16.4 C
London
Thursday, October 6, 2022

Green buildings charge rental premiums of 13-36% as demand grows: JLL

Must read

Godrej Consumer Products expects improved consumption in the second half of this fiscal year

Godrej Consumer Products Ltd (GCPL) expects consumption to improve in the second half of the current fiscal year, mainly due to the moderation in...

Rupee drops 4 paise to 81.66 against US dollar in early trading

In the first trade, the rupee also touched ₹81.51 against the US currency. The dollar index, which measures the dollar's strength against a...

India’s service sector activity plunged to six-month low in September amid inflation, competition: PMI

For the fourteenth month in a row, the services sector witnessed a growth in production. The rebound was reportedly limited by price pressures,...

Thailand daycare center shooting leaves 31 dead

At least 31 people were killed when a gunman opened fire on a daycare center in northeastern Thailand on Thursday, police said.The shooting took...
Shreya Christinahttps://londonbusinessblog.com
Shreya has been with londonbusinessblog.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider londonbusinessblog.com team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

  • Almost 44% of the total office building stock in the top seven cities in India is green certified, says a JLL report.
  • Delhi NCR and Mumbai, which represent more than 41% of the total green certified stock in the country.
  • In green-certified IT buildings there is an average rental premium of 13%.

Nearly 44% of the total stock of office buildings in India’s seven largest cities is green certified, says a report from Jones Lang LaSalle (JLL).

Most of these green buildings are in Delhi NCR and Mumbai which represent more than 41% of the total green certified stock in the country. Most of the green building stock is owned by institutional investors and real estate investment trusts, or REITs.

The JLL report also sheds light on why green buildings are becoming popular. “Going green has its advantages. There is an average rental premium of 13% in green certified IT buildings and an average premium of 36% in non-IT buildings,” the report said.

Green buildings, also known as sustainable buildings, use sustainable materials and processes and contribute to the efficient use of natural resources such as energy and water, reduce pollution and use waste-reducing measures.

Organizations like to choose office spaces that help them reduce CO2 emissions, and this drives the demand for green buildings.

“Even in the two-year period immediately prior to the pandemic, the share of gross rental in green-certified buildings was higher at 53% and increased further to 57% during the pandemic period. This clearly outlines the larger shift underway in user preferences for sustainable, green-certified buildings,” said Radha Dhir, CEO and country head – India, JLL.

Green buildings are less likely to remain empty, more likely to receive a premium

In addition to higher rents, green buildings are also less likely to be vacant. According to Dr. Samantak Das, chief economist at JLL, vacancy rates are 3-12% lower in green buildings in prominent sub-markets. In

He says that rent premiums go up to 15-54% for green buildings, while the non-green counterparts deal with brown discount – an assessment term that describes buildings that will require maintenance investments in the future.

“In all core submarkets in the top seven cities where IT/IT SEZ projects account for a significant portion of the total A inventory, green-certified buildings have higher occupancy rates compared to non-certified counterparts,” said Das.

Overall, the majority of India’s A-shares are primarily for IT/IT SEZ usage – and this share stands at 71%. Half of this stock is green certified. For the non-IT stocks, the green penetration is much lower at 28%.

“The lower vacancy rate in this green-certified non-IT stock also underscores the impact of green certifications on users’ space decisions, more so in the case of their corporate offices that are representative of the companies’ ethos and corporate social responsibility statements. ,” he added.

The report predicts that in the next ten years, penetration levels of green certified buildings will exceed 50% in total.

ALSO SEE:
The Taste of India: American chains go desi with veg makhani burgers, tandoori tofu subs and achaari pizzas

Moody’s maintains India’s credit rating on ‘Baa3 stable’, says economy is ‘diversified with high growth potential’

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

Godrej Consumer Products expects improved consumption in the second half of this fiscal year

Godrej Consumer Products Ltd (GCPL) expects consumption to improve in the second half of the current fiscal year, mainly due to the moderation in...

Rupee drops 4 paise to 81.66 against US dollar in early trading

In the first trade, the rupee also touched ₹81.51 against the US currency. The dollar index, which measures the dollar's strength against a...

India’s service sector activity plunged to six-month low in September amid inflation, competition: PMI

For the fourteenth month in a row, the services sector witnessed a growth in production. The rebound was reportedly limited by price pressures,...

Thailand daycare center shooting leaves 31 dead

At least 31 people were killed when a gunman opened fire on a daycare center in northeastern Thailand on Thursday, police said.The shooting took...

Lightdash takes on Looker with an open source BI platform built for dbt • londonbusinessblog.com

light dash, an open source business intelligence (BI) platform that aims to challenge established incumbents like Looker, today officially launches its flagship commercial product...