Kolkata’s office real estate market recorded its strongest growth in a decade last year, with leasing activity rising sharply, according to a report by real estate consultancy Knight Frank India.
The volume of office space leased in the city increased 69 per cent year-on-year to 2.3 million square feet in 2025. This marked the first time Kolkata’s office market crossed the 2 million square feet threshold, a significant milestone for the city’s commercial real estate sector.
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The report, titled India Real Estate: Office and Residential Market, July–December 2025, noted that transaction momentum accelerated further in the second half of the year. During the July–December period, office space leasing rose 78 per cent compared to the same period a year earlier, reaching 1.2 million square feet.
According to industry experts, renewed demand from the information technology and services sector, combined with Kolkata’s relatively lower occupancy costs, has brought the city back into focus for occupiers and investors. Rising demand has also pushed up rents. Average office rents increased 16 per cent year-on-year to Rs 47.5 per square foot per month.
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Among India’s eight major office markets, Kolkata recorded the highest rental growth. At the same time, limited addition of new office projects has tightened supply, leading to a sharp decline in vacancy levels to 29.9 per cent.
The residential market has also shown stability. During the July–December period, residential flat sales in Kolkata rose 7 per cent year-on-year to 8,806 units.
