· Leasing in green assets likely to reach a record high of over 80% in 2026 across top 7 office markets
· Delhi NCR leads with more than 85% of office demand concentrated in green assets over the last 3-4 years
· Technology firms drive more than 30% of conventional office space uptake in green assets
· 70% of office stock is currently green-certified, with Bengaluru & Delhi NCR cumulatively holding nearly half of the current green assets
· Majority of the upcoming supply is likely to be sustainable from the outset, expanding green office stock to around 800 msf in the next 2-3 years
Bengaluru, 5th November 2026: Occupiers’ preference for sustainable workspaces continue to gain prominence across key markets, with green certification becoming a ‘hygiene factor’ rather than a differentiator in India’s office market. Office developments certified under recognized sustainability frameworks such as LEED, IGBC, GRIHA etc. (referred as “Green assets”) are increasingly shaping occupiers’ real estate strategies across India. Designed for greater resource efficiency and lower environmental impact, these buildings also offer enhanced workplace quality.
Leasing in green assets is projected to reach 60-65 million sq ft across the top seven cities in 2026, increasing its share in overall leasing to over 80% from 74% in 2023. This trend highlights the growing integration of ESG priorities into corporate real estate strategies and expansion plans. It also reflects increased corporate awareness of energy efficiency, carbon emissions and employee well-being, reinforcing the role of sustainable built environments in advancing broader climate and sustainability commitments.
Leasing trends in green assets (2023 – 2026 E)
|
Overall leasing (mn sq ft) |
Leasing in green assets (mn sq ft) |
Share of leasing in green assets (%) |
|
|
2023 |
59.1 |
43.6 |
74% |
|
2024 |
67.2 |
50.0 |
74% |
|
2025 |
71.5 |
54.5 |
76% |
|
2026 E |
75-80 |
60-65 |
80-85% |
|
2027 F |
80-85 |
65-70 |
80-85% |
Source: Colliers
Notes: Data pertains to Grade A buildings only | Gross leasing does not include lease renewals, pre-commitments, and deals where only a letter of Intent has been signed | Top 7 cities include Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, and Pune | 2026 E figures are full-year estimates | 2027 F is forecasted
Bengaluru leads in green asset leasing in terms of volume, while Delhi NCR commands the highest share of leasing in green assets
During 2023-2026, three-fourths of the overall office space demand is likely to be concentrated in green assets, underscoring strong occupier preference for sustainable spaces. At nearly 60 million sq ft of cumulative space uptake in green-certified developments since 2023, Bengaluru leads green asset leasing with an estimated share of 28% across the top 7 office markets of the country.
Delhi NCR and Hyderabad have also emerged as frontrunners in sustainable development, with green assets accounting for over 85% of overall leasing in Delhi NCR and 80–85% in Hyderabad over the past 3–4 years. This underscores the growing importance of sustainability in occupiers’ real estate decision-making, especially in these cities.
City-wise leasing trends in green assets (2023 – 2026 E)
|
Overall leasing (mn sq ft) |
Leasing in green assets (mn sq ft) |
Share of leasing in green assets (%) |
|
|
Bengaluru |
82 |
59 |
70-75% |
|
Chennai |
36 |
27 |
70-75% |
|
Delhi NCR |
44 |
38 |
85-90% |
|
Hyderabad |
43 |
36 |
80-85% |
|
Kolkata |
4 |
3 |
75-80% |
|
Mumbai |
37 |
27 |
70-75% |
|
Pune |
29 |
20 |
70-75% |
|
Total |
~275 |
~210 |
75-80% |
Source: Colliers
Notes: Data pertains to Grade A buildings only | Gross leasing does not include lease renewals, pre-commitments and deals where only a letter of Intent has been signed | 2026 E figures are full-year estimates | All figures represent cumulative total for 2023–2026 E and are rounded to the nearest decimal
Tech firms lead leasing in green assets, account for >30% of conventional space uptake
Leasing trends in green assets highlight increasing adoption of sustainable workspaces across various sectors. Technology sector leads this trend, accounting for more than 30% of overall leasing in green assets, followed by the BFSI and Engineering & Manufacturing sectors. Notably, nearly 80% of occupiers within the Technology sector prefer having a footprint in properties which have been accredited with leading certifications such as LEED, GRIHA, etc.
