Rent for top grade office in Calcutta went up by 16 per cent in 2025, highest in percentage terms among the leading cities in the country, as occupancy levels rose amidst a lack of fresh supply of office properties.

A study conducted by consultancy Knight Frank put the average office rent in Calcutta at ₹48 per square foot in 2025, which also saw total transactions crossing 2 million square feet almost after a decade.

The city reported a 69 per cent jump in leasing last year compared with 2024. In the second half (July-December) the percentage growth was 78 per cent.

Notwithstanding sharp jumps in leasing activities and prices, the city remained one of the most affordable places to rent an office in the country. In other words, despite the percentage jumps, the absolute rent and leasing volumes were only higher than Ahmedabad among 8 major cities surveyed by Knight Frank.

To put in perspective the city’s office market performance — a key barometer for economic activities and white-collar job creation — Bengaluru posted a 58.9 per cent growth in office transaction to 28.7 million square feet, over 10 times higher than of Calcutta.

Joydeep Paul, senior director of Knight Frank based in Calcutta, argued that the performance reinforces the city’s strategic appeal as a high-value, cost-effective hub for corporate occupiers, proving that the demand is structural and long-term, not merely cyclical.

A key feature of Calcutta’s office transaction was the absence of GCC (Global Capability Centres) — the back office of foreign multinationals as occupiers.

India facing businesses and flex office space operators were the major occupiers of the Calcutta market in 2025.

GCC is the biggest driver of India’s office space consumption (38 per cent of total leasing) and major contributors for growth in Bengaluru, Hyderabad, Pune, Chennai and Delhi.

For the full year, gross leasing surged to 86.4 million square feet across eight cities, led mostly by Bengaluru, registering a 20 per cent year-on-year (YoY) increase and surpassing the previous peak achieved in 2024.

The scale of activity also represents a 43 per cent rise over the pre-pandemic high recorded in 2019, highlighting the sustained expansion of
occupier demand over the
past four years, Knight Frank said.

New completion rose by 9 per cent to 54.8 million square feet. Notable absentee from fresh supply: Calcutta.