Most Grade A office spaces in India’s top seven cities are green-certified, a recent report has claimed, suggesting a shift of focus from developers on environmental, social, and governance (ESG) factors.
According to Vestian Research, over 65 per cent of Grade A office space in India’s top seven cities is green-certified. Of the 1,362 Grade A buildings across these cities, 805 are green certified, it adds. Southern cities such as Bengaluru, Chennai and Hyderabad comprise 58 per cent of India’s total green building stock.
Among the top seven cities, Bengaluru leads with 172 million square feet of green-certified space. Chennai has the highest percentage, with 83 per cent of its Grade A stock being green-certified.Q
Quite contrary, Pune, despite being a prominent hub for multinational companies, has the lowest percentage of green-certified office buildings at 56 per cent. On the other hand, Kolkata, despite having the lowest total of Grade A office buildings nationwide, still boasts 62 per cent green certification
The report further points out that Leadership in Energy and Environmental Design (LEED) certification has achieved a 74 per cent market share. Among LEED, Gold is the most prevalent level, with 49 per cent of buildings holding Gold LEED certification and 51 per cent accredited as Gold by the Indian Green Building Council (IGBC).
Gold certification denotes that a building has excelled in its sustainable design and operation, securing over 60 per cent of the LEED points.
Green-certified buildings typically command a 12 to 14 per cent rental premium over non-green buildings, reflecting the market’s reward for sustainable development investments. Bengaluru, Chennai and Hyderabad, therefore, have higher premiums, indicating a strong emphasis on sustainability in these tech hubs, where companies are willing to pay more to support environmental responsibility and enhance employee well-being.