Kolkata has emerged as a leader in India’s office rental market, recording the highest growth in average office rents during the first quarter of 2025. According to the latest Knight Frank India report, rents in the city surged 9% year-on-year, matching Hyderabad and outpacing other major cities such as Bengaluru (8%), NCR (6%), and Mumbai (2%).

The average transacted rent in Kolkata rose to ₹42 per square foot per month in Q1 2025, even though total office leasing activity dipped to 0.16 million sq ft — a 16% decline compared to last year. Industry experts attribute this rental rebound to rising demand and long-overdue market corrections. “Rentals fell to historic lows over the last 4–5 years and were bound to rise, given the demand from GCCs and the overall infrastructure improvements made by the government,” said Siddharth Pansari, President of CREDAI Bengal.

Key deals fueling Kolkata’s commercial real estate momentum include Genpact leasing 50,000 sq ft and Akasa securing 46,000 sq ft in Godrej Genesis, alongside Standard Chartered’s 36,000 sq ft space in Siddha Esplanade, as noted in CBRE’s Q1 2025 report.

Kolkata’s transformation into a competitive commercial destination is increasingly visible. “The growing presence of India-focused businesses in Kolkata’s commercial market indicates a promising growth trajectory for the sector in the coming years,” said Joydeep Paul, Senior Director of Occupier Strategy & Solutions at Knight Frank India.

Developers also sense the market heating up. Saket Mohta, MD of Merlin Group, highlighted the successful sale of their office project, The Summit, Sector V’s tallest office tower. “Additionally, we are developing Bengal’s first World Trade Center in Sector V and anticipate that top-tier brands will establish their offices in this prestigious World Trade Center,” he added.

The city’s residential market also reflected strong momentum. Average housing prices jumped 9% to ₹3,947 per sq ft. Sales of homes priced between ₹20–50 million surged 149%, from 180 units in Q1 2024 to 448 units this year. However, homes priced under ₹5 million remained dominant, accounting for 41% of total residential sales with 1,598 units sold.

Despite a leasing slowdown, Kolkata’s office market resilience signals renewed investor confidence. With improving infrastructure, increasing occupier interest, and landmark developments in the pipeline, the city is fast reclaiming its position as a serious contender in India’s commercial real estate landscape.