'Salt Lake, Rajarhat drives city's office space leasing in Q1 2025'

Kolkata: The Kolkata office market in Q1 2025 demonstrated stable leasing momentum with a gross leasing volume (GLV) of 0.26 million square feet (msf), driven by fresh leasing activity across prime micromarkets such as Sector V, Salt Lake and Rajarhat.

According to a report by the global real estate services firm, Cushman & Wakefield, Sector V, Salt Lake and Rajarhat accounted for 87 per cent of GLV, reinforcing their status as prime office corridors. The Central Business District (CBD) contributed the remaining 13 per cent.

Total office inventory was 27.59 msf, with Sector V, Salt Lake (13.01 msf) and Rajarhat (10.59 msf) accounting for the majority. Some of the key transactions are: Linde India leased 50,000 sf at RDB Primarc (Rajarhat); LTI Mindtree leased 41,000 sf at DLF-II (Rajarhat); Standard Chartered Bank leased 28,887 sf at Siddha Esplanade (CBD); Iqvia leased 26,982 sf at Godrej Waterside (Sector V, Salt Lake); Kalpataru Projects leased 12,000 sf at Mani Casadona (Rajarhat).

The report said a strong supply pipeline of 5.12 msf is planned or under construction through 2027, with Rajarhat (3.16 msf) and Park Circus Connector (1.03 msf) leading.

Further, the engineering and manufacturing sector led leasing activity signalled diversification beyond the traditional IT-BPM dominance. BFSI and flex operators also showed steady interest.

According to the report, the Kolkata office market is poised for balanced growth in 2025, supported by a robust supply pipeline and sustained leasing demand. Prime micro markets like Sector V, Salt Lake and Rajarhat will continue to drive absorption, while the CBD remains attractive for high-value tenants.

The influx of 1.6 msf of new supply may stabilise vacancy rates and keep rentals range bound. Sectors such as engineering, IT-BPM and BFSI are expected to remain key demand drivers, with flex operators likely to expand as hybrid work models persist.