Investors, occupiers favour eco-certified real estate
Real Estate

Investors, occupiers favour eco-certified real estate

The growing emphasis on establishing long-term sustainability objectives across various industries has led to a stronger preference among global institutional investors and developers for eco-friendly buildings. Corporate office occupiers are driving this shift towards climate-conscious properties with lower carbon emissions.

Industry experts have noted that sustainability is now a key consideration in almost all negotiations for office properties, whether for outright purchase or leasing purposes. Financiers of housing projects are also showing a growing interest in investing in such projects.

This change is not only a result of a global movement but also a response to the Indian government's new environmental, social, and governance (ESG) reporting requirements for the top 1,000 listed companies in terms of market capitalisation. The Securities and Exchange Board of India (Sebi) mandates that these companies must disclose their ESG performance through the Business Responsibility and Sustainability Report (BRR), which has been mandatory since 2022-23.

In India, the current penetration of green Grade A office buildings stands at 374 million sq ft, accounting for 48.5% of the total supply of 771.5 million sq ft. Among the major cities, Bengaluru has 84 million sq ft, Delhi-NCR has 78.1 million sq ft, and Mumbai has 68.1 million sq ft of green office space. According to data from JLL India, 60% of Kolkata's office supply, 58% of Chennai's supply, and 53.4% of Delhi-NCR's supply are green certified.

The Confederation of Real Estate Developers Association of India (CREDAI), a body representing realty developers, recently formed a nationwide partnership with IGBC to develop more than 4,000 sustainable projects by 2030. So far, member developers have already undertaken over 55 green projects, totaling 32 million square feet.

Given that the built environment is responsible for nearly 40% of global carbon emissions, environmental initiatives are now an essential part of lease agreements. These agreements establish clear objectives on how a building should be managed, occupied sustainably, and continuously improved over time.

Bengaluru, Mumbai, Delhi-NCR, and Hyderabad are the top four cities in terms of overall Grade-A office space and together account for over three-fourths of the existing green footprint.

Many organisations and corporations that have experienced the benefits of going green have extended their commitment to sustainability by adopting green ratings for their new projects as well as retrofitting their existing assets.

Also read:
Brigade to launch 10 housing projects in Bengaluru and Chennai
Shinde, Fadnavis to launch Thane cluster development project


The growing emphasis on establishing long-term sustainability objectives across various industries has led to a stronger preference among global institutional investors and developers for eco-friendly buildings. Corporate office occupiers are driving this shift towards climate-conscious properties with lower carbon emissions. Industry experts have noted that sustainability is now a key consideration in almost all negotiations for office properties, whether for outright purchase or leasing purposes. Financiers of housing projects are also showing a growing interest in investing in such projects. This change is not only a result of a global movement but also a response to the Indian government's new environmental, social, and governance (ESG) reporting requirements for the top 1,000 listed companies in terms of market capitalisation. The Securities and Exchange Board of India (Sebi) mandates that these companies must disclose their ESG performance through the Business Responsibility and Sustainability Report (BRR), which has been mandatory since 2022-23. In India, the current penetration of green Grade A office buildings stands at 374 million sq ft, accounting for 48.5% of the total supply of 771.5 million sq ft. Among the major cities, Bengaluru has 84 million sq ft, Delhi-NCR has 78.1 million sq ft, and Mumbai has 68.1 million sq ft of green office space. According to data from JLL India, 60% of Kolkata's office supply, 58% of Chennai's supply, and 53.4% of Delhi-NCR's supply are green certified. The Confederation of Real Estate Developers Association of India (CREDAI), a body representing realty developers, recently formed a nationwide partnership with IGBC to develop more than 4,000 sustainable projects by 2030. So far, member developers have already undertaken over 55 green projects, totaling 32 million square feet. Given that the built environment is responsible for nearly 40% of global carbon emissions, environmental initiatives are now an essential part of lease agreements. These agreements establish clear objectives on how a building should be managed, occupied sustainably, and continuously improved over time. Bengaluru, Mumbai, Delhi-NCR, and Hyderabad are the top four cities in terms of overall Grade-A office space and together account for over three-fourths of the existing green footprint. Many organisations and corporations that have experienced the benefits of going green have extended their commitment to sustainability by adopting green ratings for their new projects as well as retrofitting their existing assets. Also read: Brigade to launch 10 housing projects in Bengaluru and Chennai Shinde, Fadnavis to launch Thane cluster development project

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