Kolkata Office Leasing Surges to Decade-High in 2025: Knight Frank Report

Kolkata’s office real estate market recorded its strongest performance in more than a decade in 2025, with annual leasing volumes surging 69 per cent year-on-year to 2.3 million square feet, according to a report by Knight Frank India released on Wednesday.

Kolkata crossed the 2 million sq ft mark in office leasing for the first time, the report said. Office transactions in the second half of 2025 rose 78 per cent year-on-year to 1.2 million sq ft. This significant growth is a testament to the city's growing economic activities and the increasing demand for office spaces.

Average office rents increased 16 per cent on-year to Rs 47.5 per sq ft per month, the highest rental growth among India’s eight major office markets, the report added. This growth in rental prices reflects the high demand and the limited supply of office spaces in the city.

The residential market remained steady, with sales in H2 2025 rising 7 per cent year-on-year to 8,806 units. However, full-year residential sales in 2025 moderated marginally by 3 per cent to 16,896 units. Despite this slight moderation, the residential market showed resilience and stability.

Developer confidence improved significantly, with new residential launches rebounding 38 per cent year-on-year in H2 2025 to 8,098 units, the report noted. This increase in new launches indicates a positive outlook for the residential real estate sector in Kolkata.

Kolkata continued 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 rose 6 per cent year-on-year, making it an attractive market for homebuyers.

“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 city has remained affordable for homebuyers, positioning Kolkata as a sustainable, value-driven market over the long term.

The report further noted that unsold residential inventory declined 5 per cent year-on-year to 19,630 units, the lowest level in a decade. Market fundamentals tightened further due to the absence of new office supply in 2025, resulting in a sharp drop in vacancy levels to 29.9 per cent.

Overall, the real estate market in Kolkata is showing robust growth and stability, with both the office and residential sectors performing well. The city's strategic location, infrastructure development, and economic activities are key drivers of this growth.