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

      By SQUAREA Knowledge Hub

      Published: April 17, 2025

      Real Estate in Pune - From Green Buildings to Growing Returns: The Rise of Sustainable Commercial Real Estate.

      Over 195,000 buildings worldwide are now LEED-certified commercial properties – 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 green building investment 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 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 commercial property continues 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 in real estate. Let’s take a closer look at the ESG-driven real estate investment trends.

      ESG: The New Standard in Real Estate Investment

      ESG in real estate—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:

      • Galvanize Climate Solutions has committed $2 billion to energy-efficient commercial properties, targeting a 20% reduction in sector emissions.
      • Leading global firms like Brookfield and Blackstone are embedding sustainability into their portfolios, influencing markets worldwide, including India.

      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 smart green buildings 2025 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 in real estate 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.
      • Smart green buildings 2025: 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 in real estate and regulatory norms

      At SQUAREA, we connect investors with commercial spaces designed for the future—LEED-certified commercial property, net-zero in commercial real estate, and smart green buildings 2025 that are sustainable, high-performing, and investment-worthy. Whether you’re looking for impact or income, our team of dedicated experts can help you secure opportunities that deliver both

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


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      1 August 2025
      Why End-Use Buyers Should Consider Under-Construction Projects

      End-use buyers face a strategic decision — whether to acquire a ready-to-move-in residence for immediate occupancy or to allocate capital towards an under-construction asset. While the latter has historically been associated with higher delivery risk, the landscape in 2025 is notably different. Projects are now governed by RERA-backed regulatory oversight, stringent escrow compliance, and developer accountability.

      This evolving ecosystem has redefined the relevance of under-construction inventory, particularly for Indian HNIs and UHNIs seeking customisation, capital efficiency, and future-ready design. As these dynamics continue to shape the market, it becomes essential to assess the strategic value this segment can offer. To understand the continued relevance of this segment, let’s explore the key benefits of under-construction property in 2025 for end-users.

      Advantages of Booking an Under-Construction Property as End-Users

      In 2025, the question of "should I buy an under-construction flat" is best answered by examining its strategic merits. For end-users in the luxury segment, these properties offer distinct advantages when backed by due diligence and credible delivery.

      1. Price Advantage at Entry

      Under-construction homes are priced lower than their ready-to-move counterparts in the same location. In high-demand corridors such as Pune’s western suburbs or Gurgaon’s Golf Course Extension Road, the price differential can range from 10% to 30%. (Sobha)

      This lower base cost not only enhances affordability but also improves long-term capital appreciation, especially in projects completing within the next 18–36 months.

      2. Capital Appreciation Potential

      For buyers not in need of immediate possession, entering early in a project cycle enables higher asset appreciation by the time of completion. This is particularly relevant in micro-markets undergoing infrastructure upgrades, such as Mumbai’s New Cuffe Parade or Pune’s Kharadi.

      Additionally, developers often increase pricing in tranches as construction progresses, allowing early buyers to benefit from structured value escalation.

      3. Flexible Payment Structure

      Unlike ready properties, under-construction homes offer construction-linked payment plans. This phased disbursement allows buyers to align payments with liquidity events or staggered capital deployment, thereby reducing financing pressure.

      It also enables financial planning that matches project milestones with investment goals, particularly useful for buyers funding the purchase through asset reallocation or staggered divestments.

      4. Customisation and Configuration Flexibility

      Developers of high-end projects typically allow limited customisation in flooring, layout, electricals, or interior finishes if the unit is booked in early phases. This flexibility is especially valuable for end-users seeking to tailor a home to their lifestyle or future requirements.

      Completed units, on the other hand, may require costly retrofits or compromise on layout, which is non-ideal for long-term habitation.

      5. Access to Newer, More Efficient Inventory

      Under-construction homes often incorporate newer materials, design efficiencies, and technology integrations. These include better energy ratings, improved ventilation systems, smart home readiness, and modern security systems.

      Buyers entering these projects secure residences that are aligned with the latest in home technology, both in terms of functionality and long-term market relevance.

