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If you were thinking Indian realty was lagging major-time in terms of environmental responsibility, this blurb might course correct your sceptic train of thought.
How: Per a latest
ESG report by CBRE, almost a third of the total office space across top-6 Indian cities today comprises of certified green buildings.
Are You Serious?
Pretty much. The property consultant analysed office space inventory in the top six cities (Delhi-NCR, Mumbai, Pune, Hyderabad, Bangalore and Chennai) to figure out the status of green-certified buildings.
It found that:
🍀 Certified green office space increased by 177% to 212 million sq. ft. in Q3, 2021 from less than 80 million sq. ft. back in 2011.
🍀 Sustainable office real estate has grown rapidly, and its share in the total office inventory has risen from 24% to 31% through the last 10 years.
🍀 In the 2017-21 period, there has been a 37% increase in the supply of certified green office buildings, when compared to the previous five year period of 2012-2016.
🍀 Delhi-NCR and Bengaluru together make up almost 54% of the total certified green office inventory in India.
What's Fuelling Tree Hugging CRE?
First, as ESG comes into major play, green certification has become an important metric for tenant decision making. The more sustainable a development, the more occupiers it attracts.
Second, the 3 Indian Real Estate Investment Trusts (REITs) - Embassy Office Parks, Mindspace and Brookfield India Real Estate Trust - are putting a lot of stress on the sustainability aspect of their CRE portfolio.
In One Sip: For commercial real estate (CRE), sustainable design, energy-efficient operations, and employee wellness are now the key factors being weighed by both occupiers and investors before committing to a project.
