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

Next Story
Resources

Skyview by Empyrean is Making Benchmarks in the Indian Ropeway Industry

FIL Industries Private Limited, the parent company of Empyrean Skyview Projects that pioneered ropeway mobility solutions in India with Jammu’s Skyview Gondola, is currently developing the Dehradun-Mussoorie ropeway and is on track to complete Phase I by September 2026. The ropeway is set to be India’s longest passenger aerial monocable covering 5.8 km between the foothills of Dehradun in Purkulgam and MDDA taxi stand in the hills of Mussoorie in just under 20 minutes. The firm pioneered green mobility solutions in India with the development of the flagship Skyview Gondola in Jam..

Next Story
Technology

Creativity is for Humans, Productivity is for Robots!

On most construction sites, the rhythm of progress is measured by the clang of steel, the hum of machinery and the sweat of thousands. But increasingly, new sounds are entering the mix: the quiet efficiency of algorithms, the hum of drones overhead, and the precision of robotic arms at work. Behind the concrete and cables, an invisible force is taking hold: data. It is turning blueprints into living simulations, managing fleets of machines, and helping engineers make decisions before a single brick is laid. This is not the construction of tomorrow; it is the architecture of today – built on ..

Next Story
Infrastructure Urban

Bhartiya Urban Unveils ‘Bhartiya Converge’ GCC Enablement Platform

Bhartiya Urban has launched Bhartiya Converge, its latest business venture designed to become India’s premier platform for enabling Global Capability Centres (GCCs). The initiative offers an integrated ecosystem aimed at helping global clients gain a competitive edge in today’s rapidly evolving business environment. Focused on enhancing turnaround time and operational efficiencies, the company seeks to deliver better business outcomes powered by top-tier talent. Bhartiya Converge presents a customised and integrated suite of microservices that addresses the nuanced and evolving operational..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?