India has over 10 billion square feet of green-certified commercial buildings, which sets the country towards being the world leader in sustainable construction. Businesses nowadays are more educated about their environmental influence and sustainability in workspaces. Thus, the concept of green workspaces has transitioned from being a novel idea to a new gold standard.
Now, commercial investors are looking for assets that have ESG criteria, thus changing the mindset of construction in Indian real estate for sustainable building. Other Indian cities like Pune, Bangalore and Hyderabad have already embraced green-certified workspaces, showing that such sustainable spaces are economically profitable as well as responsible.
We will focus on green buildings and their significance in commercial real estate in India in this article.
What is a Green Building and Why is it Important in India?
Green buildings are defined as the purpose, design and usage of technology to create and maintain facilities that have the least possible impact on the environment throughout their construction cycle. Life cycle assessment is used to measure a structure’s sustainability over its entire lifetime, helping to determine the overall environmental health. Compared to traditional buildings, green buildings are more eco-friendly and healthier to work in.
To resolve the problem of urbanization and the massive emission of greenhouse gases in India, green buildings are an evolutionary approach. They have the potential to balance the emission levels as well as the Indian cities’ resilience and sustainability by limiting the carbon footprint along with the consumption of non-renewable sources of energy.
Moreover, green buildings enhance India’s compliance with the SDGs (Sustainable Development Goals) and the target objectives of the Paris Climate Agreement, which makes them an integral part of the nation’s climate action plan.
What Are the Benefits of Green Buildings for Commercial Spaces?
- Energy-Efficiency
Green buildings are designed to consume less energy and reduce dependency on non-renewable energy sources. By utilizing intelligent lighting, energy saving HVAC systems and solar power, they reduce operational costs in the long run.
- Cost Savings
Initial costs for these buildings may be higher, but they reduce long-term expenses by saving in utilities, maintenance and long-lasting equipment.
- Employee Productivity
Clean air, natural lighting and better temperature control mean fewer headaches, less fatigue and better breathing, boosting employee wellness and productivity.
- Brand Value
Green-certified workspaces enhance businesses’ reputation as modern, environmentally conscious and responsible ones, attracting more like-minded clients and investors.
- Higher ROI
Green buildings are in high demand. Better rental returns, resale value, high tenant retention and ESG appeal all contribute to the higher ROI it offers.
What Are the Main Green Building Certifications in India?
- IGBC (Indian Green Building Council)
India-specific rating system by CII, tailored for different building types. Assesses energy, water, waste, indoor air quality and innovation. Offers Certified to Platinum levels.
- GRIHA (Green Rating for Integrated Habitat Assessment)
Government-endorsed certification developed by TERI. Focuses on energy, water, waste, and socio-economic impact across a building’s lifecycle.
- LEED (Leadership in Energy and Environmental Design)
Global certification by USGBC, administered by GBCI in India. Popular with multinational firms. Covers design, energy, materials and indoor environment.
- BEE Star Rating
Issued by the Bureau of Energy Efficiency (BEE), this rate buildings based on energy use per square meter.
- EDGE (Excellence in Design for Greater Efficiencies)
IFC’s fast, affordable certification for resource-efficient buildings. Tracks measurable energy, water and material savings.
- WELL Certification
Focuses on occupant health and well-being. Gaining popularity in India’s high-end commercial spaces for its emphasis on air, water, lighting, and mental wellness.
How is the Commercial Real Estate Sector Adopting Green Building Practices?
India is modernizing its commercial real estate to be more sustainable by:
- Integrating solar photovoltaic systems and harvesting rainwater.
- Monitoring energy usage through Building Management Systems (BMS).
- Designing buildings to allow natural ventilation and lighting.
- Using pre- and post-consumer stage recycled materials as well as environmentally friendly construction products.
This change is being led by IT Parks, SEZs and Co-working stations.
What Are the Current Green Building Trends in India (2025)?
- Net-Zero Energy Buildings
A net-zero energy building is a structure that generates as much energy as it consumes, using solar power and other high-efficiency technologies.
