Green office spaces dominate leasing market in major Indian cities

Interest in green office spaces in India has surged as companies aim to reduce carbon footprints and align with global sustainability goals. A report by Colliers reveals that around 13 million square feet of office space in the top six cities was leased in green-certified buildings during the April-June 2024 period.

Image Credit: Pixabay

In a bid to reduce carbon footprint and align with global sustainability goals, the interest in green office spaces in India has seen a significant rise. According to a report by Colliers, approximately 13 million square feet of office space in the top six cities was leased in green-certified buildings during the April-June 2024 period. This marks a 24% year-on-year increase and represents an impressive 82% of the overall leasing activity during the quarter.

The report also highlights that the majority of upcoming office supply, currently in various stages of construction, is expected to be green-certified. This shift is set to expand the green office stock to over 600 million square feet within the next two to three years. The surge in green leases reflects a strong commitment by occupiers to align their sustainability goals with broader national targets.

Arpit Mehrotra, Managing Director, Office Services, India at Colliers, emphasized that since 2023, about 70-80% of the space uptake by key sectors such as engineering, manufacturing, technology, and BFSI has been in green-certified buildings. This growing trend underscores the rising awareness among corporate occupiers regarding the environmental impact of their operations.

Bengaluru and Mumbai have been leading the charge, together accounting for over 50% of the leases in green-certified buildings in Q2 2024. The report further notes that about 60% of the 13 million square feet of leases signed in green buildings were in developments that have emerged in the last five years.

As more companies prioritize sustainability, the demand for green office spaces is expected to continue its upward trajectory, reinforcing India’s position in the global green building movement.