Green Office Buildings Command Premium Rents Amid Sustainability Push

Office buildings that are green certified have a 12-14% premium in rental values over non-green properties due to high demand from MNCs, according to a report by Vestian. The report highlights the benefits for developers investing in sustainable development and the role of government policies in promoting carbon neutrality.

Green-certified office buildings command a 12-14 per cent premium in rental values over non-green properties, driven by strong demand from multinational companies, according to real estate consultant Vestian's latest report.

In its report 'India Office Market-Sustaining the Sustainability', Vestian noted that these buildings are popular among MNCs focused on becoming carbon neutral, offering amenities like improved air quality, eco-friendly design, and lower energy consumption.

Bengaluru leads with a 23-25 per cent rental premium, followed by Chennai and Hyderabad at 12-14 per cent and 13-15 per cent, respectively. Mumbai and Pune see an 8-12 per cent premium, Delhi-NCR 6-8 per cent, and Kolkata 3-4 per cent. The trend is fueled by global and government initiatives towards sustainability and decarbonization.