By Mr. Sidharth Pansari, Managing Director, Primarc Group and President of Credai Bengal
Sustainability is no longer a choice; it is a necessity. The real estate industry, particularly commercial real estate, is undergoing a shift towards greener, more energy-efficient buildings. In Eastern India, this transition is driven by regulatory requirements, market demand, and the long-term economic benefits of sustainable development.
Green certifications such as LEED (Leadership in Energy and Environmental Design) and IGBC (Indian Green Building Council) have become key benchmarks for sustainable development. These certifications ensure buildings adhere to energy efficiency, water conservation, and reduced carbon footprint standards. Additionally, they contribute to improved indoor air quality, reduced heat island effects, and enhanced overall building performance.
According to a 2023 report by the Indian Green Building Council, India ranks among the top three countries in green building adoption. Kolkata, traditionally a market focused on affordability, is now actively embracing this trend, recognizing the long-term value it brings to commercial spaces. The city’s growing corporate sector, along with an increasing number of sustainability-conscious tenants, has led to a surge in green-certified commercial developments.
A significant driver of this adoption is the increasing awareness among developers and investors about the benefits of green buildings. Companies are now prioritizing sustainable structures to align with global ESG (Environmental, Social, and Governance) goals. Investors, too, are factoring in sustainability when evaluating real estate assets, as green buildings promise higher occupancy rates, lower operational costs, and long-term cost savings. Additionally, employees working in green-certified buildings report greater job satisfaction, further reinforcing the business case for sustainability.
For businesses, sustainability is not just about reducing environmental impact. It directly affects operational costs and employee well-being. Energy-efficient buildings consume up to 40% less electricity, reducing expenses significantly. Green workspaces also improve indoor air quality, leading to higher productivity, lower absenteeism, and better overall employee health. Features such as enhanced ventilation, optimized lighting, and the use of non-toxic materials contribute to a healthier work environment, which in turn boosts morale and efficiency.
Moreover, companies that lease or own green-certified offices benefit from a strong brand image. Sustainability-conscious clients and partners are more likely to engage with businesses that demonstrate environmental responsibility. This shift is particularly evident in the IT and BFSI sectors, where global corporations have strict sustainability mandates for their real estate choices. The integration of renewable energy sources, water-efficient plumbing systems, and smart energy management technologies further enhances the appeal of green commercial properties.
One of the biggest misconceptions about green buildings is that they are expensive to construct and maintain. However, studies indicate that while initial costs might be slightly higher, the long-term savings on energy and water consumption significantly outweigh the upfront investment. Smart building technologies, such as automated energy management systems, motion-sensor lighting, and high-performance insulation, help optimize resource utilization and ensure operational efficiency.
A 2022 report by the World Green Building Council found that businesses operating in green-certified offices experienced an average of 20% lower operational costs. Additionally, properties with green certifications tend to have higher asset values and rental yields, making them a wise investment choice for developers and investors alike. As demand continues to grow, real estate firms are now incorporating sustainability features from the early design stages, ensuring maximum efficiency and long-term viability.
Government incentives for green buildings are also shaping the market. The West Bengal government has introduced tax benefits for projects that meet green certification standards and Floor Area Ratio (FAR) benefits up to 10%. Additionally, corporate occupiers, particularly in IT and BFSI sectors, now prioritize leasing spaces in certified green buildings to meet their ESG (Environmental, Social, and Governance) goals. These incentives not only encourage new sustainable developments but also promote the retrofitting of older buildings to meet green standards.
In addition to state-level policies, national initiatives such as the Energy Conservation Building Code (ECBC) and incentives for solar power adoption have further encouraged developers to adopt sustainable practices. The integration of solar panels, rainwater harvesting systems, and energy-efficient HVAC systems has become increasingly common in modern commercial developments. Some properties are even implementing net-zero energy strategies, where the total energy consumed is equal to the energy generated on-site.
The future of commercial real estate in Eastern India is intrinsically linked with sustainability. The demand for green-certified buildings will continue to rise, driven by regulatory mandates, cost efficiencies, and changing corporate preferences. With increasing urbanization, Kolkata and other cities in Eastern India must prioritize sustainable development to combat environmental challenges. The incorporation of green building technologies such as smart grids, net-zero energy designs, and rainwater harvesting systems will play a vital role in shaping the future of real estate. As awareness grows, developers, investors, and tenants alike will recognize the importance of sustainable commercial spaces in fostering a healthier and more resilient built environment. The coming decade will witness a paradigm shift where sustainability will no longer be an added feature but a fundamental requirement for commercial real estate development.
As companies become more conscious of their carbon footprint and operational efficiencies, the preference for sustainable commercial spaces will become a dominant trend. The evolution of green real estate in Eastern India will not only reshape urban landscapes but also create a blueprint for sustainable growth. By integrating cutting-edge technologies and adhering to global best practices, the region can position itself as a leader in sustainable commercial real estate, ensuring a greener, healthier, and more prosperous future for all.
