Kolkata office leasing hits decade high in 2025, residential market steady: Report

Kolkata, Jan 7 (PTI) Kolkata's office real estate market recorded its strongest performance in over a decade in 2025, with annual leasing volumes surging 69 per cent year-on-year to 2.3 million sq ft, a report by Knight Frank India said on Wednesday.

This is the first time the city's office sector crossed the 2 million sq ft threshold, it said.

The report – India Real Estate: Office and Residential Market, July-December 2025 – highlighted that office transactions in the second half of 2025 jumped 78 per cent on-year to 1.2 million sq ft.

Average office rents rose 16 per cent year-on-year to Rs 47.5 per sq ft per month, the highest rental growth recorded among India's eight major office markets, it said.

In the residential segment, Kolkata’s sales in H2 2025 grew 7 per cent on-year to 8,806 units.

While full-year sales of 2025 moderated marginally by 3 per cent to 16,896 units, developer confidence saw a significant boost as new residential launches rebounded by 38 per cent year-on-year in H2 2025 to 8,098 units, the report stated.

Kolkata continues to be the second most affordable residential market among the eight key Indian cities tracked, with an average price of Rs 4,037 per sq ft. Residential prices in the city saw an increase of 6 per cent year-on-year.

"The H2 office market in Kolkata is a wonderful success story with record growth in the region," said Joydeep Paul, Senior Director - Occupier Strategy and Solutions, Kolkata, Knight Frank India.

He added that the metropolis has managed to stay steady and remain affordable for homebuyers, positioning Kolkata as a sustainable, value-driven market for the long-term.

The report also noted that unsold residential inventory in the city declined by 5 per cent year-on-year to 19,630 units, reaching its lowest level in a decade.

Market fundamentals were further tightened by a continued absence of new office supply in 2025, leading to a sharp decline in vacancy levels to 29.9 per cent, it said. PTI BSM RBT