Kolkata's Office Real Estate Surges to Decade-High in 2025

Kolkata's office real estate market has recorded its strongest performance in over a decade, with annual leasing volumes surging 69% year-on-year to 2.3 million square feet, according to a report by Knight Frank India. This is the first time the city's office sector has crossed the 2 million square feet threshold.

The report, titled 'India Real Estate: Office and Residential Market, July-December 2025,' highlighted that office transactions in the second half of 2025 jumped 78% year-on-year to 1.2 million square feet. This surge in leasing activity is a testament to the growing demand for office spaces in the city.

Average office rents in Kolkata rose 16% year-on-year to Rs 47.5 per square foot per month, marking the highest rental growth among India's eight major office markets. This growth in rental prices is a clear indicator of the market's robust health and the city's increasing attractiveness to businesses.

In the residential segment, Kolkata's sales in the second half of 2025 grew 7% year-on-year to 8,806 units. While full-year sales for 2025 moderated marginally by 3% to 16,896 units, developer confidence saw a significant boost. New residential launches rebounded by 38% year-on-year in the second half of 2025 to 8,098 units.

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 square foot. Residential prices in the city saw an increase of 6% year-on-year. This affordability, coupled with the city's steady economic growth, has made it a preferred destination for homebuyers.

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

Overall, the strong performance of Kolkata's real estate market, particularly in the office segment, reflects the city's growing economic significance and its ability to attract both domestic and international businesses. The affordability and stability of the residential market further contribute to the city's appeal as a desirable place to live and work.