About 65% Growth in Grade A Green Office Stock Across Top 7 Indian Cities Since 2019
· As of H1 2025,
approx. 530 Mn sq. ft. of Grade A office stock is green certified across the
top 7 cities, against approx. 322 Mn sq. ft. back in 2019
· Total Grade A
office stock in the top 7 cities is approx. 865 Mn sq. ft. of which 530 Mn sq.
ft. or 61% is green certified
· With highest
green-certified office stock (approx. 163 Mn sq. ft.) among all cities,
Bengaluru also has highest percentage share (73%) of green stock out of its
total Grade A stock (approx. 223 Mn sq. ft.)
· In H1 2025, the top
7 cities saw net absorption of 26.8 Mn sq. ft. - over 74% (approx. 19.93 Mn sq.
ft.) was leased in green-certified office buildings
· Up to 24% higher
rentals for green-certified buildings in H1 2025, but vacancies lower at 14%
against 16.30% in non-green certified spaces
Mumbai, 4th August 2025: With global occupiers seeking
green certifications in new Indian office buildings, Grade A office developers
are increasingly constructing LEED, IGBC or GRIHA certified stock to stay in
sync with the demand. Latest ANAROCK Research data shows a significant 65% jump
in overall Grade A green-certified office stock across the top 7 cities since
2019.
Approx. 530 Mn sq. ft. of Grade A office stock in the top 7 cities out
of the total Grade A office stock of 865 Mn sq. ft. is green certified as of H1
2025 across cities. Back in 2019, approx. 322 Mn sq. ft. had such
certification.
At approx. 163 Mn sq. ft., Bengaluru has the maximum stock of
green-certified office stock among these cities in H1 2025 – a 31% share of the
total, green-certified inventory in the top 7 cities.
· NCR comes a distant
second with approx. 97 Mn sq. ft. or 18% overall green-certified share.
· Hyderabad has
approx. 87 Mn sq. ft. green certified Grade A office stock, or a 16% overall
share.
· Kolkata has the
least green-certified office stock with just approx. 17.4 Mn sq. ft., or
3%.
"City-wise, Bengaluru also accounts for the highest percentage
share of green-certified Grade A office stock in the top 7 cities,"
says Anuj Puri, Chairman - ANAROCK Group. "Of its total Grade
A office stock of 223 Mn sq. ft., nearly 73% or approx. 163 Mn sq. ft. in
Bengaluru is green-certified. In contrast, MMR - with total Grade A office
stock of approx. 144 Mn sq. ft. in H1 2025 - just 67 Mn sq. ft. or 47% as
green-certified."
In both NCR and Hyderabad, 62% each of the total Grade A office stock is
green-certified. In NCR, out of the total 157 Mn sq. ft. of office stock,
approx. 97 Mn sq. ft. is green-certified. In Hyderabad, approx. 87 Mn sq. ft.
of a total of 140 Mn sq. ft. Grade A office stock is green-certified.
“The push towards sustainability comes partly from the Government’s own
initiatives and commitments, and partly from the demand for such
solutions," adds Puri. "There is increasing awareness about the need
for sustainability across all real estate segments. However, the demand for
sustainable office buildings outstrips that for green housing. A vast number of
occupiers, especially MNCs and GCCs, now insist on sustainability features only
available in green-certified Grade A office buildings."
In contrast, there has still not been such an imperative-driven shift in
the Indian housing segment, and this is visible in the relative scarcity of
green residential stock in the country. Commercial real estate is proving to be
India's sustainability vanguard.
H1 2025: Rentals Vs Vacancy Levels
As per ANAROCK data, the top 7 cities saw approx. 26.8 Mn sq. ft. of
office space leased in H1 2025, of which over 74% (approx. 19.93 Mn sq. ft.)
was in green-certified office buildings. City-wise, Bengaluru led decisively -
of the net 6.6 Mn sq. ft. Grade A office stock leased in the city in the first
half this year, certified green buildings accounted for a massive 80% - approx.
5.3 Mn sq. ft.
In Pune, Kolkata and Chennai, the percentage share of leasing in the
green certified buildings stood at 76% each in H1 2025.
|
City |
Total Net Absorption (Mn sft) H1 2025 |
Net Absorption in Green-certified (Mn
sft) |
% Leasing Share of Green-Certified
stock |
|
Bangalore |
6.6 |
5.3 |
80% |
|
MMR |
4.5 |
3.25 |
72% |
|
NCR |
5 |
3.8 |
76% |
|
Chennai |
2.3 |
1.75 |
76% |
|
Hyderabad |
4.2 |
2.9 |
69% |
|
Pune |
3.8 |
2.9 |
76% |
|
Kolkata |
0.45 |
0.03 |
7% |
|
Total |
26.85 |
19.93 |
74% |
Source: ANAROCK Research & Advisory
Despite their commanding premium rentals vis-Ã -vis regular Grade A
office stock, green-certified office spaces have seen leasing increase
significantly over the last six years. The average monthly rentals of
green-certified office spaces in the top 7 cities are up to 24% higher than in
regular, non-certified Grade A office stock.
|
City |
Total Grade A Office Stock Vacancy |
Green Certified Office Stock Vacancy |
|
Bangalore |
12.40% |
12% |
|
MMR |
15.10% |
8% |
|
NCR |
22.20% |
20% |
|
Chennai |
9.10% |
13% |
|
Hyderabad |
26.60% |
20% |
|
Pune |
11.75% |
11% |
|
Kolkata |
17.90% |
17% |
|
PAN India |
16.30% |
14% |
Source: ANAROCK Research & Advisory
In MMR, the average monthly rent of a Grade A office space is approx.
INR 143 per sq. ft., while a green-certified building leases out at approx. INR
177 per sq. ft. (24% higher). In Chennai, the average office rent in
green-certified buildings commands a 16% premium over regular Grade A office
spaces.
In Kolkata, the monthly green vs. non-green rental gap is narrowest at
just 4%. The average monthly rent in a regular Grade A office space is approx.
INR 62 per sq. ft. in H1 2025, while green-certified buildings lease out at
approx. INR 64.5 per sq. ft.
Despite the premium rents, green-certified office spaces have lower
vacancies at 14% across the top cities combined, against a 16.30% vacancy rate
in non-green certified buildings. In MMR, the vacancy in green-certified office
buildings is just 8%, in contrast to the 15.10% vacancy in non-green Grade A
stock.
Chennai is the only city where vacancy levels in green-certified
buildings (13%) is higher than in regular Grade A office stock (9.10%).
“The surging popularity of green office buildings across India is not
merely a passing trend, but a strategic imperative in line with the nation’s
bold climate ambitions,” says Puri. “India has committed to achieving net-zero
emissions by 2070, and to expand its non-fossil energy capacity to 500GW by
2030. Green office buildings are a major link in this equation. As India
grapples with escalating urban pollution and environmental pressures, both
developers and businesses must take responsibility for championing sustainable
choices in the built environment.”
Moreover, with multinational corporations increasingly insisting on
certified eco-friendly workspaces as a key criterion for their operations,
prioritizing green buildings is crucial for India to remain globally
competitive and attract high-value international occupiers. By increasingly
embracing sustainable office infrastructure, India advances both its
environmental commitments and its standing as a destination for responsible
global business.
