Bengaluru and Mumbai have emerged as the top cities for green-certified office leasing, according to a report by Colliers. Together, these cities accounted for over 50% of the 13 million sq ft leased in green-certified buildings across the top six cities in Q2 2024. This represents a 24% year-over-year increase and an impressive 82% share of overall leasing during the quarter.
The top six cities—Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai, and Pune—saw a significant portion of green office space leased. Notably, about 60% of the leased space was in relatively new developments established in the last five years. This trend highlights a growing corporate awareness of sustainability and its role in mitigating climate change.
Technology, engineering, and manufacturing firms have been at the forefront, with about 80% of their leasing activities involving green-certified buildings since 2023. The BFSI sector also shows a strong preference for green spaces. The trend reflects a broader commitment to sustainability and aligns with national sustainability goals, further supported by SEBI’s mandatory sustainability reporting.
The increase in demand for green-certified offices is driving the construction of such buildings. As of June 2024, about 67% of Grade A office buildings in the top six cities are green-certified. Looking ahead, over 150 million sq ft of new Grade A office developments are expected to be green-certified, expanding the total green office stock to over 600 million sq ft.
Developers are also retrofitting older office buildings to meet green standards. This shift in focus underscores a commitment to sustainability and efficient use of resources in office real estate.
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