80 to 85 per cent of office leasing in India to be in green spaces by 2026

Demand for eco-friendly or green office space is rising rapidly in India's major cities. According to a report by Colliers India, the share of green office space in total office leasing across the country's top seven cities will exceed 80 per cent by 2026.

As per the report, leasing in sustainable office buildings is expected to reach 60-65 million square feet in 2026, which will account for 80-85 per cent of total office leasing. This trend is steadily increasing, as this share was 74 per cent in 2023 and rose to 76 per cent in 2025. These figures indicate that companies are increasingly being drawn towards buildings possessing recognised sustainability certifications.

These types of office buildings are certified under frameworks such as LEED, IGBC, and GRIHA. These buildings are designed to improve resource efficiency, reduce environmental impact, and enhance workplace quality. LEED (Leadership in Energy and Environmental Design), IGBC (Indian Green Building Council), and GRIHA (Green Rating for Integrated Habitat Assessment) are well-known green building certification systems. These systems evaluate buildings on criteria such as energy efficiency, water conservation, resource usage, and environmental impact, promoting sustainable construction and operations.

According to the report's estimates, sustainable buildings will account for 75-80 per cent of new office supply in 2026, adding 45-50 million square feet of space. In the next two to three years, the total stock of such buildings could increase from the current 600-650 million square feet to approximately 800 million square feet. According to a Business Standard report, green-certified office stock is expected to reach approximately 636 million square feet by the end of 2026, accounting for nearly 70 per cent of Grade A office inventory.

Furthermore, it is expected that nearly three-fourths of the total office space demand during 2023-2026 will be concentrated in such sustainable buildings. In the top seven office markets, out of a total leasing of 275 million square feet during this period, it is estimated that approximately 210 million square feet of leasing will occur in sustainable properties.

Speaking of cities, Bengaluru leads in the leasing volume of sustainable office buildings. During 2023-2026, 59 million square feet of space has been taken here, which is 28 per cent of the total leasing in the top seven markets. On the other hand, the highest share of demand for such properties was recorded in Delhi NCR, where 85-90 per cent of total office leasing is concentrated in sustainable buildings. Hyderabad ranks second with a share of 80-85 per cent.

The report mentions that technology companies are the largest drivers of this trend. The share of tech companies in total leasing of sustainable office buildings is 30-35 per cent. Notably, nearly 80 per cent of tenants in the technology sector prefer properties with certifications such as LEED and GRIHA.