Mumbai, 25 February (IANS). Due to a sharp increase in demand for certified green building, there is a major change towards sustainability in the country’s commercial real estate sector.
An important part of the grade A office space is now made up of green-certified properties, where tenants live and they are giving priority to environmental compliance and energy efficiency.
According to a Crisil report, GCC and IT/IT-Ineble Service (ITES) companies, which are about 50–60 percent of the net office leasing, are leading this major change.
These firms are actively looking for environmentally friendly office space to coordinate with their environment, social and governance (ESG) commitments.
In turn, developers are focusing on the construction of a sustainable commercial property to attract tenants and maintain high occupancy levels.
The supply side of commercial real estate is also reconciling with this trend. The study conducted by Crisil ratings indicates that almost all office spaces in their sample sets are expected to be green-certified.
The report states that this change reflects the increasing recognition of stability in the real estate sector.
However, making green building requires more initial investment, but its long -term benefits are higher than the cost.
Developers are integrating energy-efficient systems such as LED lighting, advance heating and cooling solution and water conservation technology.
These features not only reduce operating expenditure, but also increase the overall value of the property.
Studies have shown that green-certified buildings can save up to 30 percent energy and 11 percent water saving compared to traditional buildings.
Gautam Shahi, director of Crisil Ratings Gautam Shahi said, “Green building provides better experience and long-term cost savings to tenants with low energy consumption and water use due to integration of energy-efficient techniques and sustainable material.
He said that this would reduce utility expenses, resulting in saving tenants in energy cost compared to 30-35 percent compared to traditional buildings.
Investors are also playing an important role in supporting the green project.
Green-focused funds in India are still in their early stage, they have the ability to speed up the development of sustainable real estate.
These funds can provide more affordable funding options to developers, making green projects more attractive.
Additionally, developers benefit from government incentives that encourage the construction of environmentally friendly buildings.
Some states provide increased floor area ratio (FAR) and other subsidies, allowing developers to better use the available land.
-IANS
SKT/Ekde
