Green is the new gold: Eco-certified Grade-A offices lead leasing surge

Sandeep Chhillar, Founder and Chairman, Landmark Group said that in the last few years, sustainability has occupied centre stage and is now at the heart of every serious leasing decision.

“Across India, and particularly in NCR, we are witnessing a clear preference for greener and healthier workplaces. Regulations or climate goals do not just drive this, but by what occupiers—especially global players—are actively demanding. As developers, it puts the onus on us to build smarter from the start. However, challenges such as material costs remain, and not every tenant can absorb the premium,” he said.

Why do green spaces lease better?

Corporates are increasingly adopting sustainable and green office spaces across the globe. Green buildings are not just greener, rather they are smarter investments.

According to data from ANAROCK, green commercial spaces deliver up to 24 percent higher rentals. Green-certified offices command more premiums – for instance, Rs 177 per sq ft per month vs Rs 143 per sq ft per month for a conventional space in Mumbai.

Despite the premium rents, green-certified office spaces have lower vacancies at 14 percent across the top cities combined, against a 16.3 percent vacancy rate in non-green certified buildings.

Data showed that in H1 2025 alone, 74 percent of all office space leased in the top seven cities was in green-certified buildings, nearly 20 million square feet of absorption. Bengaluru led decisively with 80 percent of its leasing accounted for by green buildings.

Ishaan Singh, Director at AIPL, said that global occupiers are seeking green certifications in new Indian office buildings, so Grade A office developers are now increasingly constructing LEED, IGBC or GRIHA certified spaces to stay in sync with the demand.

“Premium Grade A+ offices, especially in micro-markets like Gurugram’s Golf Course Extension Road — Sectors 62, 65, and 66 — are commanding attention. Tenants view eco-efficient spaces as a powerful tool for ESG compliance, brand strength, and staff retention. In the evolving narrative of India’s workplace future, it is the new language of sustainability, where aspects like clean air, energy efficiency, and wellness are priorities one cannot ignore,” he said.

Developers let innovation reign

This surge in demand for green office spaces signals a tectonic shift in how India builds offices; real estate experts say sustainability is no longer optional, but a strategic asset. Developers are integrating green features not just to comply but also to differentiate.

Occupiers — both global and Indian — are actively choosing green for cost savings, well-being, and carbon credentials.

Siddharth Katyal, CEO, Bhumika Group said that back in 2019, green-certified office buildings were still somewhat rare but in 2025, such spaces have taken over a huge chunk of the market.

“Companies—especially global ones—want energy-efficient, environmentally responsible buildings and they’re willing to pay extra for them. In the first half of 2025, around 75 percent of all leasing happened in green buildings. In places like Bengaluru and NCR, developers are already responding. They are building greener but there is still the issue of keeping costs in check while scaling up. However, despite all the challenges, the momentum is real,” he said.