Kolkata’s office space leasing surged 33% in Q2 2024, reaching 0.4 million sq ft, driven by the tech and BFSI sectors. H1 2024 saw a 23% rise in office transactions and a 6% rent increase. Despite recent stamp duty changes, residential sales grew 25%, with 9,130 units sold.
Kolkata’s office space leasing market saw a significant surge in the April-June quarter of 2024, with absorption increasing by 33% year-on-year to 0.4 million square feet, according to the CBRE India Office Figures Q2 report. This growth was driven primarily by the technology sector, which accounted for 40% of the absorption, followed by BFSI (Banking, Financial Services, and Insurance) at 21% and flexible space operators at 10%.
“The office space leasing absorption in April-June 2024 was 0.4 million square feet against 0.3 million square feet in the year-ago period,” a CBRE official noted. This robust performance reflects the city’s growing appeal to various industries seeking office space.
Knight Frank India also reported significant growth in Kolkata’s office market, with 0.7 million square feet of office space transacted in the first half of 2024 (January-June). This represents a 23% increase compared to the same period in 2023, according to their report “India Real Estate: Residential and Office” (January-June 2024). Average office space rents in Kolkata rose 6% year-on-year during the first half of 2024, indicating strong demand.
Kolkata’s residential real estate market also experienced robust growth, with 9,130 residential units sold in H1 2024, marking a 25% year-on-year increase in sales volume. Continued stamp duty rebates and new launches across various price segments bolstered the market’s upward momentum. However, the state government has withdrawn the stamp duty and 10% rebate in circle rate effective July, which might impact future sales.
On a broader scale, CBRE reported that pan-India office leasing remained strong, with gross office leasing reaching 32.8 million square feet during the first half of 2024, a 14% increase year-on-year across nine cities. This nationwide growth underscores the continued resilience and attractiveness of the Indian office space market.
In conclusion, Kolkata’s office leasing market is experiencing significant growth, driven by key sectors such as technology and BFSI. With increasing office space absorption and rising rents, the city is becoming a key player in India’s commercial real estate landscape. The residential market also shows strong demand, although recent changes in stamp duty regulations may affect future sales. Overall, the outlook for Kolkata’s real estate market remains positive, reflecting broader trends across the country.
