Kolkata’s commercial real estate sector recorded a 60-per cent year-on-year surge in leasing volumes, reaching 1.1 million sq ft in the first half of 2025, according to Knight Frank India’s latest report.
In a webinar on Thursday, real estate consultant Knight Frank released its data for the Indian real estate market for January-June 2025.
"Kolkata's office market performance in H1 2025 has genuinely surprised even the most optimistic forecasters. To see leasing volumes surge 60 per cent and achieve the highest half-yearly transaction volume in a decade is far more significant than a cyclical upturn," said Joydeep Paul, Senior Director (Occupier Strategy and Solutions)-Kolkata, Knight Frank India.
The office market witnessed its highest half-yearly transaction volume in a decade, driven by a major 0.3 million sq ft IT outsourcing deal, and two flexible workspace agreements totaling 0.1 million sq ft.
Peripheral Business Districts (PBDs) dominated, with Salt Lake City (PBD-1) accounting for 50 per cent of transactions and Rajarhat New Town (PBD-2) contributing 43 per cent, the report said.
Vacancy rates dropped sharply to 33.5 per cent, the lowest since H2 2019, while new supply remains limited – 0.2 million sq ft expected by year-end. Rentals also saw a rise of 10 per cent during the period under review.
The residential market is also undergoing strategic recalibration, reflecting evolving buyer preferences, it said.
Knight Frank noted that Kolkata’s real estate sector is transitioning with renewed confidence, supported by improved fundamentals and market segmentation.
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