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India’s green real estate assets availability grows 37% in 5 years
Real Estate

India’s green real estate assets availability grows 37% in 5 years

Green real estate assets availability in India increased by 37% in the last five years, according to a recent CBRE report.

According to the report, green real estate assets in the top six cities - National Capital Region (NCR), Mumbai, Pune, Hyderabad, Bengaluru, and Chennai- have grown considerably over the last decade, with their share of total office stock growing from 24% in 2011 to 31% in 2021.

The certified green office stock increased by 177% in the last five years. It increased to 212 million sq ft in the third quarter (Q3) of 2021 from 80 million sq ft in 2011.

The last five years mainly saw a prominent push towards green buildings witnessing a 37% growth in the supply of certified buildings, including the addition of about 78 million sq ft of certified stock, when compared with the last five years.

It shows that the Indian real estate sector is growing more conscious of its environmental, social, and governance (ESG) compliant principles and is moving towards ingraining sustainability in its assets.

According to the World Economic Forum (WEF), buildings account for about 40% of global greenhouse gas emissions and 40% of raw material use.

As a result, analysing and incorporating ESG into real estate and construction is essential for countries to meet their sustainability targets.

The research revealed that NCR and Bengaluru are ahead of the curve, accounting for around 54% of India's total certified office stock.

While NCR and Hyderabad top the pack in terms of the share of certified buildings in their stock, with 44% share each, Chennai comes in third with 37%.

Meanwhile, Mumbai and Pune 16 and 15%, respectively, have a substantial potential to enhance their share of this parameter.

Non-Special Economic Zones (SEZ) projects in Bengaluru, Mumbai, and the NCR have a higher proportion of certified stock. However, SEZ projects in Chennai and Pune have a larger share of certified stock.

Mumbai is the industry leader in terms of green non-SEZ rental premiums, overseeing a 33% rental premium over the non-certified stock, followed by Chennai (31%).

Meanwhile, Pune and Hyderabad were laggards at 5% and 11% premium, respectively.

Institutional asset owners are ahead of the curve as they hold more than 45% of India's total office stock while holding just 22% of the country's entire office stock.

According to the analysis, more than 35% of total real estate investment trust (REIT) assets were green-certified as of Q3 2021.

Moreover, this number is likely to increase further as the legislative and regulatory environment develops.

Image Source

Also read: Royal Green Realty to infuse Rs 150 cr in affordable housing project

Green real estate assets availability in India increased by 37% in the last five years, according to a recent CBRE report. According to the report, green real estate assets in the top six cities - National Capital Region (NCR), Mumbai, Pune, Hyderabad, Bengaluru, and Chennai- have grown considerably over the last decade, with their share of total office stock growing from 24% in 2011 to 31% in 2021. The certified green office stock increased by 177% in the last five years. It increased to 212 million sq ft in the third quarter (Q3) of 2021 from 80 million sq ft in 2011. The last five years mainly saw a prominent push towards green buildings witnessing a 37% growth in the supply of certified buildings, including the addition of about 78 million sq ft of certified stock, when compared with the last five years. It shows that the Indian real estate sector is growing more conscious of its environmental, social, and governance (ESG) compliant principles and is moving towards ingraining sustainability in its assets. According to the World Economic Forum (WEF), buildings account for about 40% of global greenhouse gas emissions and 40% of raw material use. As a result, analysing and incorporating ESG into real estate and construction is essential for countries to meet their sustainability targets. The research revealed that NCR and Bengaluru are ahead of the curve, accounting for around 54% of India's total certified office stock. While NCR and Hyderabad top the pack in terms of the share of certified buildings in their stock, with 44% share each, Chennai comes in third with 37%. Meanwhile, Mumbai and Pune 16 and 15%, respectively, have a substantial potential to enhance their share of this parameter. Non-Special Economic Zones (SEZ) projects in Bengaluru, Mumbai, and the NCR have a higher proportion of certified stock. However, SEZ projects in Chennai and Pune have a larger share of certified stock. Mumbai is the industry leader in terms of green non-SEZ rental premiums, overseeing a 33% rental premium over the non-certified stock, followed by Chennai (31%). Meanwhile, Pune and Hyderabad were laggards at 5% and 11% premium, respectively. Institutional asset owners are ahead of the curve as they hold more than 45% of India's total office stock while holding just 22% of the country's entire office stock. According to the analysis, more than 35% of total real estate investment trust (REIT) assets were green-certified as of Q3 2021. Moreover, this number is likely to increase further as the legislative and regulatory environment develops. Image Source Also read: Royal Green Realty to infuse Rs 150 cr in affordable housing project

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