Green Office Spaces to Dominate India’s Market by 2030

India’s commercial real estate sector is witnessing a significant shift towards sustainability, with green-certified office spaces gaining substantial traction. According to a recent report by Colliers India, leasing activity in environmentally certified office properties across the country’s seven major markets is expected to reach between 60 and 65 million square feet by 2026. This volume would represent 80 to 85 percent of the total office leasing during that period.

The proportion of green office spaces in overall leasing has steadily increased over recent years, rising from 74 percent in 2023 to an anticipated 76 percent in 2025. This trend reflects growing awareness among occupiers and investors about the benefits of sustainable real estate, including energy efficiency, reduced environmental impact, and enhanced workplace conditions.

Among the key urban centers, the National Capital Region (Delhi NCR) stands out with the highest share of green-certified office leasing. From 2023 through 2026, approximately 85 to 90 percent of office demand in this region is projected to focus on green assets. Meanwhile, Bengaluru leads in absolute leasing volume, accounting for nearly 59 million square feet of cumulative green-certified office space during the same timeframe.

Green buildings in India typically achieve certification through recognized frameworks such as the Leadership in Energy and Environmental Design (LEED), the Indian Green Building Council (IGBC), and the Green Rating for Integrated Habitat Assessment (GRIHA). These certifications ensure that buildings meet stringent standards for resource efficiency, waste reduction, and healthier indoor environments.

The report highlights the tenant profile in green-certified offices, noting that technology companies are the largest occupiers, comprising 30 to 35 percent of total leasing in these properties. Banking, financial services, and insurance (BFSI) firms follow with 20 to 25 percent, while engineering and manufacturing companies make up 15 to 20 percent. It is noteworthy that nearly 80 percent of technology firms prefer workplaces that have earned green certification, reflecting their commitment to sustainability and employee well-being.

Arpit Mehrotra, Managing Director for Office Services at Colliers India, commented on the growing preference for green assets: "The ability to deliver higher portfolio valuations, improved rentals, and stronger occupancy levels continues to strengthen the case for green assets among investors and developers alike. This trend is deepening across cities, with occupiers having leased more than three-fourths of their office space in green assets over the last 3 to 4 years." This statement underscores the increasing financial and operational advantages linked to sustainable office spaces.

Looking ahead, the stock of green-certified office buildings is projected to reach around 636 million square feet by the end of 2026. This would comprise nearly 70 percent of the Grade A office inventory in India, a category representing premium-quality office spaces. Over the next two to three years, the green office stock could expand further to approximately 800 million square feet, positioning green assets to represent about three-fourths of India’s total office stock by 2030.

This expansion aligns with broader global and domestic trends emphasizing environmental responsibility and energy conservation in commercial real estate. As companies increasingly prioritize sustainability in their operations and corporate social responsibility initiatives, demand for green-certified offices is expected to rise. This shift also reflects regulatory encouragement and financial incentives aimed at reducing the carbon footprint of buildings.

India’s commercial real estate market, which has been growing steadily in recent years due to rising urbanization and economic development, is adapting to meet these sustainability demands. The growing stock and leasing of green office spaces signal a maturing market that balances business needs with environmental concerns.

In summary, the rise of green-certified office assets in India is shaping the future of workplace real estate. Tenants and investors alike are recognizing the value of sustainable buildings not only for environmental reasons but also for the tangible benefits in cost savings, asset value, and tenant satisfaction. With green office spaces expected to dominate leasing activity and overall stock by the end of the decade, sustainability is becoming a defining feature of India’s commercial property landscape.