Kolkata records 0.2 mn sq ft of gross leasing in Q2 2026

• In Q2 2026, Kolkata saw gross office leasing of 0.2 mn sq ft. Office space take-up fell by 65% y-o-y and 61% q-o-q due to slow decision-making by occupiers. Net absorption for the quarter reached 0.23 mn sq ft.
• Demand for office spaces was concentrated in Salt Lake Sector V and Rajarhat. Salt Lake represented 76% of quarterly gross leasing, and Rajarhat with 18%. Telecom, Healthcare and Real Estate firms combined drove 40% of leasing activity, with co-working contributing 33%.

Rajarhat dominates supply additions in Q2 2026

• The Rajarhat submarket witnessed the introduction of a new office with 0.23 million sq ft of supply. Consequently, the overall office stock increased to 29.9 million sq ft during the quarter.
• The quarter saw a 20-bps increase in vacancy rate to 13.8%, driven by the completion of a new office development, while demonstrating a 140 bps y-o-y decrease. Salt Lake submarkets experienced significant annual vacancy decline.

Rent growth notable across submarkets

• Strong office space demand and consistent vacancy decline pushed rents to INR 70.5 per sq ft per month, marking a 4.3% y-o-y and 1.0% q-o-q rise for the overall market.
• Salt Lake submarket led rent growth with a 2.2% increase to INR 60.3 per sq ft per month, while Rajarhat posted a 1% rise to INR 55 per sq ft per month. Muted occupier demand coupled with lack of new supply reflected in rent escalation across most submarkets.

Outlook: New Grade A supply to drive occupier demand

• Multiple new office projects are scheduled for completion in 2026 and are expected to add nearly 1.4 mn sq ft of cumulative office supply in locations such as Newtown, Salt Lake Sector V and EM Bypass.
• The upcoming new supply is expected to stimulate occupier demand in key office precincts. Leasing activity by IT & ITeS firms and co‑working operators is expected to remain healthy and drive rental growth in the coming quarters.