Supported by the Brihanmumbai Municipal Corporation (BMC) as Green Supporter, the initiative also partners with Meet in India, Incredible India, IGBC, CEE, IIA, BNHS–India, CDOS, and CREDAI–MCHI. The congress is expected to be India’s largest international event on landscape architecture, bringing together thought leaders from urban planning, ecology, design, and policy.

Industry innovators such as Freeform, Vyara, Wipro, K-Lite, SMARK, Fluidra by Astral, Simpolo, and KSR Brothers will also participate, showcasing the latest sustainable materials and design technologies.

“A platform for global dialogue”

Speaking at the announcement, Urmila Rajadhyaksha, President of ISOLA, said the congress aims to position landscape architecture as a key force in shaping the cities of tomorrow.

“Landscape architects have the power to influence how our cities evolve — balancing ecology with urban growth. Through this congress, ISOLA hopes to inspire collective action for a sustainable future,” she said.

Devyani Upasani Deshmukh, Convenor of IFLA–APR 2025, highlighted the event’s inclusive vision:

“The theme ‘Growth Paradox’ challenges us to rethink what kind of growth we are pursuing. Instead of constantly seeking what’s new, we must value and regenerate what already exists,” she said.

Urban collaboration and innovation

Jeetendra Pardeshi, Superintendent of Gardens and Tree Officer, BMC, underlined Mumbai’s unique challenges and innovations:

“Mumbai’s density leaves little room for open spaces, but it pushes us to innovate — through vertical gardens, podium greens, and terrace landscapes. Landscape architects are vital to improving the city’s environmental health,” he said.

Keval Valambhia, COO of CREDAI–MCHI, emphasized the need for intentional development:

“Growth is natural, but development must be conscious and humane. Landscape architecture connects the built environment with emotion and nature,” he said.

Mala Singh, Chairperson, IGBC, noted that landscape architecture is fundamental to truly green buildings, while Darshana Dubhashi, VP of IIA–Mumbai Chapter, called for collective and collaborative growth toward sustainable futures.

40+ speakers, exhibitions, and cultural showcase

The two-day congress will host 40+ eminent speakers from India and abroad, offering keynote sessions, debates, panel discussions, and exhibitions. A student-led Global Landscape Studio and a Manifesto Declaration will further promote awareness of sustainable growth among future generations.

The opening day will feature a traditional puppet show celebrating India’s cultural heritage, followed by the IFLA Awards Gala Nite, honoring excellence in landscape architecture across the Asia–Pacific region.

Also Read: Asia’s largest green real estate event to showcase over 1,000 sustainable technologies

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Marking the 25th anniversary of India’s green building movement, this year’s edition will bring together developers, architects, investors, and policymakers to shape India’s Net Zero and sustainable urban future.

Green Is the New Growth: Real Estate’s Climate Moment

Themed “Green Shifts for Greener Tomorrows: Do Good, Feel Good – Embrace Green Choices for a Sustainable Future,” the event aims to redefine how India builds its homes, offices, and cities.

With real estate contributing nearly 40% of global carbon emissions, the sector’s transformation toward Net Zero buildings and low-carbon construction is no longer optional — it’s essential.

IGBC’s Green Building Congress 2025 will feature:

• Over 1,000 sustainable products and technologies from India and abroad.
• A three-day international conference spotlighting green innovations in construction, design, and materials.
• Live demos and case studies on how green building principles can improve ROI and long-term asset value for developers.

Carbon-Neutral Event, Real Impact

Setting a benchmark for the industry it represents, the Green Building Congress 2025 will itself be a carbon-neutral event. From waste reduction to energy-efficient setups, every aspect of the conference will reflect IGBC’s vision of sustainable action.

This aligns with India’s growing momentum — the country today boasts over 14 billion sq. ft. of registered green footprint, making it one of the world’s largest markets for green real estate.

From Concrete to Conscious Construction

Speaking at the event launch, B. Thiagarajan, National Chairman of IGBC and MD of Blue Star Ltd, said:

“Sustainability is not just about technology; it’s about people making responsible choices every day. As India urbanizes rapidly, we must build cities that are resilient, healthy, and future-ready.”

C. Shekar Reddy, National Vice-Chairman of IGBC, highlighted that from a single green building in 2001 to 14 billion sq. ft. today, India’s journey has been extraordinary:

“This is the time to be bold — in our designs, our collaborations, and our innovations. When we ‘Do Good and Feel Good,’ we don’t just build structures; we build a sustainable nation.”

