India’s green building market is projected to grow at a 10.5 per cent compound annual growth rate (CAGR) until FY 32, to an opportunity size of $85 billion, a report said on Monday.

The strong growth in certified spaces is driven by investor and tenant demand amid rising absorption and tightening supply, according to the report by investment banking firm Equirus Capital.

The report said that certified supply in the market over the past 5.5 years was three times higher than non-certified supply, with absorption rates approximately 1.75 times higher than non-certified space, reflecting occupiers’ clear preference.

Between 2020 and H1 2025, leasing in certified spaces outpaced new certified supply by 6 per cent, intensifying competition for green spaces, the investment banking firm said.

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