India saw a 37% increase in the availability of green real estate assets or buildings that are ESG (environmental, social, governance) compliant in the last five years, indicating an increase in awareness among the Indian real estate sector for imbibing sustainability in its assets, according to a new report by real estate consulting firm CBRE South Asia.
“The past five years have seen a pronounced push towards green buildings; the period saw a 37% increase in the supply of certified buildings, with the addition of — 78 million sq. ft. of certified stock, compared with the previous five years (2012-2016),” the report ‘Indian Real Estate’s ESG Landscape and its Progress to a Sustainable Future”, stated.
Over the past decade, green real estate assets across top six cities in India — NCR, Mumbai, Pune, Hyderabad, Bangalore and Chennai, grew tremendously, with their share in the total office stock increasing from 24% in 2011 to 31% in 2021. Certified stock also increased substantially, growing at a CAGR of 10.7%, compared to 7.7% for the overall stock, since 2011, it added.
The report further added that NCR and Bangalore together account for about 54% of the total certified office stock of India. While NCR and Hyderabad lead the fray in terms of the share of certified buildings in their respective total stock, with a 44% share each; followed by Chennai at 37%. Meanwhile, Mumbai (16%) and Pune (15%) have a significant potential to improve their share on this parameter.
“Convergence of global challenges has heightened focus on the ESG issues and has put a spotlight on corporate real estate (CRE) leaders' purpose and mission,” Gurjot Bhatia, Managing Director — Project Management, CBRE India, Middle East and North Africa, said.
