Two office buildings may look equally attractive, offer similar amenities and command comparable rents. Yet one could consume twice as much electricity and substantially more freshwater than the other. That difference affects operating costs, the attractiveness of the property and its long-term value, yet is rarely visible when buildings are marketed, leased or valued. And when buildings consume more energy and water than necessary, the consequences extend beyond individual properties: They add to the energy and water infrastructure that must be built and the public and private investment needed to support it.
Yet there is a considerable opportunity here. Buildings can be designed and operated to consume substantially less electricity and freshwater, while offering better comfort and reliability. High-performance buildings demonstrate that reductions of 50–75% against conventional benchmarks are technically possible, often without imposing added construction costs. Also, the benefits can accumulate over decades, making better performance an economic proposition rather than simply an environmental aspiration.
The evidence is already visible in India. Infosys Crescent in Bengaluru, a large office building, consumes roughly half the electricity and water of a conventional office building. It saves approximately ₹5.7 crore annually on electricity bills and was constructed without a premium over comparable conventional buildings.
Notably, this is not an isolated example. Suzlon One Earth in Pune and Atal Akshay Urja Bhawan in Delhi, for instance, demonstrate how thoughtful design and building management can substantially improve energy and water performance. The Bureau of Energy Efficiency's operational star-rating programme provides further evidence that buildings across India can achieve high levels of energy efficiency in practice.
The lesson is important. India already has much of the technology and expertise needed to construct substantially better buildings. The challenge is to make their advantages count in everyday commercial decisions.
{{/usCountry}}The lesson is important. India already has much of the technology and expertise needed to construct substantially better buildings. The challenge is to make their advantages count in everyday commercial decisions.
{{/usCountry}}Developers understandably focus on construction costs, while buyers and tenants consider prices, rents, amenities and maintenance charges. But a building that consumes significantly less electricity and freshwater can offer substantial savings throughout its life. It may also be less vulnerable to rising tariffs, water shortages and interruptions to essential services.
For owners, better performance can make a property more attractive to occupiers. For businesses, it can lower costs and improve reliability. For investors and lenders, it offers useful information about asset quality and long-term risk. The relevant question is therefore not simply how quickly an additional investment in efficiency pays for itself, but what it costs to own and operate a building over its lifetime.
India's green building movement has laid an important foundation. Certification systems have raised design and construction standards, encouraged innovation and established sustainability as a recognised feature of quality real estate. The next step is to give actual operating performance similar importance. Buildings should demonstrate that the benefits anticipated during design are delivered and sustained after occupation.
Encouragingly, the market is moving in this direction. Developers and institutional investors are paying closer attention to consumption data, occupiers are increasingly exploring performance commitments in leases, and green building certification institutions are increasingly recognising operational results.
Policy is beginning to catch up. NITI Aayog's 2026 buildings sector report highlights the need for better disclosure of actual energy consumption, comparable performance benchmarks and a national building data system, and the Ministry of Power is considering a performance-based star ratings system for buildings.
What is still missing is a market in which better performance can be readily identified and rewarded. Buyers, tenants and financiers often lack reliable information to distinguish exceptionally efficient buildings from ordinary ones. Without such information, developers have limited incentives to invest in improvements whose benefits may accrue primarily to future occupants.
Changing this need not require an elaborate new regulatory framework. Major commercial buildings could disclose verified electricity and freshwater consumption against appropriate benchmarks. Public agencies could incorporate performance requirements into procurement and leasing. Developers could make verified operating costs and performance a selling point, while lenders and investors could use this evidence to distinguish better-performing assets and offer financing terms that reward sustained efficiency.
India has already demonstrated that high performance buildings are technically feasible. The task now is to make these advantages count in property choices, investment decisions and market value. High performance buildings should no longer be the exception. They should become the norm across Indian real estate.
(The views expressed are personal)
This article is authored by Manish Dubey, dean and Rahul Bajaj Chair, IIHS School of Governance and Amir Bazaz, associate dean, IIHS School of Systems & Infrastructure.