Hyderabad is 2nd in green buildings with office space of 95.9 mn
Out of the 152.9mn sft of Grade A buildings considered for analysis, 63 per cent is green certified, says Vestian research
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Hyderabad: Out of 152.9 million sft of Grade A buildings in Hyderabad, 95.9 million sft of office space is green certified, commanding 13 to 15 per cent premium on average in rental values over non-green buildings, says a research report from Vestian.
Bangalore is leading in terms of green stock with 172.1 million sft, whereas Chennai accounts for the highest percentage share, with 83 per cent green certified buildings out of the city’s total Grade A stock.
Across India’s top seven cities, over 65 per cent of Grade A office space is green-certified. Out of 1,362 Grade A buildings, 805 hold green certifications, highlighting India’s growing commitment to sustainable construction, the commercial real estate research company said.
The report further pointed out that as India’s office market is attracting global occupiers, the developers are increasingly prioritising international certifications.
This trend is reflected in the dominance of LEED certification, which accounts for 74 per cent share as of Q2, 2024, wherein Gold is the most prominent certification in the Indian office market as 49 per cent of buildings are certified gold under LEED, and 51 per cent are accredited gold under IGBC, it added.
In terms of built-up area analysis, Grade A office buildings with a built-up area of less than 5 lakh sft account for 47 per cent of the total number of green-certified buildings. On the other hand, office buildings with a built-up area of more than 10 lakh sft account for only 19 per cent of the total number of green-certified buildings. Notably, green certification is rare in office buildings with a built-up area of less than 1 lakh sft, the Vestian report said.
In rental values, green-certified buildings command a 12 per cent to 14 per cent premium on average over non-green buildings. Vestian report indicated that developers are rewarded for initial investment in costly sustainable development, as they can charge a premium from occupiers. Bengaluru leads the pack with a premium on rents of 23 to 25 per cent with Chennai and Hyderabad following at 13-15 per cent and 12-14 per cent, respectively.
