Q1 2025: Kolkata records office transactions of 0.16 mn sqft
Kolkata: Kolkata’s average transacted office rents increased by nine per cent among top eight cities while average residential prices soared to Rs 3,947 per sq ft, the highest since Q1 2018.
According to a latest report by the real estate consultancy firm Knight Frank India, in Q1 2025, a total of 0.16 million square feet (mnsqft) of office space was leased, reflecting a 16 per cent decline compared to Q1 2024, which saw 0.20 mn sqft leased. “Despite this drop, the city’s average transacted office rents increased by 9 per cent, reaching Rs 42/sq ft/month — highest among the top eight cities, alongside Hyderabad,” the report claimed.
Flexible spaces and Global Capability Centres (GCCs) led the Kolkata office market in terms of end-use. Flexible spaces contributed to nearly half of the overall transactional area recorded in Q1 2025 in Kolkata, witnessing 0.08 mn sqft of transactional volume within flex. Followed by GCCs which collectively accounted for 0.04 mn sqft of transactional volume, contributing to 24 per cent of the city’s overall market share.
Meanwhile, the residential market experienced a modest 2 per cent YoY decline in sales volume, with 3,858 units sold in Q1 2025 compared to 3,937 units in Q1 2024. However, the average residential price soared to Rs 3,947 per sq ft—the highest since Q1 2018 — reflecting a 9 per cent year-on-year (YoY) increase in Q1 2025. Additionally, the city saw the launch of 3,707 new units during the quarter.
Sales of residential units priced between Rs 20-50 million saw the highest YoY growth of 149 per cent, increasing from 180 units in Q1 2024 to 448 units in Q1 2025. Meanwhile, units priced less than Rs 5 million remained the largest in Kolkata, accounting for 41 per cent of total sales, with 1,598 units sold in Q1 2025 — the highest among all price categories.
Joydeep Paul, senior director- Occupier Strategy & Solutions, Knight Frank India, said: “The growing presence of India-focused businesses in Kolkata’s commercial market indicates a promising growth trajectory for the sector in the coming years. With average transacted rents steadily increasing, the market is set for multifaceted expansion. Coupled with sustained demand for premium housing and major infrastructure developments, the city is well-positioned for continued growth in 2025.”