      5.Greater Choice in Unit Selection

      Buyers of under-construction projects generally have access to a wider range of unit configurations, views, and floor elevations. This enables selection that aligns with long-term value, whether in terms of Vastu compliance, sunlight exposure, or exclusivity of position.

      This flexibility diminishes significantly once the project is completed and only residual inventory remains.

      Tax Efficiency on Home Loan Repayment

      Under-construction properties offer notable tax benefits for end-use buyers financing their purchase through home loans. End-use buyers of under-construction homes can claim up to ₹2 lakh per annum on interest under Section 24(b) and ₹1.5 lakh on principal repayment under Section 80C after possession. An additional deduction of ₹50,000 under Section 80EE or ₹1.5 lakh under Section 80EEA may also apply for eligible first-time homebuyers, depending on loan sanction timelines and conditions. (ClearTax) Given these fiscal advantages, along with the structural and design benefits, it is worth assessing how under-construction property advantages for end-users compare against ready-to-move-in properties across key decision parameters.

      Under-Construction vs Ready-to-Move Homes

      To assist end-use buyers in evaluating both options, here is a comparison of under-construction vs ready-to-move homes in India:

      Parameter Under-Construction Homes Ready-to-Move Homes
      Price Point Lower entry price Premium priced
      Customisation High (during early phases) Limited or costly
      Payment Structure Staggered, construction-linked Lump-sum or full at possession
      Availability Wide unit choice Limited inventory
      Capital Appreciation High potential pre-possession Lower due to near-peak pricing
      Immediate Use No Yes

      Under-construction homes are no longer speculative ventures. When selected with diligence, they present a compelling mix of strategic location, modern design, and financial advantage.

      For buyers exploring this segment, a home buying guide for under-construction projects should start with three pillars: regulatory compliance, developer track record, and capital alignment. These form the foundation for a confident, forward-looking investment.

      At SQUAREA, we offer curated access to India’s premium real estate opportunities, selected for their financial, legal, and execution credibility. For tailored investment guidance, reach out at hello@squarea.io or call +91 90 9641 9641.

      29 July 2025
      From Booking to Possession: What Homebuyers Should Know About the RERA Timeline

      The Real Estate (Regulation and Development) Act, or RERA, has reshaped the Indian real estate market by embedding accountability, transparency, and delivery discipline into every transaction. For high-value buyers, particularly Indian HNIs and UHNIs, this has introduced a long-overdue layer of legal clarity in a space once defined by informal practices and opaque timelines.

      These developments underscore the growing importance of understanding the RERA timeline for homebuyers in India, especially for those allocating capital into premium or under-construction assets. Whether you're investing in a branded residence or a high-rise penthouse, understanding how RERA governs your transaction is fundamental to protecting value, timelines, and long-term investment integrity.

      To fully appreciate these safeguards, it is essential to first understand the regulatory framework that underpins them.

      What Is RERA?

      RERA, enacted in 2016 and enforced from May 2017, established a regulatory framework across Indian states to promote transparency and protect property buyers (Bajaj Finserv). It mandates that developers:

      • Register their projects and disclose timelines, approvals, and land titles
      • Limit advance payments to 10% of the total cost prior to signing an agreement
      • Maintain 70% of buyer funds in an escrow account, used only for construction
      • Provide timely project updates and adhere to declared possession dates
      • Correct structural defects up to five years after handover (Bajaj Finserv)

      Most importantly, homebuyer rights under RERA include timely possession, compensation for delays, and the right to legal recourse, all of which collectively shift the balance of power from developers to buyers. To make the most of these safeguards, it's essential to understand how the RERA framework maps across the moment of booking to final possession.

      Understanding the RERA Timeline

      The journey from booking a property to receiving possession has become far more structured post-RERA. For premium real estate buyers, understanding these milestones is critical not only for timely delivery but also for enforcing contractual obligations.

      Booking and Validating Developer Credentials

      Every RERA-compliant project must be registered with the respective State RERA portal. Buyers should:

      • Verify the RERA registration number, timeline, and developer history
      • Ensure that the possession date in the agreement matches the RERA filing
      • Limit any booking amount to 10% until the agreement is executed

      This establishes the legal and financial framework that protects buyers in case of delay or dispute.

