Summary:

The increased demand for certified green buildings is transforming India's commercial real estate market, driven by global capability centres (GCCs) and IT/ITeS companies. These organizations, which account for 50-60% of office leasing, prioritize sustainable workplaces to meet environmental and corporate goals. While green buildings cost 3-5% more upfront, renters are willing to pay a premium for 30-35% energy savings and long-term cost benefits.

GCCs are expected to account for a large share of net leasing over the next two years, accelerating the shift toward sustainable buildings. As global organizations focus on ESG goals, developers of green buildings are well-positioned for growth. By September 2024, 95% of CRISIL-rated assets will have achieved green certification, with nearly all office REITs certified. Green investment funds and developer incentives are driving long-term real estate growth.

Source: IBEF

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