Mumbai and Maharashtra: Leading the Green Charge

Dr. Mala Singh, Chairperson of IGBC’s Mumbai Chapter, emphasized how Mumbai has become the epicenter of India’s green transformation:

“Maharashtra leads the nation with one of the highest numbers of IGBC-rated projects. Our collaboration with the state government and industry is driving resilient, people-centric infrastructure.”

The Congress will showcase Mumbai’s leadership in sustainable architecture, water-efficient buildings, green-certified homes, and commercial spaces designed to lower operating costs and enhance livability.

Why Real Estate Professionals Should Attend

The Green Building Congress 2025 isn’t just a conference — it’s a marketplace of the future. For developers, contractors, architects, engineers, and investors, it offers:

• Direct access to 1,000+ green building solutions and certified technologies.
• Networking with policymakers and global sustainability leaders.
• B2B platforms to explore joint ventures and new material partnerships.
• Workshops on AI, IoT, ESG financing, Net Zero homes, and carbon-neutral design.
• Recognition programs like the IGBC Leadership Awards and Green Design Competitions.

Green Is the Future of Real Estate

With India targeting Net Zero emissions by 2070 and states like Maharashtra mandating green certifications for new projects, sustainable construction is fast becoming a profitability driver, not just a compliance factor.

IGBC’s Green Building Congress 2025 will play a crucial role in connecting ideas with implementation, ensuring that India’s real estate growth story remains both economically strong and environmentally responsible.

Also Read: Green Building List: Maharashtra On Top.

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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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Key Objectives of the Policy

Highlights Announced by Deputy CM Eknath Shinde

1. Inclusive & Affordable Housing for All

The policy covers:

• Economically Weaker Sections (EWS)
• Low-Income and Middle-Income Groups
• Senior citizens, women, students, industrial workers, journalists, disabled persons, and ex-servicemen

2. AI-Based State Housing Information Portal

A centralized platform using Artificial Intelligence to:

• Track housing supply and demand
• Geo-tag housing units
• Integrate data from MahaRERA, PM Gati Shakti, Mahabhulekh
• Ensure transparency and informed decision-making

3. Land Bank Development by 2026

• A state-wide land bank will be developed with the help of:
  • Revenue Department
  • Forest Department
  • MSRDC
  • MIDC
  • Water Resources Department

4. Walk-to-Work Housing Model

• Promote residential developments near employment zones
• Especially in MIDC areas where 10–30% of the land will be reserved for housing

5. Mandatory Inclusion in All Metropolitan Regions

• Not just cities with 10 lakh+ population, but all Metropolitan Region Development Authorities will be required to develop inclusive housing projects

Support for Self-Redevelopment

Slum Rehabilitation: Transparent & Tech-Driven

• Use of central government land for SRA (Slum Rehabilitation Authority) projects
• Joint planning with Central Govt. departments
• Real-time monitoring of projects using IT systems
• Improved transparency and accountability for all stakeholders

Cluster Development to Replace Failed SRA Projects

• Cluster redevelopment approach for areas with stagnant or delayed SRA projects
• New, capable developers to be selected through transparent bidding
• Strict timelines and accountability to eliminate irregularities

Environmentally Sustainable Housing

• Emphasis on green buildings and climate-adaptive designs
• Promotion of Global Housing Technology Challenge for:
  • Heat-resistance
  • Earthquake-resilience
  • Flood protection

Support from CSR & Knowledge Partners

Summary

With this comprehensive housing policy, the Maharashtra government aims not only to fulfill the dream of homeownership for lakhs of citizens, but also to catalyze economic growth, modernize urban living, and lead India toward a more inclusive real estate future.

Stay updated on housing news at www.SquareFeatIndia.com

Also Read: Seeking A Housing Loan? Read This New RBI Policy

The post Maharashtra’s Revolutionary Housing Policy 2025 Approved: 35 Lakh Homes, AI Portal, Focus on Slum Redevelopment appeared first on Square Feat India.

India’s real estate industry is witnessing a transformative shift, with sustainability no longer an option but a strategic imperative. According to a joint report by Colliers India and CREDAI titled “Sustainability in Real Estate: Towards a Greener Skyline”, the country is embracing green buildings across asset classes at an unprecedented pace.

