India’s green building market is poised for robust expansion, projected to grow at a compound annual growth rate (CAGR) of 10.5% to reach an opportunity size of $85 billion by FY32, according to a new report by Mumbai-based investment bank Equirus Capital.

The growth is being driven by rising occupier demand, investor focus on sustainability, and tightening supply of certified spaces across key real estate segments.

Certified Green Spaces Demand Outpacing Supply, driven by Occupiers Preference

Over the past 5.5 years, certified supply entering the market was 3X higher than non-certified. During this period, absorption in certified spaces was ~1.75X that of non-certified, reflecting occupiers’ clear preference. Between 2020 and H1 2025, leasing in certified spaces outpaced new certified supply by ~6%, intensifying competition for green spaces.

Benefits of green buildings

Certified buildings deliver stronger financial returns, lower operating costs, and enhanced brand and occupier value across markets. IGBC Platinum-certified luxury residences commanded a 12% premium in resale value compared to nearby conventional projects in Bengaluru. LEED Gold-certified office complex reported 18% higher rental values and 10% lower vacancy rates than peers in Gurugram.

One of the largest LEED Platinum-certified campuses in Asia reduced operational costs by Rs 6 crore annually, improving long-term valuation in Mysuru. US Market Green offices fetch 8–10% higher rents (World Green Building Council, 2023). Singapore BCA Green Mark-certified assets trade 15% faster.