Business Case for Green Buildings in India

Cities in India contribute significantly to the economic growth adding more than 60% to GDP which is expected to increase to 75% by the year 2030. Green commercial buildings have been an emerging trend in cities over the conventional building for more than a decade now since LEED rating systems came to India in the year 2001 in partnership with CII-IGBC. Cities have resource challenges with the commercial energy shortage, water demand-supply imbalance, significant increase in solid wastes that a building generates and hyperinflation in the price of building materials because of resource-supply challenges. Green buildings globally are considered resource efficient and environment-friendly. The green rating systems in India and all around the world claim resource and environment efficiency of green rated buildings but more evidence-based research is needed.This paper attempts to explore if incremental costs of building green do result in tangible benefits during the life cycle of green building. This paper uses qualitative approach using secondary data analysis and exploratory interviews with green consultants, architects and developers to access if building green has tangible benefits or not.The paper also finds out that green buildings though comes out as resource efficient over a conventional building but tangible benefits need further evidence-based research in terms of rental premiums, occupancy rates and energy efficiency savings.