India's green building market to reach US$ 85 billion by FY32: Equirus Capital
- IBEF
- October 28, 2025
India’s green building market is projected to grow at a compound annual growth rate (CAGR) of 10.50% to reach Rs. 7,46,895 crore (US$ 85 billion) by FY32, according to Equirus Capital. The report attributes this expansion to rising investor and tenant demand for certified sustainable spaces amid limited supply. Between 2020 and H1FY25, the supply of certified green spaces entering the market was nearly three times higher than that of non-certified properties, while absorption in certified buildings was 1.75 times greater. The study highlighted that certified buildings offer lower operating costs, higher returns, and stronger brand and occupier value, reflecting a growing shift toward sustainable real estate across major Indian cities.
Equirus Capital cited several examples illustrating the financial and operational benefits of green buildings. In Bengaluru, IGBC Platinum-certified luxury residences achieved a 12% resale premium. In comparison, a Leadership in Energy and Environmental Design (LEED) Gold-certified office complex in Gurugram recorded 18% higher rents and 10% lower vacancy rates. Developers such as Brigade Group, DLF, and Ajmera Realty are prioritising sustainable construction, with projects like DLF’s The Crest and Ajmera Treon achieving top-tier certifications. Globally, India ranks third for LEED-certified spaces, supported by its climate commitment announced by Prime Minister Mr. Narendra Modi at COP26 to achieve net-zero emissions by 2070 and reduce carbon emissions by 50% by 2030.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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