“This is a pivotal moment for India’s real estate. With over 13 billion sq ft of certified green buildings, the sector is clearly moving towards a low-carbon future.”
— Shekhar G Patel, President, CREDAI

Key Highlights from the Report

• 66% of Grade A office stock in India is green-certified (503 million sq ft as of 2024).
• Green-certified buildings command up to 25% higher rents and 80–90% occupancy rates.
• Leasing in green-certified buildings surged by 20% annually, accounting for 74% of all leasing in 2024.
• Green stock is projected to cross 700 million sq ft in the next 2–3 years.
• Investment opportunity of over INR 425 billion identified for retrofitting old office buildings.

City-Wise Performance: Green Leasing & Penetration (2024)

Why the Rush to Go Green?

Sustainability is increasingly driving occupier preference, developer strategy, and investor sentiment:

• Higher rental yields: Mumbai leads with 24% rental premium in green-certified offices.
• Energy efficiency & cost savings: Lower operational costs and improved air quality.
• Compliance with ESG mandates: A growing expectation, especially from MNC occupiers and REIT investors.

“Green buildings have moved from being a differentiator to a baseline expectation.”
— Badal Yagnik, CEO, Colliers India

Retrofitting: A Billion-Dollar Opportunity

Colliers estimates that:

• Over 355–385 mn sq ft of older office stock (>10 years) can be retrofitted for sustainability.
• This represents an investment potential of INR 425 billion.
• An additional 80–110 mn sq ft of relatively newer buildings also holds upgrade potential with minimal capex.

Sustainability Spreads Across Asset Classes

While the focus is currently on offices, green adoption is rapidly spreading to:

• Data Centers: Among the most energy-intensive, now pivoting to renewable energy.
• Retail & Hospitality: Embracing sustainable materials and energy systems.
• Healthcare: Integrating green architecture for healthier indoor environments.

Looking Ahead: Policy, Regulation & Momentum

For India to scale green real estate:

• Faster environmental clearances are needed.
• Tax incentives for renewable energy should be expanded.
• Stricter ESG compliance and awareness campaigns must be introduced.

Did You Know?
India’s green-certified building footprint has nearly doubled in just 5 years, reaching 13 billion sq ft in 2024.

Conclusion

India is at a critical juncture in its urban transformation journey. As developers, occupiers, and investors increasingly align with sustainable goals, green-certified buildings are no longer an exception—they are the future. The coming years will likely define how real estate drives not just economic value, but environmental responsibility.

Also Read: Green Building Certifications on the Rise: India Embraces Sustainable Construction

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There are moments when the world undergoes change—sometimes imperceptibly, sometimes with the force of an undeniable reckoning. Real estate is currently experiencing such a transformation. Once considered the unchallenged domain of brick-and-mortar, unchecked expansion driven by a growing population has placed the sector in a precarious position. In 2025, the landscape is shifting.

Sustainable real estate has moved beyond being just a trend—it is now an imperative. Investors recognize it as a way to future-proof their portfolios, developers see it as the next frontier, and homebuyers, particularly those shaped by the climate anxieties of the 21st century, demand it. The goal has been to construct buildings that minimize harm to the environment. However, execution has been far from simple.

India currently stands at the crossroads of rapid urbanization. As a result, it must reimagine its built environment. Under the third-term leadership of Prime Minister Narendra Modi, the country is striving to foster a sense of environmental responsibility. The government has placed sustainability at the core of its urban planning discourse, with the goal of achieving net-zero carbon emissions by 2047. The only way to accomplish this is through policy regulation and a recalibration of what real estate development should look like in the coming decades.

The Anatomy of a Sustainable Building

Understanding the anatomy of a sustainable building is crucial. Several key components contribute to making a structure truly sustainable:

• Energy Efficiency: Integration of solar panels, energy-efficient appliances, and designs that reduce dependency on non-renewable power sources.
• Water Management: Systems that do not simply consume but conserve—such as rainwater harvesting, greywater recycling, and low-flow fixtures.
• Sustainable Materials: Use of bamboo, recycled steel, and non-toxic paints—materials that acknowledge the environmental cost of extraction and production.
• Smart Technology: Buildings that respond to their occupants by adjusting lighting, heating, and cooling through intelligent automation.
• Green Spaces: Essential pockets of nature woven into concrete sprawls, filtering air, reducing heat, and creating microclimates.

These elements are not just talking points; they are the metrics by which buildings will be assessed—both by regulators and residents.

