Real estate consultancy services company Jones Lang LaSalle has stated that the rising cost of natural resources and the growing concern for the environment is strengthening the need for developing green buildings.
Yet, the concern over additional capital cost and uncertainty over returns are daunting investment sentiments in green buildings.
In its monthly report Pulse, the company said while green buildings turn out to be profitable due to savings in energy and other operational costs while providing options for trading and earning credits, the challenge is to translate these intangible benefits to cash flow that would help assess the value of buildings or projects viably.
City trends
In Hyderabad, the demand remained stable with good leasing and pre-leasing activity, the vacancy rate decreased marginally as there was no new office space supply in the city. A few key transactions included Callidus leasing SEZ space in Mindspace, AT&T leasing at The V and JDA in Meenakshi Tech Park.
Residential sales picked up in select projects. The retail demand was stable in prime as well as sub-urban high streets.
In Kolkata, the demand was buoyant and demand picked up in Delhi and NCR during May, particularly at Gurgaon and Noida.
Office leasing had gained with strong demand from IT and ITES in Chennai. The Bangalore market witnessed healthy activity. Mumbai saw moderate leasing activity on the back of stable demand in office.
