Green Offices Take Over: Eco-Friendly Leasing to Hit 80% by 2026
Indian companies are shifting to eco-friendly offices. Green leasing is set to hit 80% by 2026, led by tech firms and Delhi NCR.
The landscape of corporate India is undergoing a massive green transformation. Companies are increasingly ditching traditional workspaces in favor of eco-friendly offices, a trend that is expected to dominate the real estate market. According to a recent report by Colliers India, green leasing in India is projected to cross the 80 per cent mark by 2026 across the country's top seven cities.
The Surge in Sustainable Workspaces
The shift toward sustainability is not just a trend but a rapidly growing mandate for modern businesses. The report indicates that leasing in sustainable office buildings is expected to reach between 60 and 65 million square feet by 2026, representing 80-85 per cent of all office leasing. This marks a steady climb from 74 per cent in 2023 and 76 per cent in 2025.
This movement is supported by a surge in new supply. Sustainable buildings are estimated to make up 75-80 per cent of new office supply in 2026, adding another 45-50 million square feet to the market. In the next two to three years, the total stock of green buildings could soar to nearly 800 million square feet, up from the current 600-650 million square feet.
What Makes an Office 'Green'?
Companies are prioritizing buildings that hold recognized sustainability certifications. These frameworks ensure that the workspaces improve resource efficiency, lower environmental footprints, and offer a higher quality of life for employees. The primary certifications driving this change include:
- LEED (Leadership in Energy and Environmental Design)
- IGBC (Indian Green Building Council)
- GRIHA (Green Rating for Integrated Habitat Assessment)
These systems evaluate buildings based on critical parameters such as water conservation, energy efficiency, the way resources are utilized, and the overall impact on the environment.
City-Wise Breakdown: Who is Leading the Charge?
While the trend is national, certain cities are emerging as hubs for sustainable corporate real estate. Between 2023 and 2026, total leasing in sustainable assets across the top seven markets is estimated at 210 million square feet out of a total of 275 million square feet.
- Delhi NCR: This region holds the highest share of demand, with a staggering 85-90 per cent of overall office leasing concentrated in sustainable buildings.
- Bengaluru: In terms of sheer volume, Bengaluru leads the way, accounting for 59 million square feet of space uptake—roughly 28 per cent of the total across the top seven markets.
- Hyderabad: Following closely, Hyderabad shows a strong preference with a share of 80-85 per cent.
The Industry Drivers: Tech and Finance
The push for green offices is being powered by specific sectors that prioritize ESG (Environmental, Social, and Governance) goals. Technology companies are the primary engines of this growth, contributing 30-35 per cent of total leasing in sustainable buildings. Remarkably, nearly 80 per cent of occupiers in the tech sector specifically seek properties with LEED or GRIHA certifications.
Other significant contributors include:
- BFSI (Banking, Financial Services, and Insurance): Accounting for 20-25 per cent of sustainable leasing.
- Engineering and Manufacturing: Contributing 15-20 per cent of the total leasing in eco-friendly assets.