Sector-wise leasing trends in green assets (2023 – 2026 E)
|
Overall leasing (mn sq ft) |
Leasing in green assets (mn sq ft) |
Share of sector’s leasing in green assets (%) |
Share of sector in overall green asset leasing (%) |
|
| Technology |
74 |
59 |
75-80% |
30-35% |
| BFSI |
46 |
36 |
70-75% |
20-25% |
| Engineering & Manufacturing |
40 |
32 |
80-85% |
15-20% |
| Consulting |
20 |
15 |
70-75% |
5-10% |
| Healthcare |
15 |
13 |
80-85% |
5-10% |
| Others* |
31 |
21 |
65-70% |
10-15% |
| Conventional Space (A) |
226 |
176 |
75-80% |
100% |
|
|
||||
| Flex Space (B) |
49 |
34 |
65-70% |
|
|
|
||||
| Total (A+B) = C |
~275.0 |
~210.0 |
75-80% |
|
Source: Colliers
Notes: Data pertains to Grade A buildings only | Top 7 cities include Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, and Pune | Gross leasing does not include lease renewals, pre-commitments and deals where only a letter of Intent has been signed | *Others include e-commerce, consumables, etc. | 2026 E figures are full-year estimates | All figures represent cumulative total for 2023–2026 E and are rounded to the nearest decimal
“The ability to deliver higher portfolio valuations, improved rentals, and stronger occupancy levels continues to strengthen the case for green assets amongst 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 3-4 years. Interestingly, technology firms have emerged as the largest occupiers of green assets, driving sustainability-led workplace strategies. Going forward, 80-90% of occupiers across sectors are likely to align their corporate real estate strategies with broader ESG goals through space uptake in green assets,” says Arpit Mehrotra, Managing Director, Office Services, Colliers India.
Around 70% of the Grade A office stock in India is currently green-certified
As occupier preferences increasingly gravitate towards sustainable workplaces, the stock of green assets is set for substantial growth. By 2026 end, nearly 70% of Grade A office inventory across India’s top seven cities is expected to be green-certified. Notably, Bengaluru and Delhi NCR are likely to reaffirm their prominence as key hubs of sustainable office development, together accounting for nearly half of the country’s green assets by 2026.
Interestingly, green assets are expected to account for 75-80% of new supply and reach 45-50 million sq ft during 2026, highlighting the increasing dominance of sustainable developments in the supply pipeline. Over the next two to three years, most of the upcoming supply across the top seven cities is expected to be green-certified, taking the total green stock close to the 800 million sq ft mark, up from 600-650 million sq ft at present.
Trends in new supply of green assets (2023 – 2026 E)
|
|
Stock |
Supply |
||||
|
Total stock (mn sq ft) |
Green-certified stock (mn sq ft) |
Green penetration (%) |
Total new supply (mn sq ft) |
Green-certified supply (mn sq ft) |
Share of green supply in overall supply (%) |
|
|
2023 |
735.5 |
421.0 |
57% |
51.0 |
41.8 |
82% |
|
2024 |
787.6 |
502.5 |
64% |
54.1 |
35.5 |
66% |
|
2025 |
847.1 |
574.1 |
68% |
56.5 |
42.3 |
75% |
|
2026 E |
~908 |
~636 |
~70% |
60-65 |
45-50 |
75-80% |
|
2027 F |
~970 |
~690 |
~71% |
60-65 |
50-55 |
80-85% |
Source: Colliers
Notes: Data pertains to Grade A buildings only | Top 7 cities include Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, and Pune | 2026 E figures are full-year estimates | 2027 F is forecasted | Stock is typically revised periodically to reflect updated inventory of Grade A buildings
“Growing adoption of sustainable elements in workspaces across occupier segments is encouraging developers to align new offerings with evolving occupier preferences. At the same time, over 450 million sq ft of existing office stock is more than a decade old and may warrant significant upgrades, creating a sizeable opportunity for retrofitting. Most redeveloped assets are expected to obtain green certifications, complementing the upcoming development pipeline and accelerating green penetration across key markets. Resultantly, green assets could account for nearly three-fourths of the country’s office inventory by 2030,” says Vimal Nadar, National Director and Head of Research, Colliers India.
Beyond sustainability benefits, green buildings enhance operational efficiency, workplace quality, and employee well-being, ultimately supporting higher productivity and business performance. Importantly, as developers and occupiers increasingly align their real estate decisions with ESG-driven strategies, green assets will continue to gain prominence as the preferred workspace choice.
