Kolkata Emerges as India’s Fastest-Growing Office Market in 2025

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Thu, Jan 08, 12:20 AM IST • 2 min read

Kolkata’s office real estate market has delivered its strongest performance in over a decade, emerging as India’s fastest-growing office market in 2025, according to a recent report by Knight Frank India.

 

Record Office Leasing Growth

 

The city witnessed a 69% year-on-year growth in office leasing, the highest among India’s top eight cities. Annual leasing volumes reached 2.3 million sq ft, marking the first time Kolkata crossed the 2 million sq ft threshold. The momentum was particularly strong in the second half of 2025, with H2 office leasing surging 78% YoY to 1.2 million sq ft.

 

Rising demand also pushed average office rents up by 16% YoY to ₹47.5 per sq ft per month, making Kolkata the leader in rental growth among major Indian office markets.

 

How Other Cities Fared

 

  • Bengaluru: 59%
  • Pune: 36%
  • Chennai: 24%
  • Hyderabad: 10%
  • Mumbai: -5%
  • Delhi NCR: -11%
  • Ahmedabad: -34%

 

Residential Market on an Uptrend

 

Kolkata’s residential segment also showed positive signs:

 

  • New residential launches up 38% YoY in H2 2025, totaling 8,098 units
  • Residential sales grew 7% YoY in H2 2025
  • Unsold inventory dropped to 19,630 units, the lowest in a decade
  • Average residential prices increased 6% YoY
  • Kolkata remains the second most affordable residential market among India’s key cities, with an average price of ₹4,037 per sq ft

 

Market Outlook

 

The strong office leasing performance, combined with steady residential growth, reflects Kolkata’s position as a sustainable, value-driven market. Tightened vacancy levels (down to 29.9%) due to limited new office supply further strengthen the city’s real estate fundamentals.

 

“The H2 office market in Kolkata is a wonderful success story with record growth in the region,” said Joydeep Paul, Senior Director - Occupier Strategy and Solutions, Knight Frank India.
“The city has managed to stay steady and affordable for homebuyers, positioning itself as a long-term growth market.”

 

Kolkata’s real estate story in 2025 is a testament to its resilience, affordability, and investment potential, making it a city to watch for both commercial and residential growth.