NEW DELHI, India — India’s green building sector is set for rapid expansion, projected to grow at a compound annual rate of 10.5 percent and reach an estimated $85 billion by fiscal year 2032, according to a report released Monday by investment banking firm Equirus Capital.
The report attributes the surge in demand for certified green spaces to a combination of investor enthusiasm, tenant preference, and tightening supply in major urban markets. Over the past five and a half years, certified commercial supply has been three times higher than non-certified space, while absorption rates have been roughly 1.75 times greater—highlighting a strong market bias toward sustainability-certified buildings.
Between 2020 and the first half of 2025, leasing activity in certified properties exceeded new certified supply by 6 percent, reflecting mounting competition among occupiers for high-quality, environmentally sustainable spaces. India has maintained its global ranking as the world’s third-largest market for LEED-certified buildings, Equirus Capital said.
The firm noted that green-certified developments consistently deliver superior financial returns, lower operating costs, and greater asset value. Such properties command a 7 to 14 percent premium in both sale prices and rental rates, while consuming 30 to 50 percent less energy and 20 to 30 percent less water than conventional buildings.
In Bengaluru, IGBC Platinum-certified luxury residences have achieved resale premiums of about 12 percent over nearby projects, while a LEED Gold office complex in Gurugram reported 18 percent higher rental values and 10 percent lower vacancy rates. One of Asia’s largest LEED Platinum campuses, located in Mysuru, has reduced operational costs by approximately Rs 6 crore per year, significantly boosting long-term asset valuation.
Globally, the report pointed out, green-certified real estate commands clear market advantages. In the United States, LEED-certified offices achieve 8 to 10 percent higher rents, while Singapore’s BCA Green Mark-certified assets trade around 15 percent faster than non-certified properties. (Source: IANS)