      Monitoring Construction Progress

      Developers are required to publish quarterly progress reports on the RERA portal. These reports cover:

      • Construction milestones and completion percentages
      • Updates on legal approvals, certifications, and funding
      • Any shifts in timeline or unforeseen delays

      Buyers are advised to track these updates closely. A lack of disclosure or inconsistent updates can be an early warning of execution issues.

      Final Approvals and Handover Readiness

      Before possession, developers must obtain the Occupancy Certificate (OC) and upload the Architect’s Completion Certificate (Form 4) to the portal. Homebuyers should:

      • Cross-check that the OC has been granted by the local authority
      • Physically inspect the unit for quality, layout, and finishing
      • Verify the operational status of amenities, utilities, and shared infrastructure

      Only once these are confirmed should the final payment and registration take place.

      Addressing Delays and Claiming Compensation

      If possession is not delivered by the declared date, the buyer has the right to RERA possession delay compensation under Section 18. This includes:

      • Interest on the total amount paid, often in the range of 10–11% per annum
      • Full refund with interest if the buyer chooses to cancel the booking
      • Compensation for mental distress or opportunity cost in extreme delays (Bajaj Finserv)

      Recent tribunal decisions in markets like Bengaluru and Delhi NCR have reinforced that these provisions are far from symbolic. Homebuyers facing prolonged delays have been given substantial compensation, setting a clear precedent for accountability under RERA.

      Filing a Complaint if Possession Is Denied

      Buyers can initiate formal complaints via their state’s RERA portal. The process typically involves:

      • Sending a legal notice and allowing 30 days for a developer response
      • Filing a complaint online with all necessary documents (agreement, receipts, correspondence)
      • Awaiting resolution, generally expected within 60–90 days, though this may vary by state (MAHARERA)

      Penalties can include fines, interest payments, or cancellation orders. Proactive documentation and prompt filing significantly increase the chances of favourable outcomes.

      For high-value investors, however, legal recourse is only one part of the equation. The real advantage lies in anticipating risks early and structuring the investment to avoid such pitfalls altogether.

      Strategic Tips for HNIs and UHNIs

      Navigating the booking-to-possession process in real estate for luxury and ultra-luxury properties requires a sharper lens. As a homebuyer or investor, you should:

      • Prioritise projects with consistent RERA disclosures and clean legal titles
      • Review sale agreements for force majeure clauses and extension buffers
      • Maintain a written trail of all project commitments and communications
      • Monitor actual construction status alongside RERA-declared updates
      • Act early in case of delays to preserve financial and legal positioning

      By aligning each stage of the transaction with the mandated steps in home buying under RERA, homebuyers can ensure regulatory compliance, minimise execution risk, and safeguard capital across the lifecycle of the asset.

      At SQUAREA, we guide clients through the full spectrum of compliance, from validating a project’s RERA timeline to ensuring documentation is legally sound. To explore opportunities that meet these standards, write to us at hello@squarea.io or call +91 90 9641 9641.

      27 July 2025
      How to Build a Balanced Real Estate Portfolio in 2025

      India’s real estate sector is no longer just resilient; it is outperforming. In 2024, institutional investments reached a record USD 8.9 billion, up 51% from the previous year. Of this, 45% went into residential and 28% into office assets, underscoring a clear shift toward long-term real estate allocation (JLL). Meanwhile, premium housing—homes priced above ₹10 million—witnessed a 10% year-on-year growth in Q1 2025, reflecting end-user confidence (JLL). This momentum is backed by solid fundamentals: demand from affluent buyers, foreign institutional flows, and favourable rental dynamics.

      For Indian HNIs and UHNIs, the opportunity is clear—but so is the challenge. In this dynamic environment, simply owning multiple properties no longer qualifies as strategy. In today’s market, performance comes from precision. It’s time to build with intent. This is where a balanced property investment plan becomes not just ideal, but essential.

      Why Achieving Balance Through Real Estate Diversification Is Essential in 2025

      In 2025, a real estate portfolio cannot be one-dimensional. Capital must work across different asset types—residential, commercial, listed REITs, and alternates—each serving a defined role.

