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With nearly 75% share in H1 2024, occupier interest growing in green office spaces
With nearly 75% share in H1 2024, occupier interest growing in green office spaces

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Bengaluru and Mumbai saw the highest leasing in green-certified buildings, accounting for over 50% share in Q2 2024.


Bengaluru, 13 Aug 2024: With an unwavering focus on sustainable built spaces, occupiers’ preference to lease in green certified buildings has gained momentum in key office markets across India. During Q2 2024, about 13 mn sq ft of office space in the top six cities has been leased in green-certified buildings. This represents a 24% YoY increase and accounts for an impressive 82% share in overall leasing during the quarter. This rapid growth is an indication of the rising awareness amongst corporate occupiers with respect to the role that built structures have to play in containing issues related to climate change through reducing carbon footprint. The share of Bengaluru followed by Mumbai remained significant, together accounting for over 50% of the leases in green-certified buildings in Q2 2024. Interestingly, of the 13 mn sq ft of leases signed in green buildings, about 60% were in relatively newer developments which have come in the last 5 years.

Currently, LEED, GRIHA and WELL are some of the prominent green certifications available in the Indian market, which validate buildings as ‘green’ by assessing various parameters including energy consumption, waste generation and alignment of design with health and wellness aspects. Real estate developers are increasingly aligning their offerings with global sustainability standards, simultaneously presenting various tangible benefits to their tenants including lower operational costs, improved indoor air quality and enhanced employee productivity.

Trend of leasing in green-certified buildings (Q1 2023 – Q2 2024)

Technology and Engineering & Manufacturing companies at the forefront

About 80% of leasing by technology and engineering & manufacturing firms since 2023 were in green-certified buildings. Moreover, it is noteworthy that 62% of the flex players prefer space take-up in green-certified buildings. Overall, at an India level, technology sector accounted for about 27% share in the cumulative space take up in green-certified buildings since 2023, followed by occupiers from Engineering & Manufacturing and BFSI sectors with about 19% share each. 

City-wise leasing in green buildings (Q1 2023 – Q2 2024)

 Source: Colliers
*On basis of % of leasing in green-certified buildings for the specific city in a particular sector in Q1 2023-Q2 2024
Notes: Data pertains to Grade A stock; Gross leasing does not include lease renewals, pre-commitments and deals where only a letter of Intent has been signed

More than two-thirds of Grade A office stock in India is currently green certified

In tandem with the rise in demand for green-certified building, green building stock is also seeing an increase. According to Colliers, as of June 2024, about 67% of the Grade A office buildings across the top six cities were green certified. Bengaluru and Delhi NCR account for about half of the green office stock in the country.  Of the 13.2 mn sq ft of new Grade A office completions in Q2 2024, almost 70% are green-certified. In the next two-three years, majority of the over 150 mn sq ft Grade A office developments in various stages of construction across the six major cities are likely to be green certified, expanding Grade A green stock to over 600 mn sq ft. 

Trends in new supply of green-certified buildings (Q1 2023 – Q2 2024)

 Source: Colliers
Notes: Data pertains to Grade A stock; Top 6 cities include Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai, and Pune

Read more: Colliers | With nearly 75% share in H1 2024, occupier interest growing in green office spaces


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Colliers India
Sukanya Dasgupta, Head Marketing and Communications - sukanya.dasgupta@colliers.com

Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 66 countries, our 18,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 28 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of approximately 20% for shareholders. With annual revenues of $4.5 billion and $98 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors, and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.

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