In the office space sector, sustainability is a key trend and the sector is witnessing a considerable rise in green buildings. There has been a 36 percent increase in green-certified office buildings in the top six metro cities in the last three and half years, as per a recent report by CBRE and Confederation of Indian Industry (CII) titled 'Indian Real Estate: Taking Giant Strides - 2023 Mid-Year Outlook.’

Bangalore leads among Indian cities in terms of green-compliant office space, with 30 percent of the nationwide total. Following closely are Delhi-NCR with around 21 percent and Mumbai with about 17 percent of the certified office stock across India.

Besides, global and national mandates, including the Corporate Sustainability Reporting Directive (CSRD), and India’s Business Responsibility and Sustainability Reports (BRSR) have led to continued leasing in next-generation, green-certified office spaces. The global and domestic environmental, social, and governance (ESG) regulations are also prompting occupiers to seek premium and sustainable office spaces.

Green building ratings help reduce environmental impact and lower operating costs in buildings and workspaces. GRIHA, LEED, and IGBC are rating systems facilitating certification for green buildings. The green-certified office space stock stands at 342 million sq. ft. in June 2023 from 251 million sq. ft. in 2019. As of June 2023, Bengaluru, Delhi-NCR, and Mumbai were among the top three cities, collectively accounting for approx. 68 percent of the total green-certified office space stock.

Sustainable practices is particularly evident in the commercial real estate sector, which includes office and retail spaces. Grade-A office developers are adapting their approach by incorporating features such as open areas, natural lighting, and energy-efficient practices. Several office spaces are IGBC-certified green buildings.

The report further highlighted that the certified green office stock has experienced significant growth over the past five years, achieving a CAGR of 7.1 percent. Corporations and brands are eager to secure space in these environmentally-friendly buildings which prioritize energy efficiency and reduce carbon emissions.

Encompassing sustainable site planning, efficient construction management, energy conservation, water, and waste management, among others are leading to eco-friendly and economically sound work environments while aligning with global sustainability goals.