Kolkata: Kolkata’s retail space leasing in Q1 2025 totalled 3500 square feet (sf) with main streets accounting for 90 per cent of leasing volumes due to constrained Grade-A mall availability.
According to a report by the global real estate services firm, Cushman & Wakefield, fashion brands led with over 50 per cent of leasing volumes followed by Food & Beverage (F&B) at 30 per cent. Accessories and lifestyle brands contributed to 11 per cent of the leasing activities.
Central Business District (CBD) main streets — Theatre Road, Elgin Road and Chowringhee Road — saw strong absorption by fashion and F&B brands. Notable transactions included The Flamboyant (11000 sf) on Chowringhee Road, Tasva (2500 sf) and Zoya (2000 sf) on Elgin Road and Ethnic (1500 sf) on Theatre Road. Other areas such as Alipore (south) and Chinar Park (northeast) recorded healthy leasing.
Demand for main street spaces is expected to remain robust, with upcoming mall supply likely to alleviate pressure on premium retail spaces.
In malls, South City Mall (Prince Anwar Shah Road) and Acropolis Mall (Rashbehari Connector) saw activity from CDIT and fashion brands, including Kingdom of White (1000 sf) at Acropolis Mall. The report stated that new mall completions at Joka and Alipore will expand premium retail options, potentially easing pressure on main streets.
In terms of rental trends, CBD locations such as Park Street (Rs 650/sf/month), Camac Street (Rs 540/sf/month) and Theatre Road (Rs 290/sf/month) recorded no quarter-over-quarter (QoQ) change but saw year-over-year (YoY) increases of 5 per cent, 4 per cent and 6 per cent, respectively.
Suburban locations such as Gariahat (Rs 328/sf/month) and Kankurgachi (Rs 215/sf/month) saw marginal QoQ rental growth of 1.2 per cent and 1.4 per cent, respectively, with YoY increases of 10 per cent each. Other areas such Shyambazar (Rs 125/sf/month), Hatibagan (Rs 141/sf/month) and VIP Road (Rs 138/sf/month) remained unchanged QoQ.
Grade-A mall vacancy tightened marginally to 2.6 per cent, underscoring strong occupier interest. City-wide vacancy remained stable at 6.8 per cent, indicating balanced market dynamics.
The report stated Fashion and F&B will likely continue driving growth, underpinned by favourable economic conditions.