With 68% of total Green Buildings, Green City Bengaluru ranks 1st in list of Green Leasing

The Colliers Report says that, the tech city Bengaluru is leading in green building adoption with 16.5 million square feet leases between January 2023 and July 2024 totaling to 68% of total leasing in the city. The report also noted that, the engineering and manufacturing firms are driving this trend in the city and show a strong preference for these sustainable spaces.

In the city, the green leasing has been increased by 22.85% year-on-year (YoY) to 12.9 msft in Q2 FY24 from 10.5 msft in the corresponding quarter preceding year. 

The Managing Director, Office services, India, Colliers, Arpit Mehrotra expressed, “Over the last few quarters, developers, investors & occupiers in the office market have increasingly embraced the adoption of sustainable elements in their portfolios reflecting occupiers’ strong commitment to align their sustainability goals with the broader sustainability targets of the country”.

In the 2^nd quarter of the year, 13 msft of office spaces leased in the top six cities were green-certified buildings. It depicts that, 24% YoY and accounts for 82% of the total leasing activity during the quarter.

In light of the increasing demand, developers are updating older office buildings and incorporating sustainable elements into their designs and constructions, noted Vimal Nadar, Senior Director and Head of Research at Colliers India.

He mentioned that around 300-350 million square feet of commercial properties over a decade old could be refurbished in the coming years.

Since January 2023, green buildings have represented 78 % of all office space leases. Over the next two to three years, Grade A green office space is projected to exceed 600 million square feet.