The office space sector is in the midst of a transformation, marked by a growing emphasis on sustainability. The latest trends reveal a significant rise in green buildings, making sustainability the need of the hour in the real estate industry. A recent report by CBRE and CII, titled ‘Indian Real Estate: Taking Giant Strides – 2023 Mid-Year Outlook,’ confirms this shift with a remarkable 36 per cent increase in green-certified office buildings in India’s top six metro cities over the last three and a half years.
In 2019, green-certified office space covered 251 million sqft. Fast forward to June 2023, and this figure has surged to an impressive 342 million sqft, underlining the growing momentum in environmentally conscious real estate development.
What’s driving this surge in green buildings? Sustainable building features and practices are now the most sought-after attributes for both developers and occupants, shaping the future of office spaces.
This growth is primarily attributed to the increasing emphasis on global and domestic Environmental, Social, and Governance (ESG) regulations. These regulations are compelling occupants to seek modern, premium, and sustainable office spaces.
Aman Trehan, Executive Director of Trehan Iris, articulates the shift, noting, “The real estate sector is placing a greater emphasis on sustainable practices, with more buildings receiving green certification. Investors and occupiers are increasingly seeking out green-certified projects that prioritize energy efficiency and reduce carbon emissions. Corporations and brands are eager to secure space in these environmentally-friendly buildings.”
Trehan further emphasizes, “The trend towards environmentally friendly workspaces is becoming increasingly popular. Grade A office developers are adapting their approach to building design by incorporating features such as open areas, natural lighting, and energy-efficient practices to create a greener ambiance. We prioritize sustainability in our projects, and our office spaces are IGBC-certified green buildings. These practices are breaking away from traditional approaches to office space design, allowing for innovation and the creation of modern, cutting-edge buildings.”
The report identifies Bengaluru, Delhi-NCR, and Mumbai as the leading cities embracing green buildings, collectively accounting for about 68 per cent of the total green-certified office space stock. Bengaluru takes the lead, comprising approximately 30 per cent of the nationwide total, with Delhi-NCR and Mumbai following closely at 21 per cent and 17 per cent, respectively.
On a global and national scale, occupants are placing a high priority on sustainability, committing to achieving ambitious targets. Mandates such as the Corporate Sustainability Reporting Directive (CSRD) and India’s Business Responsibility and Sustainability Reports (BRSR) are encouraging occupiers to lease next-generation, green-certified office spaces.
Kaustubh Chandra, Manager – Marketing & Leasing at Brahma Group, emphasizes the importance of green-certified buildings, stating, “In the evolving scenario of green real estate, there is an increased emphasis on green-certified buildings as they serve as a beacon of sustainability, encouraging eco-conscious construction practices and energy-efficient designs. Investors and occupiers are prioritizing sustainability, favoring projects that promote a green and healthy environment.”
Regarding their commitment to sustainability, Chandra adds, “We, as a company, are committed to a greener future, and our upcoming project will be a GRIHA-certified green building focused on eco-sensitive zoning regulations, sustainable site planning, construction management, energy efficiency, water and solid waste management, along with the use of sustainable building materials, and HVAC technology for occupant well-being. Besides, the project will foster a perfect balance of lifestyle, business, and sustainability.”
In conclusion, the Indian realty sector is experiencing a green revolution, with sustainability at its core. Developers and occupants are increasingly valuing green buildings, inspired by a growing focus on ESG regulations and a commitment to a greener, more sustainable future. This transformative shift is reshaping the workplace, creating modern, cutting-edge buildings that prioritize energy efficiency, environmental responsibility, and occupant well-being.