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A Record-Breaking First Half for Kolkata’s Commercial Market
Kolkata’s commercial real estate sector has delivered an extraordinary performance in the first half of 2025, recording a 60% year-on-year surge in leasing volumes to reach 1.1 million sq ft, according to Knight Frank India’s latest report. This marks the city’s highest half-yearly transaction volume in a decade, far surpassing even the most optimistic forecasts.
The surge was propelled by a landmark 0.3 million sq ft IT outsourcing deal and two significant flexible workspace agreements totaling 0.1 million sq ft. Peripheral Business Districts (PBDs) led the charge, with Salt Lake City (PBD-1) accounting for 50% of all transactions and Rajarhat New Town (PBD-2) contributing 43%. This geographic concentration underscores the growing appeal of Kolkata’s PBDs for both established firms and new entrants.
Vacancy rates in Kolkata’s office market dropped sharply to 33.5%—the lowest since H2 2019—while new supply remains limited, with just 0.2 million sq ft expected by year-end. Rentals climbed 10% during the period, reflecting strong demand and improved market fundamentals.
Kolkata’s residential sector is also evolving, with buyers’ preferences shifting and developers recalibrating their offerings to meet new market realities. Knight Frank notes that the city’s real estate sector is transitioning with renewed confidence, supported by improved fundamentals and sharper market segmentation.
As Kolkata’s commercial and residential real estate markets undergo strategic shifts, the city is poised for sustained growth, driven by robust demand, landmark deals, and a new era of market confidence.
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