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Kolkata's office real estate market delivered its best performance in more than ten years during 2025, driven by a sharp rise in leasing activity and rental growth. Annual office leasing volumes rose 69 per cent year-on-year to 2.3 million square feet, marking the first time the city crossed the 2 million sq ft milestone. Office transactions in the second half of the year also recorded robust growth, while rents increased at the fastest pace among major Indian office markets. Residential demand remained steady, supported by improving developer confidence, rising new launches and declining unsold inventory, reinforcing Kolkata's position as an affordable and stable real estate market.
Kolkata's office real estate market recorded its strongest performance in over a decade in 2025, with annual leasing volumes surging 69 per cent year-on-year to 2.3 million square feet. This marked the first time the city's office sector crossed the 2 million sq ft threshold, highlighting a renewed momentum in commercial real estate demand. Advertisement
The office market saw particularly strong activity in the second half of the year, with transactions jumping 78 per cent on-year to 1.2 million square feet. Demand was supported by occupiers expanding operations and consolidating space requirements, even as new office supply remained absent through the year. The lack of fresh supply contributed to a tightening of market fundamentals, with vacancy levels declining sharply to 29.9 per cent.
Average office rents in the city rose 16 per cent year-on-year to INR 47.5 per square foot per month, the highest rental growth recorded among India's major office markets during the year. The increase reflects strengthening occupier confidence and limited availability of quality office spaces in prime locations.
In the residential segment, Kolkata continued to demonstrate stability and affordability. Housing sales during the second half of 2025 grew 7 per cent year-on-year to 8,806 units. While full-year residential sales moderated marginally by 3 per cent to 16,896 units, developer confidence improved significantly. New residential launches rebounded sharply, rising 38 per cent year-on-year in the second half to 8,098 units, indicating optimism about future demand.
Kolkata remained the second most affordable residential market among major Indian cities, with average prices at INR 4,037 per square foot. Residential prices increased by 6 per cent year-on-year, reflecting gradual appreciation without compromising affordability.
The report also highlighted a continued improvement in inventory levels, with unsold residential stock declining 5 per cent year-on-year to 19,630 units, the lowest level seen in a decade. The combination of strong office market performance, improving residential dynamics and affordability has positioned Kolkata as a sustainable, value-driven real estate market with long-term growth potential.
Source - PTI
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