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      From Green Buildings to Growing Returns: The Rise of Sustainable Commercial Real Estate

      By SQUAREA Knowledge Hub

      Published: April 30, 2025

      Over 195,000 buildings worldwide are now LEED-certified commercial spaces – a clear signal that sustainable real estate is no longer just an industry buzzword but the future of commercial real estate (U.S. Green Building Council). Investors and businesses are rapidly shifting towards green buildings, recognising that they offer not just environmental benefits but also superior financial returns.

      With the global push for sustainability reshaping commercial spaces, India is emerging as a key market aligning with these trends. As investors and occupiers prioritise carbon-positive buildings, the focus is shifting from why sustainability matters to how it can drive long-term value. At the heart of this transformation lies a globally recognised benchmark—LEED certification. It is often the first step in signalling a building’s commitment to environmental performance and future readiness.

      What is a LEED Certification and Why it Matters

      LEED (Leadership in Energy and Environmental Design) is one of the most recognised global certification systems for eco-friendly spaces and sustainable buildings. It evaluates properties based on energy efficiency, water conservation, indoor air quality, and overall environmental impact

      In India, over 13.26 billion sq ft of commercial space is now classified as green real estate, placing the country among the global leaders in sustainable construction (Indian Green Building Council). LEED-certified buildings are proving to be a key differentiator in the market, offering:

      • Lower operational costs through reduced energy and water consumption
      • Healthier work environments with better air quality and ventilation
      • Higher asset value as demand for green-certified properties grows
      • Stronger investor and tenant preference, with corporate occupiers prioritising sustainability in leasing decisions

      However, while LEED ensures a building meets sustainability benchmarks, investors are now taking a more comprehensive approach by evaluating assets through the lens of ESG principles. Let’s take a closer look at the ESG-driven real estate investment trends.

      ESG: The New Standard in Real Estate Investment

      ESG, short for Environmental, Social and Governance is fast becoming a key metric in real estate investment decisions. Beyond certifications, investors now assess real estate sustainability, long-term operating costs, resilience, and governance frameworks before allocating capital. A recent global survey found that 70% of investors have already adopted ESG criteria in their decision-making, with another 10% planning to do so in the next three to five years (Knight Frank). This shift is driving capital towards ESG-aligned assets, which are increasingly commanding premium valuations.

      The Global Shift Toward Sustainable Development and Its Impact on India

      Major global investment firms are rapidly integrating sustainability and eco-conscious practices into their real estate portfolios. For example:

      The green commercial architecture transition is not just limited to individual buildings but is reshaping large-scale developments, including IT parks and business districts. Several large-scale IT parks and business hubs are incorporating ESG-led designs, offering cutting-edge features that redefine the workspace experience. This momentum is pushing Indian developers to align with international standards, resulting in a new wave of sustainable commercial spaces.

      India’s Expanding Green Commercial Footprint

      India’s commercial real estate sector is already witnessing an accelerated push towards sustainable development. According to Bain & Co, 90% of India-bound investments in the next five years will be influenced by ESG considerations. Moreover, ESG-focused funds in India saw a 76% jump in inflows in FY 2020–21, reaching ₹3,686 crore from ₹2,094 crore the previous year.

      Some notable projects include:

      • Mindspace Business Parks (K Raheja Corp): LEED Gold-certified commercial hubs across Mumbai, Pune, Hyderabad, and Chennai.
      • Surat Diamond Bourse (Gujarat): Achieved IGBC Platinum certification, setting new sustainability benchmarks.
      • DLF, L&T Realty, Tata Housing: Actively integrating green building frameworks into their commercial developments.

      With regulatory backing, rising corporate demand, and investor preference, India’s green commercial real estate market is expected to grow exponentially.

      Defining Features of India’s Sustainable Commercial Spaces

      As Indian developers shift towards green building technology, key sustainability features in new commercial developments include:

      • Smartscape Design: Maximising space efficiency and natural airflow.
      • Greentech Integration: Automated lighting, smart meters, and energy-efficient HVAC systems.
      • Resilient Structures: Buildings designed to withstand climate risks, ensuring operational continuity.
      • Biophilic Design: Incorporating natural elements like greenery, daylight access, and better ventilation.
      • Net-Zero Developments: New-age projects focusing on balanced carbon output and self-sufficiency.
      • Waste Management & Water Conservation: Advanced recycling systems, rainwater harvesting, and wastewater reuse solutions.

      How Sustainable Commercial Real Estate Outperforms Traditional Spaces

      The advantages of sustainable commercial properties extend beyond energy-efficient skyscrapers, they also drive long-term profitability.

