Kolkata's Office Real Estate Boom: Record Growth in 2025

Kolkata's office real estate market achieved a record-breaking performance in 2025, with leasing volumes increasing by 69% to 2.3 million sq ft. The residential market showed moderate growth, while unsold inventory decreased. The city remains one of the most affordable residential markets in India.

Kolkata's office real estate sector experienced unprecedented growth in 2025, as leasing volumes soared by 69% year-on-year, reaching 2.3 million square feet, according to a Knight Frank India report released this week.

For the first time, the city's office sector surpassed the 2 million square feet threshold, marking a historic achievement. The second half of the year particularly stood out, with office transactions rising by 78% year-on-year to 1.2 million square feet, and rental rates increasing to Rs 47.5 per square foot per month, the highest among India's major markets.

While Kolkata continues to be the second most affordable residential market among key Indian cities, it also saw a reduction in unsold inventory. The city's residential market witnessed a 7% rise in sales in the second half of 2025, though full-year sales slightly declined by 3% to 16,896 units. New residential launches rebounded significantly by 38% in H2 2025, reinforcing developer confidence.

(With inputs from agencies.)