- ESG Compliance
The Environmental, Social, and Governance (ESG) guidelines have led to an increased preference from investors and tenants towards commercial buildings, thus increasing verified green structures.
- AI Powered BMS (Building Management Systems)
Optimizing energy consumption, air quality, and comfort with regard to lighting and HVAC systems is the work of AI powered Building Management Systems (BMS).
- Biophilic Design
Biophilic design involves the use of indoor plants, water features (fountains and indoor ponds), natural light and water bodies, along with sunlight to improve the psychological state and enhance the productivity of the occupants.
- Modifying Existing Structures
Older commercial buildings with poor energy performance are recently been retrofitted with green technologies to meet ESG certification requirements.
- Modular & Prefabricated Construction
Modular green buildings are eco-friendly structures manufactured off-site and assembled on-site. Their construction uses significantly less energy and generates less waste. These types of green buildings are becoming more common in commercial projects all over India.
What Are the Government Incentives for Green Buildings in India?
- Green-certified projects receive faster approvals.
- Some state governments provide property tax rebates.
- Additional FSI (Floor Space Index) in some cities.
- Lowered interest rates for greenhouse financing.
- Subsidies for energy efficiency and renewable energy projects.
What Are the Challenges of Building Green Commercial Spaces in India?
Adopting green technology in India comes with its fair share of challenges.. The high up-front costs for sustainable materials and certifications often deter many developers, particularly the small ones that do not see the long-term savings immediately. Another concern, probably more psychological, is the common representation that green buildings are only for higher-level projects, and this distinction limits acceptance on a broader scale. Additionally, we face a lack of trained professionals in green building and construction practices, in architecture, engineering, and other fields, with changing policies regarding what should count as sustainability. There is no consistency across states on green building policies, particularly on the nature and types of incentives, programs, etc. Then there are costs associated with upgrading older buildings, which have very little encouragement from banks to obtain and spend any funds needed for such ventures.
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FAQs
Q: Can green buildings help improve employee productivity and wellness?
A: Absolutely! Features such as better indoor air quality, plenty of natural light, and ergonomic designs play a significant role in boosting employee satisfaction, reducing sick days, and enhancing overall performance.
Q: What are the ROI and payback periods for green-certified buildings in India?
A: Generally, green buildings provide a payback period of about 3 to 5 years. After that, you can enjoy operational savings, a rise in asset value, and an improved brand reputation, leading to long-term benefits.
Q: What technologies are used in green commercial buildings?
A: Green commercial buildings utilize a variety of technologies, including:
- Smart lighting and HVAC systems.
- AI-driven building management systems.
- IoT-based occupancy sensors.
- Rainwater harvesting and greywater recycling.
- Renewable energy sources like solar and wind.
Q: Is green construction more expensive in India?
A: While the initial costs for green construction can be about 5–10% higher than traditional buildings, the long-term savings on energy, water, and maintenance make it a worthwhile investment. You can typically expect a payback period of around 3–5 years.
Q: Are green certifications mandatory for commercial buildings?
A: Currently, green certifications aren’t required for commercial buildings in India. However, regulatory bodies are increasingly promoting sustainable practices, and these certifications are becoming essential for tenants, investors, and developers looking to stand out.
Q: Which developers in India focus on green commercial buildings?
A: Some of the leading real estate developers championing green commercial development include:
- Godrej Properties
- Mahindra Lifespaces
- RMZ Corp
- Tata Realty
- Embassy Group
These developers often partner with IGBC or LEED-accredited consultants to ensure they meet certification standards and promote long-term sustainability.
Q: How does IGBC certification differ from GRIHA certification?
A: IGBC is all about being industry-driven and flexible, making it a great fit for private commercial projects. It also aligns nicely with global standards like LEED. On the other hand, GRIHA is backed by the government and focuses on policy, assessing sustainability throughout a project’s entire lifecycle—it’s often the go-to for public sector developments.
Q: Which Indian cities boast the most green-certified commercial buildings?
A: When it comes to green infrastructure in India, standout cities include Bengaluru, Mumbai, Delhi NCR, Hyderabad, Pune, and Chennai.