      A key distinction on how green buildings drive profits compared to traditional commercial spaces includes:

      Feature Traditional Commercial Real Estate Sustainable Commercial Real Estate
      Energy Consumption High 20-50% lower
      Operational Costs Expensive maintenance Reduced costs due to efficient systems
      Tenant Demand Standard leasing demand High preference from MNCs, startups, and tech firms
      Regulatory Compliance Subject to evolving norms Already aligned with global ESG and green building standards

      Why Investing in Sustainable Commercial Real Estate Now Is a Smart Move

      Sustainability in commercial real estate is no longer just about environmental responsibility, it is a financially sound investment strategy. Green-certified and ESG-aligned properties offer:

      • Higher occupancy rates and tenant retention due to growing demand for sustainable workspaces
      • Lower operational expenses from energy-efficient and resource-optimised designs.
      • Premium asset valuation and marketability, attracting global investors.
      • Future-proof investments with compliance to evolving ESG and regulatory norms.

      At SQUAREA, we connect investors with commercial spaces designed for the future which are sustainable, high-performing, and investment-worthy. Whether you’re looking for LEED-certified properties, net-zero developments, or ESG-compliant assets, our team of dedicated experts can help you secure opportunities that deliver both impact and income.

      Let’s shape a greener, more profitable real estate landscape together!


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      5 June 2025
      The Greener the Building, the Stronger the Asset: How Sustainability is Reshaping Real Estate in India

      As climate pressures intensify and capital becomes more discerning, the real estate sector stands at a pivotal moment. No longer are sustainability credentials a value-add—they are fast becoming core to asset valuation, tenant attraction, and long-term resilience.

      This World Environment Day, the spotlight is on real estate’s role in delivering decarbonization at scale. According to the International Energy Agency’s 2024 Global Buildings Tracker, buildings now account for 37% of energy and process-related CO₂ emissions worldwide. In India, where urbanization is accelerating, this figure underscores a critical truth: real estate can either amplify the climate crisis or actively mitigate it.

      A shift is underway. What was once an ESG narrative led by compliance is now an investment imperative. The World Green Building Council’s 2024 Global Trends report reveals that green-certified buildings reduce operating costs by up to 14%, with rental premiums of 6–10% in Indian metros. Institutional investors are taking note. CBRE India’s 2024 Green Real Estate Outlook reports that 72% of investors now factor ESG ratings into acquisition strategies, and 63% of occupiers require green certifications for office space selection.

      In Pune, one of India’s fastest-growing real estate markets, this transition is visible across asset classes. Premium residential projects like YOO Pune and YOO Villas, developed in collaboration with global design house YOO, have integrated sustainability into their architectural language. From passive solar design and energy-efficient systems to 5-acre rainforest and rainwater harvesting, these developments aren’t just aesthetic statements—they’re engineered for performance.

      On the commercial front, buildings like EON IT Park, World Trade Center Pune, and Amanora Chambers have embraced LEED and IGBC ratings, focusing on air quality, daylight access, and reduced water usage. This isn’t just about being green—it’s about future-proofing assets for institutional-grade returns.

      Even in new commercial development, the sustainability playbook is being executed with intent. Upcoming Grade-A developments, including Omicron Business Landmarks Kharadi NX, are integrating features like high-efficiency HVAC systems, daylight-responsive lighting, and climate-conscious landscaping. These aren’t superficial add-ons—they’re fundamental to asset longevity and lifecycle value.

      What’s also changing is the role of landscape. No longer ornamental, green spaces are being engineered for thermal comfort, carbon sequestration, and even stormwater management. Think shaded public courts, rooftop rain gardens, vertical green walls—solutions that serve both people and planet, while also reducing long-term energy intensity.

      The financial rationale for all this is clear. According to Knight Frank India’s 2024 ESG Report, commercial green buildings in India experience lower vacancy risks and up to 7% higher yields than non-certified assets. With REITs and institutional funds allocating more capital toward ESG-aligned portfolios, green buildings are quickly becoming the safer, smarter bet.

      At the intersection of real estate and climate action, sustainability is now a proxy for value. It de-risks assets, meets rising regulatory standards, and aligns with stakeholder expectations—from tenants and investors to city planners and financiers.

      As the built environment redefines its role in climate strategy, developers who integrate sustainability from day one aren’t just responding to a trend—they’re shaping the blueprint for future cities.

      4 June 2025
      Work Meets Wellness: Rise of Health-focused Commercial Projects

      India’s commercial real estate sector is undergoing a quiet but powerful shift. While demand for Grade-A buildings, sustainable supply, and infrastructure-led locations continues, there’s a parallel priority that is becoming non-negotiable - Wellness. No longer a soft perk or a branding exercise, wellness is fast becoming the core lens through which commercial spaces are being designed, leased, and marketed.

