commercial Real Estate Leads in Green Buildings.

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