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A recent report by CBRE South Asia Pvt. Ltd. has shed light on the remarkable growth of the real estate sector in India, outlining key trends and projections for the remainder of 2023. The report has unveiled a surge in green-certified office spaces across the nation, highlighting significant strides in sustainability.
According to the report, the Indian real estate landscape has witnessed a substantial increase of over 36% in green-certified office stock since 2019, totalling approximately 342 million square feet. This surge has primarily unfolded in the top six cities of India, with Bangalore, Delhi-NCR, and Mumbai leading the charge, collectively accounting for a staggering 68% of the nation's green-certified office stock as of June 2023. This remarkable growth in certified green office space reflects a compound annual growth rate (CAGR) of approximately 7.1% over the past five years.
The report attributes this remarkable expansion in sustainable office spaces to a growing emphasis on environmental, social, and governance (ESG) regulations, both globally and domestically. Developers and occupiers alike are increasingly prioritizing sustainability as they recognize the long-term benefits of green-compliant properties. Modern, premium, and sustainable spaces are becoming highly sought-after in response to this trend.
Bangalore has emerged as the leader among Indian cities in terms of green-compliant office stock, boasting an impressive 30% share of the total pan-India stock. Following closely behind is Delhi-NCR with a 21% share, and Mumbai with 17% of the total certified office stock in India as of June 2023. Hyderabad, Chennai, and Pune also contribute significantly to the green office stock, accounting for 15%, 9%, and 8% respectively, of the total pan-India stock.
Global and domestic occupiers are increasingly making sustainability a top priority, committing to ambitious targets with far-reaching impacts. Mandates such as the Corporate Sustainability Reporting Directive (CSRD), Enhancement and Standardization of Climate-related Disclosures, and India's Business Responsibility and Sustainability Reports (BRSR) are driving occupiers to continue leasing next-generation, green-certified office spaces.
As the real estate sector in India continues to evolve, the CBRE report underscores the crucial role of sustainability in shaping the future of office spaces, emphasizing the importance of green certification and environmentally responsible building practices in the industry's growth trajectory.
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