In today’s evolving real estate landscape, sustainability is emerging as the new premium, reshaping buyer preferences and investment strategies.
Recent reports by CBRE Group and Xynteo shed light on the growing significance of green-certified properties, highlighting a notable uptick in demand and willingness to pay higher premiums for sustainable living spaces. According to CBRE’s ‘India Office Figures—Q12024’ report, the prevalence of green-certified office spaces has witnessed a remarkable surge, with over half of newly completed spaces in Q1 meeting green standards. Additionally, a significant portion of leasing activity, approximately 63%, occurred in certified assets, signifying a strong market preference for sustainability. Xynteo’s March report further underscores the consumer willingness to invest in green buildings, revealing that residential buyers are ready to pay a 5% to 10% premium for sustainable homes, while office occupiers are willing to shell out over 15% extra for green office spaces, and up to 50% more for net-zero buildings. Corporate occupiers, in particular, are driving the demand for green office spaces, motivated by energy savings and sustainability goals. Over 85% of them prioritise leasing green buildings, with 74% willing to pay higher premiums for lower emission structures. Notably, 42% of Grade A office stock in India’s top seven cities is already green-certified.
The allure of green buildings extends beyond mere environmental consciousness, encompassing health and well-being considerations. Urban dwellers, fatigued by the challenges of city living, seek habitats that offer a superior quality of life. Consequently, there’s a growing willingness among buyers, especially in the 35-45 age group, to invest in green initiatives that promise enhanced well-being. While Bengaluru leads the pack with the largest stock of green-certified buildings, other cities like Delhi NCR, Hyderabad, Mumbai, Chennai, and Pune are also witnessing a surge in sustainable developments. Moreover, Tier 2 and Tier 3 cities are not far behind, indicating a widespread shift towards modern lifestyles and eco-friendly living spaces. In essence, sustainability has become a defining feature of India’s real estate narrative, reflecting a paradigm shift towards greener, healthier, and more resilient communities.
