Kolkata Warehousing Market Maintains Resilience Amid Cost Challenges

Warehousing leasing in Kolkata fell by 30% in 2025 due to high land prices and limited availability of Grade A facilities. Despite this, the market remains resilient, supported by infrastructure improvements and increased manufacturing demand, with Dankuni and surrounding areas dominating the market.

In 2025, warehousing leasing in Kolkata witnessed a 30% year-on-year decline, dropping to 4.6 million square feet from 6.5 million square feet in 2024, primarily due to elevated land prices and scarcity of Grade A facilities, a Knight Frank India report reveals.

Despite the downturn in leasing activity, Kolkata's warehousing market displays resilience, bolstered by infrastructure enhancements and dynamic occupier demand. Third-party logistics and e-commerce continued as leading demand drivers, yet the 3PL segment's share decreased from 42% to 32% in 2025, indicating a shift in occupier strategies.

Dankuni and its environs sustained dominance, covering 60% of total leasing in 2025, highlighting the area's strategic appeal with its prime location and connectivity. Joydeep Paul of Knight Frank India points to supply issues rather than demand weakness as the main cause for the leasing volume drop, anticipating a market rebound with planned infrastructure upgrades.

(With inputs from agencies.)