      As India’s commercial real estate market races towards a projected size of USD 106.05 billion by 2029, growing at a CAGR of 21.10% (Puravankara), this rising wave of wellness-centric workplaces signals not just a trend, but a transformation in how occupiers and investors define long-term value. To understand the emergence of wellness as a strategic priority, it is imperative to first identify the market forces and occupier expectations driving this shift.

      What’s Driving This Transformation?

      The shift toward wellness-driven commercial spaces is not incidental. It is anchored in three powerful macro and behavioural changes.

      • Talent retention has become workspace-led: Post-pandemic realities have recalibrated employee expectations. Natural light, air quality, biophilic design, and ergonomic layouts are now baseline requirements, not bonuses. Wellness impacts productivity, and companies know it.
      • Occupier expectations have evolved: Post-pandemic realities have recalibrated employee expectations. Natural light, air quality, biophilic design, and ergonomic layouts are now baseline requirements, not bonuses. Wellness impacts productivity, and companies know it.
      • Institutional investment is aligning with wellness metrics: Global funds evaluating Indian commercial assets are now using wellness certifications alongside green ratings like LEED and IGBC. This adds a new filter to asset valuation and lease potential.

      These evolving priorities are altering how commercial assets are evaluated. As wellness moves to the forefront, it becomes essential to define what truly sets a health-focused workplace apart from conventional developments.

      What Defines a Wellness-Focused Workplace?

      Wellness-focused commercial projects go beyond traditional aesthetics or green landscaping. They are built around human-centric principles with measurable impact on health, comfort, and performance. Wellness-focused workplaces include:

      • Air, light, and acoustics: Integration of advanced HVAC systems, daylight-maximising facades, and noise insulation contribute directly to cognitive performance and wellbeing.
      • Biophilic and restorative design From indoor green zones and nature-inspired textures to meditation rooms and wellness terraces, design is aligned with stress reduction and mental rejuvenation.
      • Activity and movement: Fitness centres, walking tracks, active staircases, and cycle-to-work infrastructure are integrated to encourage daily physical activity within the workday.
      • Food and hydration access: On-site cafes serving clean, seasonal options and smart hydration stations reinforce the health ecosystem.
      • Certifications: Projects pursuing LEED, WELL, IGBC Health and Well-being ratings show measurable commitment to global benchmarks in health-driven design.

      These features go beyond design, they directly address what today’s occupiers expect and can lead to measurable returns. It is important to assess how wellness integration is influencing both asset performance and tenant experience.

      Key Benefits for Occupiers and Investors

      The integration of wellness is not just a peripheral upgrade, it is emerging as a key performance driver for commercial real estate assets. Across markets, wellness-certified developments are demonstrating stronger leasing traction, longer tenant retention, and higher investor confidence (Business Standard).

      • Improved productivity and retention: Studies show that wellness-certified buildings enhance occupant satisfaction and performance, reducing attrition and absenteeism.
      • Premium leasing and longer lock-ins: Tenants are willing to pay a premium for wellness-certified campuses that support long-term employee engagement and brand positioning (Knight Frank).
      • Future-ready investments: As ESG reporting and corporate wellness strategies go mainstream, assets without wellness integration are likely to face rental stagnation.
      • Higher absorption across sectors: BFSI, IT, and GCCs are prioritising wellness. This is increasing the leasing velocity for such developments and boosting investor confidence.

      With the performance advantages clearly established, wellness is no longer positioned as an optional add-on. The next phase of market evolution will see it embedded into core real estate strategy, both as a competitive differentiator and a resilience-building lever.

      This redefinition is particularly relevant in a high-growth market like India. As the sector moves toward a USD 106 billion valuation by 2029, wellness-focused assets are expected to lead on rental premiums and become central to institutional investment strategies.

      At SQUAREA, we identify and enable access to India’s most forward-looking commercial assets, projects that integrate wellness, ESG, and grade relevance to deliver future-ready performance. To explore wellness-aligned commercial investments that meet global benchmarks and rising tenant expectations, write to us at hello@squarea.io or call +91 90 9641 9641. Let’s align your portfolio with the next chapter of workplace evolution!

      4 June 2025
      Philippe Starck to Armani: Exploring the World’s Top Branded Real Estate Designers

      In today’s ultra-luxury real estate landscape, it’s not just the location that defines value, it’s the designer behind the door. From haute couture to high design, the world’s most celebrated creative minds are now reshaping how the wealthy live, invest, and experience space.

      Branded residences, featuring names like Philippe Starck, Giorgio Armani, Missoni, and Fendi, are no longer niche indulgences. They are aspirational, globally aligned investments where design, service, and scarcity intersect. These homes promise more than just aesthetics, they offer a lifestyle that mirrors the sophistication of their creators. Globally, the appetite for such curated luxury is accelerating and is fast becoming the benchmark for luxury real estate.

