Green Building Market in India Expected to Grow at 10.5% To $85B by FY32: Equirus Capital

Mumbai, October 27, 2025: The Green Building Market in India will grow at 10.5 per cent compound annual growth rate (CAGR) till FY32 to reach an opportunity size of $85 billion, Mumbai based full-service investment banking firm Equirus Capital has said in a press note. With 91,557, 465 of square footage over 370 projects, India has retained the third spot globally in LEED certifications for Green Buildings, behind the Chinese mainland and Canada.

Over the past 5.5 years, certified supply entering the market was three times 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 about 6 per cent, intensifying competition for green spaces.

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

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