      • Residential may offer long-term appreciation but lacks liquidity.
      • Commercial can deliver steady income, yet is dependent on leasing cycles.
      • REITs provide both income and liquidity, but at lower capital upside.
      • Alternate assets such as fractional ownership or plotted land provide flexibility and future potential.

      This is where a structured real estate portfolio strategy in India 2025 becomes indispensable. Diversification reduces exposure to cyclical risks and aligns real estate with your broader capital strategy—preservation, income, or intergenerational growth.

      To build that level of resilience, it is essential to understand the key levers that drive returns across property types.

      Key Components of A Balanced Real Estate Portfolio

      Truly diversified real estate investments should blend growth, yield, and optionality. Each of the following asset types plays a distinct role in building a resilient portfolio.

      Premium Residential Homes

      Premium residential housing continues to show strong absorption, especially in top cities like Mumbai, Pune, Delhi NCR, and Bengaluru. Prices are expected to rise 6.5% in 2025 and 7.5% in 2026, after a 4.3% increase last year (The Economic Times). For HNIs and UHNIs, such properties are not only lifestyle assets but also strategic capital anchors.

      Investing in a marquee branded residence or a centrally located luxury property can deliver long-term appreciation while enhancing the overall strength and identity of one’s portfolio.

      Commercial Offices And Business Spaces

      Office assets are regaining investor interest with strong leasing momentum. In Q1 2025, India’s top 8 cities recorded 20.3 million sq. ft. in gross leasing volume, with Bengaluru leading at 24%, followed by Mumbai and Pune (Cushman & Wakefield). Demand from Global Capability Centres (GCCs) and tech-driven firms continues to drive occupier interest.

      Capital allocation here should focus on income-generating Grade-A office floors or institutional business parks located in supply-constrained micro-markets with strong tenant profiles.

      REITs For Liquidity And Steady Returns

      India’s four listed REITs collectively distributed ₹1,553 crore in Q4 FY25, a 13% increase year-on-year (Business Standard). With access to institutional-grade office assets, REITs offer transparency, stable cash flows, and lower entry barriers.

      For investors seeking diversification with liquidity, allocating 10–15% of capital to REITs can provide exposure to managed real estate portfolios without the operational burden of direct ownership.

      Second Homes, Plots And Fractional Assets

      HNIs are increasingly exploring second homes in destinations such as Alibaug, Goa, and the Nilgiris, driven by lifestyle value and hybrid living trends. Plotted land in urban expansion corridors continues to offer long-term appreciation, while fractional ownership platforms are enabling entry into high-value hospitality and commercial assets through lower ticket sizes.

      These formats are well-suited for investors seeking portfolio variety, early-stage capital deployment, or assets that align with personal lifestyle preferences.

      How to Build a Real Estate Portfolio in India Strategically

      The best real estate asset mix in 2025 is not defined by fixed percentages. It’s shaped by your capital objectives, life stage, and risk appetite. Younger investors may prioritise long-term appreciation-led assets such as premium homes or land parcels, while those nearing retirement might lean towards income-generating properties and listed REITs for liquidity and stability.

      Building with intent begins with selectivity and ends with discipline. Here's how to build a real estate portfolio in India:

      • Prioritise Quality over Quantity: Choose assets with strong fundamentals—location, developer reputation, legal clarity, and exit potential.
      • Segment-Based Allocation: Decide the role of each asset—capital growth, income, lifestyle, or liquidity.
      • Stay Compliant and Informed: Understand taxation (capital gains, TDS), especially if investing across residential and REITs.
      • Monitor and Rebalance: Reassess allocation every 2–3 years based on macro cycles and personal milestones.

      With rising asset prices, record institutional activity, and growing product diversity, Indian real estate demands a more informed, balanced approach. However, navigating this landscape can feel overwhelming.

      This is where expert guidance makes all the difference. From identifying fit-for-purpose assets to managing legal diligence and long-term rebalancing, the right advisory partner ensures your portfolio is not just built, but built to endure

      At SQUAREA, we offer curated access to India's most prestigious commercial and residential properties. For tailored investment guidance, reach out at hello@squarea.io or call +91 90 9641 9641.