Kolkata records 1.6 mn sq ft gross leasing in 2025

• During the quarter, Kolkata recorded gross leasing of 0.32 million sq ft of office space. Overall, office space demand shows a 29% y-o-y and 3% q-o-q increase. Quarterly net absorption stood at 0.29 million sq ft for the period.
• Office space demand was concentrated in the Salt Lake and Rajarhat submarkets. Salt Lake accounted for 77% of total gross leasing, while Rajarhat contributed 23%. Co-working providers accounted for 45% of leasing activity, followed by IT & ITeS firms at 24%.

Lack of new office supply in Q4 2025

• With no new office supply, vacancy dropped by 190 bps on a y-o-y basis to 14.5%. Rajarhat recorded a 170 bps quarterly decline in vacancy to 11.8%.
• The overall office stock remained stagnant at 29.9 million sq ft due to a lack of new supply across submarkets. The Salt Lake and Rajarhat submarkets experienced a significant annual decline in vacancy.

Rental growth across multiple submarkets

• Strong demand for office space and a steady decline in vacancy drove rents to INR 69.7 per sq ft, representing a 6.7% y-o-y and 1% q-o-q increase.
• Rental growth during the quarter was led by the Salt Lake submarket, which recorded a 1.2% rise to INR 58.2 per sq ft, while Rajarhat registered a 1.1% increase to INR 53.9 per sq ft. Healthy occupier demand in both submarkets fuelled rent escalation.

Outlook: New office supply to boost demand and drive rental growth

• Seven new office projects are scheduled for completion in 2026 and are expected to add 2.1 million sq ft of cumulative office supply across SBD, Salt Lake and Rajarhat.
• The upcoming new supply is expected to stimulate demand for office space. Leasing activity among IT & ITeS firms and co‑working operators is projected to drive growth in the 2026 quarters, supporting further rent appreciation.