India’s green building market is set to grow at a compound annual growth rate (CAGR) of 10.5 per cent, reaching $85 billion by FY32, according to Equirus Capital. The surge is driven by rising demand for certified green buildings from both investors and tenants, amid tightening supply.

Certified green buildings offer numerous benefits, including stronger financial returns, lower operating costs, and higher occupancy rates. Over the past five years, the supply of certified green spaces has tripled, with absorption rates 1.75 times higher than non-certified properties.

Notable examples include Bengaluru’s IGBC Platinum-certified luxury residences, which commanded a 12 per cent resale premium, and a LEED Gold-certified office complex in Gurugram, which saw 18 per cent higher rental values. In Mysuru, a LEED Platinum-certified campus reduced operational costs by Rs 60 million annually.

Major developers such as Brigade Group, DLF, and Ajmera Realty are increasingly focusing on sustainable construction. India remains a leader in green buildings, ranking third globally for LEED-certified spaces, supporting the country’s climate goals set at COP26.