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Green-certified office spaces surge 65% in top 7 cities since 2019: Report

India is witnessing a growing shift towards environmentally sustainable office buildings. A report from real estate firm Anarock Research shows a 65% increase in green office buildings in the top seven cities since 2019. The seven cities quoted in the report are Bengaluru, Mumbai, Delhi-NCR, Hyderabad, Pune, Chennai, and Kolkata. As of the first half of 2025, these cities had a combined office space of approximately 530 million square feet with green certifications, up from 322 million square feet in 2019. This shows that nearly 65% of all high-grade office buildings are now certified as environmentally sustainable. Bengaluru leads the way Bengaluru tops the list with the highest share of green buildings. Of its total 223 million square feet of top-grade office space, about 73%, or 163 million square feet, is green certified. The city also has the largest green office stock overall, accounting for nearly a third of all green-certified office space across the seven cities. Delhi-NCR comes in second, and Hyderabad picks up the third spot, each with over 60% of their top-grade offices being green. Kolkata has the least, with just 17.4 million square feet, or about 3%, of the total green stock. What is Green-Certified Office Space? Green-certified office buildings are structures designed or upgraded to reduce their environmental impact. They follow standards set by certification bodies such as LEED (Leadership in Energy and Environmental Design), IGBC (Indian Green Building Council), or GRIHA (Green Rating for Integrated Habitat Assessment). These buildings often feature better energy efficiency, water conservation, and indoor air quality. Demand rising despite higher costs More than 74% of all office space leased in the first half of 2025 was in green-certified buildings, signalling strong demand despite higher rents. These buildings typically command up to 24% higher rent than non-certified ones. For example, in Mumbai, the average monthly rent in a green-certified office is ₹177 per square foot, compared to ₹143 for regular buildings. Even with the premium, green buildings have lower vacancy rates, averaging 14% compared to 16.3% in regular office buildings. In cities like Mumbai, the difference is stark: only 8% of green-certified offices remain unoccupied versus 15.1% for others. An exception is Chennai, where green offices have a slightly higher vacancy rate (13%) than conventional ones (9.1%). Why the shift matters The push for greener buildings is being driven by both government climate commitments and tenant demand, especially from multinational corporations and global capability centres (GCCs), which increasingly require sustainable workspaces. Experts say the commercial real estate sector is leading India's sustainability movement, even ahead of residential real estate. Green buildings support India's goal of reaching net-zero carbon emissions by 2070 and expanding clean energy use. '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,' said Anuj Puri, Chairman, Anarock Group.