Saturday, July 13, 2024

Sustainable practice in the realty sector creating new-age office space

Sustainable practice in the realty sector creating new-age workspaces; developers putting great emphasis on green buildings

The office space sector continues to evolve embracing new and innovative trends. Amongst key trends, sustainability has emerged as the need of the hour as the sector is witnessing a considerable rise in green buildings. According to a recent report by CBRE and CII titled ‘Indian Real Estate: Taking Giant Strides – 2023 Mid-Year Outlook,’ there has been a 36 percent increase in green-certified office buildings in the top six metro cities in the last three and half years.

The green-certified office space stock stands at 342 million square feet in June 2023 from 251 million square feet in 2019. 

What is driving the increased supply of green buildings

Sustainable building features and operations are increasingly becoming developers’ and occupiers’ most sought-after building attributes.

The report attributes this growth to a growing emphasis on global and domestic Environmental, Social, and Governance (ESG) regulations, which are prompting occupiers to seek modern, premium, and sustainable office spaces. 

Real estate players have aligned their approach with the growing importance of sustainability in the sector. 

On this Aman Trehan, Executive Director, Trehan Iris, said “The real estate sector is placing a greater emphasis on sustainable practices, with more buildings receiving green certification. This trend is particularly evident in the commercial real estate sector, which includes office and retail spaces. Investors and occupiers are increasingly seeking out green-certified projects that prioritize energy efficiency and reduce carbon emissions. Corporations and brands are eager to secure space in these environmentally-friendly buildings.”

He added, “The trend towards environmentally friendly workspaces is becoming increasingly popular. Grade A office developers are adapting their approach to the building by incorporating features such as open areas, natural lighting, and energy-efficient practices to create a greener ambiance. We prioritize sustainability in our projects, and our office spaces are IGBC-certified green buildings. These practices are breaking away from traditional approaches to office space design, allowing for innovation and the creation of modern, cutting-edge buildings.”

Cities leading in green buildings 

The report highlighted that the certified green office stock has experienced significant growth over the past five years, achieving a CAGR of 7.1 percent. As of June 2023, Bengaluru, Delhi-NCR, and Mumbai were among the top three cities, collectively accounting for approximately 68% of the total green-certified office space stock. Bangalore leads among Indian cities in terms of green-compliant office space, comprising approximately 30% of the nationwide total. 

Following closely are Delhi-NCR with around 21% and Mumbai with about 17% of the certified office stock across India. 

Realty players’ focus on green buildings and innovative designs

Global and domestic occupiers are placing a high priority on sustainability and have made significant commitments to achieve impactful targets. Global and national mandates, including the Corporate Sustainability Reporting Directive (CSRD), Enhancement and Standardization of Climate-related Disclosures, and India’s Business Responsibility and Sustainability Reports (BRSR), push occupiers to continue leasing in next-generation, green-certified office spaces. 

The report highlighted that the certified green office stock has experienced significant growth over the past five years, achieving a CAGR of 7.1 percent. 

Kaustubh Chandra, Manager – Marketing & Leasing, Brahma Group said “In the evolving scenario of green real estate, there is an increased emphasis on green-certified buildings as they serve as a beacon of sustainability encouraging eco-conscious construction practices and energy-efficient designs. Investors and occupiers are prioritizing sustainability favoring projects that promote a green and healthy environment. According to a recent report by CBRE, green-certified office buildings have seen a massive growth of 36 percent in the top six metro cities in the last three and half years. This reflects the realty sector’s growing focus on creating green buildings.”

On their company’s focus on sustainability, she added, “We as a company, are committed to a greener future, and our upcoming project would be a GRIHA-certified green building focused on eco-sensitive zoning regulations, sustainable site planning, construction management, energy efficiency, water and solid waste management along with the use of sustainable building materials, and HVAC technology for occupant’s well-being. Besides, the project would foster a perfect balance of lifestyle, business, and sustainability.”

GRIHA, LEED, and IGBC are rating systems facilitating certification for green buildings and validating their existence. With standardized frameworks for assessing and enhancing the sustainable approach and energy efficiency of buildings and workspaces, green building ratings help reduce environmental impact and lower operating costs. Encompassing sustainable site planning, efficient construction management, energy conservation, water, and waste management, socio-economic strategies, performance monitoring, and innovation is leading to eco-friendly and economically sound work environments while aligning with global sustainability goals. 

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