Green realty spike: India's commercial real estate sector sees green penetration surge to 61 per cent in Q4 2023 according to a Colliers report. This surge in green-certified Grade A office stock reflects a growing commitment amongst stakeholders to embrace eco-friendly practices in the built environment.
Regional leaders in sustainable real estate
Bengaluru and Hyderabad emerged as frontrunners in the adoption of sustainable elements within office buildings, showcasing a 71 per cent and 61 per cent green penetration respectively. This regional leadership highlights a concerted effort by these cities to integrate eco-friendly features into their built infrastructure.
Rising trend of sustainability
The momentum towards sustainability is primarily fuelled by increasing global awareness of climate change and its impacts. In response, stakeholders within India's commercial real estate sector are voluntarily embracing sustainable practices, marking a departure from conventional norms.
One notable trend is the increasing prevalence of sustainability reporting amongst stakeholders, reflecting a broader commitment towards achieving eventual net-zero targets. This shift towards transparency underscores the industry's dedication to align with Environmental, Social, and Governance (ESG) principles.
Green leasing on the rise
The adoption of green leasing is expected to gain momentum as occupiers and developers alike seek to align with ESG principles. This trend indicates a growing demand for environmentally sustainable office spaces, driving developers to incorporate green features into their projects.
Looking ahead, the potential for green investment opportunities in India's office market remains substantial. An estimated 400-460 million sq ft of existing office stock holds the potential for complete E-compliance through retrofitting or minimal capex upgrades in the coming years.
Moreover, upcoming commercial developments are poised to prioritise E-compliance from inception, indicating a promising trajectory towards sustainability. This concerted effort is projected to propel green-certified Grade A office stock to surpass 550 million sq ft, representing 65-70 per cent of the overall office stock in India by 2026.
Green building momentum
With sustainability taking centre stage in the commercial real estate sector, developers and stakeholders are increasingly recognising the tangible benefits of green buildings. As such, initiatives for E-upgrades and retrofitting are expected to become more pervasive, offering substantial net cash flow benefits through enhanced energy efficiency and improved occupancy levels.
India's journey towards a more sustainable built environment is gaining momentum, signalling a transformative shift towards greener and more environmentally responsible practices within the commercial real estate, according to experts.
Source: republicworld.com
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