Policy as the Catalyst

Sustainability is not a spontaneous evolution—it requires intervention. The Indian government has recognized this and responded with initiatives that push the sector toward compliance with a global green agenda. The Energy Conservation Building Code (ECBC) and the Green Rating for Integrated Habitat Assessment (GRIHA) have set benchmarks. The ECBC establishes minimum energy efficiency standards, while GRIHA provides a framework for assessing the environmental impact of buildings.

Economic incentives are even more compelling. Subsidies, tax credits, and grants encourage builders and property owners to adopt green practices. The Pradhan Mantri Awas Yojana (PMAY) Urban initiative has incorporated energy-saving designs into affordable housing developments, ensuring that sustainability is not just a privilege of the few.

However, real progress comes from research and development. Government-backed initiatives are fueling advancements in green construction materials and renewable energy solutions. Progress is not just about mandates—it is about making sustainable choices practical, accessible, and inevitable.

Shaping a Sustainable Tomorrow

This is the moment when the shape of the future begins to crystallize. Where once the only concern was cost per square foot, now the conversation includes carbon footprints, resource conservation, and resilience. Sustainable real estate is not about aesthetics or regulatory compliance—it is about creating structures that justify their existence, not just to investors but to the planet they inhabit.

Also Read: RBI withdraws accommodative policy ends, easy liquidity policy

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Sustainable Development Takes Center Stage
Sustainability has become a central theme in India’s real estate sector in 2024. Green building certifications, such as LEED (Leadership in Energy and Environmental Design), are gaining traction as buyers and developers alike prioritize eco-friendly and energy-efficient buildings. Sustainable development is no longer a trend, but a key factor influencing property values, making green buildings more desirable and competitive in the market.

The Rise of Smart Homes and Tech-Integrated Living
Technology-driven homes are on the rise, with an increasing demand for smart homes. Advanced automation systems, including IoT devices that enhance security, energy management, and convenience, are becoming standard features in new residential properties. This shift toward tech-integrated living is responding to the growing consumer desire for enhanced comfort, efficiency, and security in their living spaces.

Affordable Housing Initiatives Gain Momentum
Affordable housing has continued to be a focal point in India’s real estate market. With government policies promoting homeownership for the middle class and first-time buyers, affordable housing options have seen a surge. Lower interest home loans and subsidies are making home ownership more accessible, allowing budget-conscious buyers to enter the market with greater ease.

Evolution of Luxury Real Estate in Metro Cities
The luxury real estate market has undergone significant changes, especially in response to the COVID-19 pandemic. There is now a greater emphasis on spacious layouts, private outdoor areas, and wellness amenities that cater to health and well-being. These changes reflect a shift in buyer preferences, with a focus on comfort and a healthier lifestyle.

Rise of Mixed-Use Developments
Mixed-use developments have gained popularity as urban planning evolves. These developments, which combine residential, commercial, and recreational spaces, are becoming more common in major cities. Offering residents the convenience of having everything they need within walking distance, mixed-use projects reflect the global trend toward creating live-work-play environments.

2024 Market Insights
2024 has been a landmark year for India’s residential market. Sales have surged by 17% compared to the previous year, translating to approximately 85% of the total units sold in 2023. The momentum in the market has been remarkable, with sales in 2024 doubling compared to 2023. This growth signals continued strong demand for residential properties, driven by both affordability and evolving consumer needs.

Outlook for 2025 and Beyond
Looking ahead, India’s housing market is set for a significant transformation by 2025. Rapid urbanization, technological innovations, and changing consumer preferences will drive the sector forward. The housing market is expected to contribute 13% to India’s GDP by 2025, reflecting its resilience and growing importance in the economy.

The residential sector is projected to become a $1-trillion market by 2030, with major growth driven by policy reforms and demographic shifts. Tier II and III cities, such as Jaipur, Indore, and Kochi, are emerging as key growth hubs, with these smaller urban centers expected to account for over 40% of new housing developments by 2025.

Furthermore, the urban homeownership rate is forecasted to rise to 72% by 2025, up from 65% in 2020. This growth is being fueled by affordable financing options and the increasing presence of younger homebuyers, particularly Millennials and Gen Z, who are expected to make up 60% of new homebuyers by 2030.

Sustainability will also continue to play a pivotal role in the residential market. Green-certified buildings, once considered a luxury, are expected to represent 30% of all new residential projects by 2025, doubling from 15% in 2020.

As we move into 2025, the residential market in India is poised for continued growth and transformation, with a strong focus on sustainability, technological innovation, and affordability.

