Green-certified office space jump 36% across top 6 cities since 2019: Study

Green-certified office space stock have increased 36 per cent to 342 million square feet across six major cities in the last three and half years, according to a CBRE-CII report.

Real estate consultant CBRE and industry body CII on Wednesday released its report titled, 'Indian Real Estate: Taking Giant Strides - 2023 Mid-Year Outlook' at CII Realty conference here.

According to the report, green-certified office stock stood at 251 million square feet in 2019.

Enhanced focus on global and domestic Environmental, Social and Governance (ESG) regulations are driving occupiers' flight-to-quality wave towards modern, premium and sustainable spaces in the medium to long-term, the report said.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, "As the economy gains momentum and the real estate sector thrives, there is a growing emphasis on ESG and its compliance. We anticipate accelerated demand in modern, tech-enabled, and green-compliant spaces in the upcoming quarter."

Bengaluru, Delhi-NCR and Mumbai have a cumulative share of about 68 per cent in the total green-certified office stock as of June 2023.

Bengaluru has 104.5 million square feet of green-certified office space as of June 2023, followed by Delhi-NCR at 70.2 million square feet, Mumbai at 56.6 million square feet, Hyderabad at 51.9 million square feet, Chennai at 32.6 million square feet and Pune at 26.2 million square feet.

In the report, Amal Mishra, Co-founder, Urban Vault, said there has been a notable surge in demand for environmentally-friendly and energy-efficient office buildings from multinational corporations and domestic companies, reflecting a growing awareness of carbon footprints.

"In fact, investors and tenants are now willing to pay a premium for structures constructed in accordance with green building standards," Mishra said.