India’s green building market is experiencing steady growth. A recent report by Equirus Capital states that the sector is expected to reach USD 85 billion (approximately Rs. 7,46,895 crore) by FY32. The growth is expected at a CAGR of 10.5%, fuelled by investors and tenants looking for sustainable and energy-efficient properties.
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Between 2020 and the first half of FY25, certified green spaces entering the market were nearly three times higher than non-certified buildings. These sustainable spaces also saw 1.75 times higher absorption, highlighting a clear market preference.
Developers and occupiers are recognizing the long-term value of eco-friendly properties. Lower operating costs, improved brand image, and better occupancy rates are among the key benefits driving this shift toward green real estate.
Premium Returns on Sustainable Projects
The report highlights several examples of how certified buildings are outperforming conventional properties. In Bengaluru, IGBC Platinum-certified luxury residences earned a 12% resale premium compared to regular ones.
Similarly, a LEED Gold-certified office complex in Gurugram recorded 18% higher rental income and 10% lower vacancy rates, proving that sustainable development brings both environmental and financial rewards.
Major developers such as DLF, Brigade Group, and Ajmera Realty are actively embracing green practices. Projects like DLF’s The Crest and Ajmera Treon have achieved top-tier certifications, setting new benchmarks in sustainable construction.
India’s Global Standing in Green Development
India now ranks third globally for LEED-certified spaces, demonstrating its emerging leadership in sustainable real estate. This progress aligns with Prime Minister Narendra Modi’s climate goals, announced at COP26, where India pledged to achieve net-zero emissions by 2070 and cut carbon emissions by 50% by 2030.
As awareness and regulatory support continue to develop, green construction is expected to play a central role in shaping India’s future urban landscape.
India’s green building surge reflects a broader shift toward sustainability. With developers, investors, and policymakers aligned, the nation is paving the way for a cleaner, energy-efficient real estate future.
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