Green-certified office stock in the country stood at about 503 million sq ft in 2024, representing 66% of the total Grade A inventory across the top six cities, said a new report by CREDAI Colliers.
The ~40% rise in green office stock, since the beginning of the ongoing decade, reflects developers’ commitment to evolving market scenario and the resultant occupier preferences,the report said.
Notably, Bengaluru accounted for 31% of India’s green-certified office stock, followed by Delhi NCR (19%) and Hyderabad (17%). In terms of green penetration, which is indicated by the share of green-certified buildings in the total Grade A office stock in each city, Hyderabad led other major markets with a penetration rate of 75%, closely followed by Bengaluru with 73% in 2024.
The surge in green building supply has been driven by a clear shift in occupier preferences, with ~75% of leases in 2024 being transacted in green-certified buildings.
As per Colliers analysis, average occupancy levels in Grade A green office buildings were between 80–90%, compared to 65–85% in non-green-certified buildings. Furthermore, green-certified office spaces command significant rental premiums, led by Mumbai at 24% premium followed by Chennai (16%) & Hyderabad (14%).
“Leasing in green-certified buildings surged annually by 20% in 2024. Looking ahead, the proportion of leasing in green-certified buildings is expected to rise from ~75% currently to about 80-85% in the next few years. This underscores the continued shift towards sustainable real estate development in the office market of the country,” said Badal Yagnik, CEO,Colliers India.