What’s happening in Real Estate?
In 2024, green-certified buildings accounted for a whopping 75% of all new office space leasing across India’s top 6 cities. That’s nearly 50 million sq ft of sustainable office space—a 20% jump from last year, as reported in the CREDAI–Colliers Green Building Report 2025.
But beyond the numbers, there’s a deeper story unfolding. Real estate isn’t just going green—it’s getting strategic about it.
Why Clients Should Care: Green Pays Off
Green buildings are no longer a “nice-to-have”—they’re an economic imperative:
- Rental Premiums: In Mumbai, green-certified office buildings command up to 24% higher rents compared to non-green peers. Similar trends are observed in Chennai (16%) and Hyderabad (14%).
- Occupancy Advantage: Occupancy rates in green-certified offices average 80–90%, higher than the 65–85% seen in non-certified spaces. For example, Hyderabad shows 80% occupancy in green buildings vs. 66% in conventional spaces.
- Retrofitting Yields Big Returns: For buildings less than 10 years old, environmental upgrades (E-upgrades) can yield 3–4x net cashflow benefit. Older buildings (>10 years) present an INR 425+ billion retrofitting opportunity, improving energy efficiency and attracting tenants.
Who’s Leading the Charge?
- Bengaluru (31%), Delhi NCR (19%), and Hyderabad (17%) together account for 67% of India’s green-certified Grade A office stock.
- LEED certification remains the most preferred standard, with 95% of new supply in the past five years being LEED-certified.
Government incentives are driving the growth of sustainable development by reducing upfront costs and enhancing the return on investment (ROI) in green initiatives. Developers benefit from fast-track environmental clearances, rebates on development charges, additional Floor Area Ratio (FAR), and reimbursements for green certification costs. Occupiers are supported through incentives for renewable energy, including Renewable Energy Certificates (RECs). Property owners of green buildings are eligible for property tax rebates, with the incentive amount varying based on the green building’s certification level.
These targeted incentives not only make sustainable choices more financially viable but also accelerate the adoption of green infrastructure across the real estate and infrastructure sectors.
2025 Outlook: What’s Next?
🔹 80–85% of office leasing in 2025 is projected to be in green buildings
🔹 170–200 mn sq ft of new commercial stock will likely be green-certified
🔹 Scope for retrofitting spans 355–385 mn sq ft, across aging office stock
🔹 Key sectors like tech, BFSI, engineering, and healthcare are leading adopters
At AVA, we’re committed to accelerating your green real estate transition. Whether you’re a developer, investor, or occupier, we help you!
