The real estate industry is moving beyond just bricks and mortar by becoming more environmentally conscious and sustainable in the face of climate change and global warming. Whether commercial or residential, the real estate sector has sensed the growing demand for sustainable buildings and has prioritized the decarbonization of its portfolios.
Characterized by resource-efficient operations and minimal carbon footprints, green commercial properties employ innovative architecture that integrates cutting-edge technology without compromising functionality and aesthetics. Properties that implement ESG practices to achieve sustainability not only reduce their environmental impact, but also improve the health and well-being of their occupants.
Green commercial office spaces feature a variety of characteristics such as energy efficiency, recycled and sustainable building materials, water conservation, quality indoor environment, renewable energy sources, smart building technology, etc. A paradigm shift in the real estate industry has enabled occupants to literally interact with the green environment.
Sustainable commercial and office spaces offer reduced energy consumption, lower gas emissions, a healthier living environment, increased property values and reduced maintenance costs. In short, green buildings offer not only health benefits but also economic benefits, making them an attractive option for the future of construction and commercial real estate development.
According to a report by the International Energy Agency, building construction accounts for 36 percent of the world’s annual energy use and 39 percent of greenhouse gas emissions. There’s no doubt that green real estate can significantly reduce these figures by adopting sustainable practices.
Green commercial real estate is a growing trend in India, especially in the Delhi National Capital Region. According to a Colliers report, green penetration in the Indian commercial real estate segment surged to 61 percent in Q4 2023. Upcoming commercial developments are committed to aligning with ESG principles, showing a promising trajectory towards sustainability.
According to the report, green certified Grade A office buildings will cross 550 million sq ft by 2026, accounting for 65% of the total office buildings in India. This is a vivid indication that the green building momentum has taken centre stage in commercial real estate with all stakeholders including tenants, investors, developers and regulators realising the tangible benefits of sustainability and its market value. Sustainability is undoubtedly the future of Indian real estate.
The growing demand for sustainable commercial office space has led developers to seek green building certifications. These certifications make properties more attractive to environmentally conscious tenants. Certification programs such as the U.S. Green Building Council's LEED (Leadership in Energy and Environmental Design) and GRIHA (Green Rating for Integrated Habitat Assessment) evaluate a building's environmental impact from construction to design. They assess various aspects such as green infrastructure, low-impact design, UHIE mitigation design, renewable energy use, energy optimization, water management, and more, all with a focus on occupant well-being.
Apart from this, the WELL certification, accredited by the US-based International WELL Building Institute, examines features such as air ventilation, water management, proper lighting and comfort. It places emphasis on employee well-being. Moreover, the Indian government has come up with several programs and incentives to encourage developers to adopt environmentally friendly design and construction methods. Recognizing the economic benefits of the green movement in the real estate industry, India has taken a giant step towards sustainability.
Overall, the future of green real estate is bright as property buyers, investors and construction industry players highlight the benefits of a sustainable economy. Sustainable commercial spaces and green leasing are seen as the future of Indian real estate as studies show that green-certified buildings enjoy higher occupancy rates and higher rents.
Indian developers are poised to construct green buildings that safeguard the environment and meet the needs of future generations. Sustainable commercial real estate has become an essential component in achieving the global net-zero target and India's contribution on this journey is commendable and noteworthy. Collective action from all stakeholders and supportive government policies have accelerated India's green mission.
