Afsha
Today’s society is more conscious of its environment than ever. Opting for sustainable alternatives every chance it gets, which is not just limited to the small choices made on a daily basis, such as using an electric vehicle or avoiding the use of plastic bags, but to practicing measures on a scale that can significantly contribute to the betterment of the environment.
One such measure is the usage of green office spaces, and the increasing number of green-certified office spaces across the country is yet another testament to the growing environmental awareness in society.
The Report
Real estate consultant Coldwell Banker Richard Ellis (CBRE) and industry body Confederation of Indian Industry (CII) released their report titled “Indian Real Estate: Taking Giant Strides – 2023 Mid-Year Outlook” at the CII Realty 2023 conference. The joint CBRE-CII report identifies the real estate growth in India, the key trends, and the projections for the Indian real estate market.
According to a CBRE-CII report, courtesy of the increasing focus on sustainability by both developers and occupiers, the green-certified office stock in India has increased by 36% over the last three and a half years to 342 million square feet across the top six major cities in India, which stood at 251 million square feet in the year 2019.
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Metro Cities Taking the Lead
Metropolitan cities of Bangalore, Delhi-NCR, and Mumbai are among the top 3 cities spearheading green-compliant office spaces, with a cumulative share of 68% of the total green-certified office stock in India as of June 2023, the report states. The certified green office stock, as stated by the real estate consultant, also increased substantially, growing at a Compound Annual Growth Rate (CAGR) of around 7.1% in the last five years.
While Bengaluru leads all Indian cities with the highest green-compliant office buildings, accounting for around 30% of the total PAN-India stock, Delhi-NCR takes the next spot with 21%, followed by Mumbai with 17% of the total certified office stock in India as of June 2023. As for the cities of Hyderabad, Chennai, and Pune, they account for 15%, 9%, and 8%, respectively, of the total PAN-India stock.
Enhanced focus on global and domestic Environmental, Social and Governance (ESG) regulations is driving the occupiers’ wave towards modern, premium, and sustainable green office space in the medium to long term. Sustainable building features and operations are increasingly becoming developers’ and occupiers’ most sought-after building attributes, the report further adds.
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Anshuman Magazine, chairman and CEO, India, South-East Asia, Middle East & Africa, CBRE, stated, “The Indian real estate sector has demonstrated remarkable resilience in January-June ’23, despite a global economic slowdown, primarily fuelled by robust domestic demand. In line with most major economies globally, the rate hike cycle in India seems to have come to a halt, with the RBI maintaining the status quo in the past two reviews.”
Following it by, “As the economy gains momentum and the real estate sector thrives, there is a growing emphasis on ESG and its compliance. We anticipate accelerated demand for modern, tech-enabled, and green-compliant spaces in the upcoming quarter. Additionally, we also expect alternative segments such as GCCs, data centers, and flexible workspaces to play a pivotal role in bolstering real estate growth.”
Concluding Outlook
The report also highlighted that, with top office occupiers across the country committing to achieve net zero by 2050, along with other sustainability metrics such as energy efficiency, water, and waste management, the flight towards better quality assets and increasing their preference towards green-certified buildings is expected to continue.
Over the past seven years, green-certified stock in India has almost doubled to about 342 million square feet at 9% CAGR, buoyed by the demand for green-compliant properties, the CBRE report stated.
The global and domestic occupiers are prioritizing sustainability and have committed to targets with far-reaching impact, the report added.
Global and national mandates, including the Corporate Sustainability Reporting Directive (CSRD), Enhancement and Standardisation of Climate-Related Disclosures, and India’s Business Responsibility and Sustainability Reports (BRSR), push occupiers to continue leasing in next-generation, green-certified office spaces.
Frequently Asked Questions (FAQs)
1. What is a green office space?
To put it simply, a green office space that incorporates natural elements such as sunlight, organic products, etc. while also being energy and resource-efficient and environmentally responsible.
2. What does being green-certified mean?
For real estate properties, the green certification (or rating) is used to indicate the level of environmental friendliness. India follows the Green Rating for Integrated Habitat Assessment (GRIHA) as a national rating system.
3. Are the modern, flexible workspaces sustainable?
Most certainly, in comparison to their traditional counterparts, they are. And at Stylework, we consistently work towards inculcating sustainable designs, energy-efficient systems, and eco-friendly practices in our workspaces.
5. How can I find green office spaces around me?
Stylework has a vast network of flexible office space solutions across the cities of Bengaluru, Delhi-NCR, Mumbai, Hyderabad, Chennai, and Pune—the top 6 cities with green-compliant office spaces—so you can always look up for green-certified office spaces or green coworking spaces conveniently here.
6. How do I access these workspaces?
Stylework offers day passes starting from ₹249 only, and you could always choose from our coworking membership plans—fixed or multi-locational plans—depending on your needs. You could also book a free tour of your desired coworking space before making a decision.