Also Read: Dharavi Redevelopment: 10 Years of No Maintenance

The post Key Trends Shaping India’s Residential Market in 2024: Insights by Ritesh Mehta, JLL India appeared first on Square Feat India.

During Q2 2024, about 13 million sq. ft of office space in the top six cities of India has been leased in green-certified buildings. This represents a 24% year-on-year increase and accounts for an impressive 82% share of overall leasing during the quarter. At Century Real Estate Holdings, we are cognizant that this rapid growth indicates the rising awareness among corporate occupiers regarding the role that built structures play in addressing climate change by reducing carbon footprints. In response to this need, we have embraced a vision where environmental stewardship drives every aspect of our projects.

Energy Efficiency: An Essential for Sustainability
Incorporating energy-efficient designs has become the cornerstone of our developments. From the use of high-performance materials to designing buildings that maximize natural light and ventilation, we are committed to reducing operational costs for our tenants and lowering the carbon footprint of our projects. Our selection of energy-efficient lighting design has enabled us to achieve a lighting power density of 0.5 watts per sq. ft and a 51% energy saving due to lighting at our commercial developments. Certifications like LEED and IGBC are not just aspirational goals but standards that guide our design and construction processes.

Water Conservation and Waste Reduction
Water is one of the most precious resources, particularly in urban environments like Bengaluru, where we face periodic water scarcity. Our projects address this by ensuring efficient water use through low-flow fixtures and dual-flush systems. The implementation of 100% recycled water for HVAC, flushing, and gardening demonstrates our company’s commitment to responsible water use across our commercial and residential portfolios, significantly reducing water usage. Similarly, we’ve taken steps to manage construction waste better and adopt circular economy principles that prioritize reuse and recycling over disposal.

Green Spaces for Wellness
Our projects are not just about buildings; they’re about creating spaces where people can thrive. That means integrating green spaces that not only enhance the aesthetic value of a project but also fulfill the human need for nature-connectedness. Studies show that enabling employees access to green spaces offers them fatigue relief and attention restoration, thereby improving cognitive performance, concentration, and productivity. We believe that this trend of “greening spaces” will become the norm in the future, and we are working towards it, with 1.9 million sq. ft of our portfolio being green certified.

Sustainable Materials and Renewable Energy
We have made significant strides in adopting sustainable materials that are not only eco-friendly but also offer long-term durability. Local sourcing of materials further reduces the environmental impact associated with transportation. Additionally, renewable energy sources like solar and wind power are being integrated into both commercial and residential developments, moving us closer to our long-term goal of carbon neutrality.

As we move forward, our commitment to environmental sustainability remains unwavering. By continuing to innovate and push the boundaries of sustainable real estate development, we believe we can build a future where urban growth and environmental protection go hand in hand.

About the Author:
Mr. Mahesh Prabhu is the Chief Executive Officer of Century Real Estate Holdings, a leading real estate developer in India, known for its forward-thinking approach to both commercial and residential developments.

Also Read: CII IGBC and CREDAI Sign MoU to Promote Green Building Practices in India

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Increased Demand from Engineering, Manufacturing, and BFSI Sectors

The report forecasts that between 2025 and 2027, engineering and manufacturing, along with banking, financial services, and insurance (BFSI) sectors, will each lease approximately 11-12 million square feet of office space annually. This demand will collectively represent about 40% of the total office space market. This marks a notable increase from the previous three years, where these sectors accounted for 8-9 million square feet each.

Shift in Demand Patterns: GCCs as Knowledge and Innovation Hubs

GCCs are anticipated to drive around 40% of annual Grade A office space demand as they evolve into hubs for knowledge and innovation. This shift reflects a broader trend where traditional tech-dominated demand diversifies to include a wider range of occupiers, including those from engineering, manufacturing, healthcare, consulting, and flex spaces.

Leasing Trends Across Key Sectors

The report provides insights into leasing trends:

• Technology: Technology firms are expected to stabilize their space uptake at around 15 million square feet annually, a slight decrease from previous years.
• Engineering & Manufacturing: This sector’s demand is projected to rise to 12 million square feet annually.
• BFSI: The BFSI sector will see a growth in demand, reaching 11.5 million square feet per year.
• Flex Spaces: These are expected to account for 15-20% of total office leasing, with expansion into new geographies.