      The Rise Of Design-Driven Branded Residences

      High-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) today are more discerning. For them, the brand story, design integrity, and curated experience hold centre stage. This has propelled the rise of branded homes.

      Across the globe, over 105,000 branded residential units are spread across 750 projects. By 2027, this number is expected to grow by nearly 60% to 1,200 developments, driven by rising demand for curated luxury living (Noesis Capital Advisors). This surge is not just about expansion, it reflects a shift in how design-led living is influencing long-term investment thinking.

      Here’s what makes these branded homes so compelling today:

      • Curated living: Homes come fully managed, with concierge, wellness, and hospitality built-in
      • Global recognition: The brand ensures international appeal and liquidity
      • Performance resilience:Even in emerging markets, branded homes tend to hold better value

      These homes command nearly a 30% markup compared to non-branded peers, underlining the significant pricing power and investment confidence they attract (Savills). This growing preference is not rooted in aesthetics alone, it reflects a deeper alignment with the design language and brand philosophy of globally celebrated creators. It is this creative influence that is now shaping the most iconic residential addresses worldwide.

      Exploring Global Icons Who Are Shaping Branded Residences

      From London to Dubai to Miami, these designers have set benchmarks in how art, design, and living come together under one roof.

      • Philippe Starck - Yoopune, India
      • Starck brought a distinct design sensibility to Yoopune, blending modern interiors with landscaped open spaces. His philosophy of design continues to influence branded residential designs in India across Pune and Bhubaneswar.

      • Giorgio Armani - Armani Residences, Burj Khalifa
      • A masterclass in understated glamour, Armani's influence can be seen in the clean lines, neutral palettes, and meticulous detailing that transform these residences into timeless sanctuaries.

      • Missoni - Missoni Baia, Miami
      • Celebrating colour, pattern, and fashion-forward elegance, Missoni’s Miami project redefines waterfront luxury through a distinctly Italian lens.

      • Fendi - Fendi Château Residences, Miami
      • These residences reflect sophistication, with every interior element crafted to echo the brand’s Roman heritage and artisanal finesse.

      • Mandarin Oriental - One Hyde Park, London
      • One of the most prestigious addresses globally, this project combines cutting-edge architecture with Mandarin Oriental service, creating an unrivalled luxury benchmark in urban living.

      • Bulgari - Bulgari Residences, Dubai
      • Located on Jumeirah Bay Island, these homes integrate Italian design tradition with Middle Eastern opulence, curated by the Bulgari brand and offering private marina access.

      • Ritz-Carlton - The Residences at NoMad, New York
      • In the heart of Manhattan, these residences bring the hospitality giant’s legendary service into full-time ownership, appealing to global citizens who seek familiarity in high-touch living.

        This global momentum is no longer confined to traditional luxury hubs. India is emerging as a compelling destination in the branded real estate landscape, backed by rising affluence, global brand entries, and evolving investor priorities.

      India's Place In The Global Branded Landscape

      While India currently holds just 3% of the global branded residences market, it is poised for significant expansion. As per Noesis Capital Advisors, the number of branded residential projects in India is expected to grow significantly in the near future. This momentum is driven by a new generation of HNIs and UHNIs who view luxury real estate as a strategic tool for wealth preservation and global alignment

      While this growth is pan-India, some regions have emerged as frontrunners in adopting and shaping the branded residence landscape:

      Established branded residence markets in India

      • Mumbai and Delhi NCR: These cities have long been the nucleus of India’s branded real estate footprint, anchored by developments like The Trump Towers. They continue to attract steady demand due to their mature buyer base, prime land, and high asset retention

      Emerging hubs of branded homes in India

      • Pune: With projects like YOO, Pune by Philippe Starck and Trump Towers, Pune has demonstrated early adoption of branded living. Its growing base of first-generation entrepreneurs and global CXOs has made it an ideal second-tier hotspot with long-term capital appreciation potential.
      • Bhubaneswar: DN YOO Odisha, a collaboration between DN Homes and YOO (co-founded by Philippe Starck), is introducing branded living to Eastern India for the first time. Positioned as a high-design offering in a growing economic zone, it signals the decentralisation of India’s luxury housing narrative.

      From Starck to Armani, today’s most influential designers are redefining the global luxury real estate landscape. At SQUAREA, we specialise in identifying branded residences where design excellence is matched by long-term investment merit. Whether you’re securing a signature address in Mumbai or entering an emerging market like Bhubaneswar, our advisory-led approach ensures each acquisition aligns with your financial vision and portfolio goals.

      To explore India’s and Dubai’s most compelling branded residences shaped by the world’s top designers, reach out to us at hello@squarea.io or call
      +91 90 9641 9641.