Tech firms power Kolkata's office leasing as vacancy falls and rents rise in Q2 2026

Kolkata's Grade A office market remained resilient in the second quarter of 2026, with strong demand from technology companies driving leasing activity despite the absence of any new office supply.

According to the latest market data, the city's total Grade A office stock stood at 28.6 million sq ft at the end of Q2 2026. Vacancy continued to improve, declining to 16.0%, a reduction of 205 basis points year-on-year, while average weighted asking rents increased 8.8% year-on-year to ₹64.4 per sq ft per month.

Gross office absorption reached 0.5 million sq ft during Q2 2026, taking the total for the first half of the year to 0.6 million sq ft. Conventional office spaces accounted for 74% of total leasing activity, while flexible workspaces contributed the remaining 26%.

Technology companies dominate office leasing

The technology sector emerged as the largest occupier of office space in Kolkata during the quarter, accounting for 69% of all conventional office leasing. Engineering and manufacturing companies followed with a 16% share, reflecting continued confidence from both digital and industrial businesses in the city's commercial real estate market.

Large occupiers continued to shape leasing trends, with nearly 49% of all transactions exceeding 100,000 sq ft. The Peripheral Business District (PBD) accounted for 100% of office leasing activity during Q2 2026, reinforcing its position as Kolkata's preferred destination for large-scale corporate campuses.

Accenture leads the biggest office deal

The quarter's largest transaction was signed by Accenture, which leased 297,600 sq ft at Candor TechSpace, marking one of the biggest office leasing deals in Kolkata in recent years.

Other notable transactions included:

• UrbanWrk leasing 30,000 sq ft
• Jindal Steel leasing 23,000 sq ft

These transactions underline sustained demand for high-quality Grade A office space from technology, enterprise, and industrial occupiers.

Positive outlook for Kolkata's commercial real estate

Despite no new office completions during the quarter, Kolkata's office market continues to demonstrate resilience. Declining vacancy levels, rising rentals, and large technology-led transactions indicate healthy occupier demand and improving market fundamentals.

As more IT companies, engineering firms, and enterprise occupiers expand their presence in the city, Kolkata is strengthening its position as one of India's emerging commercial office destinations. With a growing preference for premium office spaces and business parks, the city's commercial real estate market is expected to remain on a stable growth trajectory in the coming quarters.