Regional Demand Insights

Bengaluru continues to lead in office space demand across most sectors, with anticipated annual leasing activity approaching 20 million square feet. However, cities like Hyderabad, Chennai, and Pune are gaining momentum. Hyderabad’s SBD and Chennai’s OMR Zone 1 are particularly noted for their increased traction among technology and BFSI firms.

Changes in Leasing Dynamics Post-Pandemic

The average transaction size has decreased to around 43,000 square feet in 2023, down 11% from 2019. Conversely, the number of deals has increased by 44%, reflecting a shift towards smaller, mid-sized office spaces as companies adopt distributed work models. The volume of flex space and engineering & manufacturing deals has surged by over 70% post-pandemic.

Emergence of Smaller Cities

While the top six cities (Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai, and Pune) remain central to office space demand, smaller cities such as Bhubaneswar, Chandigarh, and Coimbatore are emerging as high-potential growth centers.

Preference for Green-Certified Buildings

Sustainability is a major focus, with approximately 75% of office space take-up in 2024 expected to be in green-certified buildings. Engineering, BFSI, and technology sectors are leading this trend, aligning with broader ESG goals.

Conclusion

Colliers’ report underscores the evolving dynamics of the Indian office market, characterized by a shift towards occupier-driven demand and a heightened focus on sustainability. The findings indicate robust growth potential across various sectors and geographies, offering valuable insights for developers and investors in the commercial real estate sector.

Also Read: Flex Spaces to Play Major Role in Office Expansion, Survey Reveals

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However, widespread adoption is still a long way, and this can be attributed to the lack of industry-wide guidance, transparency, legal complexities, and split incentives. While the beginnings of change are already evident, India still has a long road to travel on the green lease continuum.

Global occupiers lead the way in sustainable practices

Global occupiers and institutional landlords are at the forefront of sustainable practices, with GCCs accounting for over three fourth of the overall green leasing activity in India. Moreover, it comes as no surprise that the two largest GCC markets of Hyderabad and Bengaluru lead the adoption of green leasing practices, accounting for 64% of the overall green leasing in India.

Waste management, energy efficiency and data sharing are key aspects

Green leasing clauses mainly focus on waste management, energy efficiency and data sharing aspects, with waste management and recycling obligations finding their way into most green lease agreements and some standard lease agreements as well. Energy efficiency is an important instrument towards reducing a building’s carbon footprint and hence, multiple clauses are centred around it.

“Sustainability has now firmly been incorporated into the board room agenda. Various strategies are being devised to reduce carbon emissions from the built environment, and green building certifications and green leases play a crucial role in this endeavor. The Indian market is making significant strides towards sustainability and the increase in green-certified office penetration from 39% in 2020 to 53% in 2023, is a clear indication of this progress. However, environmental performance results will still be lackluster if the building is not operated efficiently. Given the important role of occupiers in ensuring operational efficiency, moving from ‘traditional leases’ to ‘collaboration based green leases’ that enable data sharing and active collaboration between building owners and occupiers, is the need of the hour”, said Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

“The office segment saw the last two decades focus on Green Buildings. We believe this contributed to India reducing its GDP emission intensity by 33 percent between 2005 and 2019, achieving the target 11 years in advance. Next target is to reduce GDP emissions by 45% by 2030 and achieve net zero emissions by 2070. The realty sector will play a key role in this mission and The next two decades are going to see the focus move to Green Leasing. Green leases, accounting for around 15% of overall leasing today, are bound to reach around 15-20% penetration within the next 1-2 years. As both parties, landlords, and occupiers realize the benefits of green leasing, we believe a significant rental arbitrage to the tune of 10-15% will soon be visible between green and non-green leases”, said Abhishek Kiran Gupta, CEO & Co-founder, CRE Matrix.

Outlook

Looking ahead, green building certification will become a de-facto requirement for prominent occupiers in their selection of office spaces. As occupiers integrate environmental, social, and governance (ESG) factors and net zero carbon (NZC) targets into their decision-making, the green lease contract will play a crucial role. It will go beyond basic energy conservation ambitions to include clauses related to social value and good governance. Occupiers and landlords will engage in active mission-aligned collaboration throughout the life of the lease with measurable goals and corresponding KPIs to ensure desired outcomes. Importantly, a building’s value will increasingly rely on its environmental performance, and collaborative green leases will be a critical part of asset management strategies.

Also Read: Godrej Properties sells over 600 homes worth INR 2,600 crore at the launch of its project Godrej Aristocrat in Gurugram

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