The Kolkata real estate market showed strong resilience and steady growth in Q3 2025, with property prices rising 8% year-on-year. The residential segment was driven by sustained end-user demand and preference for quality developments, while the office space segment saw growing rental values amid tight supply and stable demand.
Residential Market Sees Healthy Growth
According to Knight Frank India’s latest report, Kolkata’s residential property prices recorded an 8% year-on-year increase in Q3 (July to September) 2025. This reflects a solid market health supported by genuine buyer interest rather than speculative activity.
- Average price appreciation: 8% YoY
- Modest 1% quarter-on-quarter increase
- Sales volume grew 2% YoY, with 4,374 units sold
- Buyers increasingly prefer reputed developers and infrastructure-rich locations
This growth places Kolkata in a competitive position among Indian cities, outperforming Mumbai with 7% and Pune at 5%, but trailing leaders NCR (19%) and Bengaluru (15%).
Office Market Consolidates with Rental Growth
The office real estate segment in Kolkata entered a consolidation phase after a strong first half of the year. Stable demand came primarily from third-party IT outsourcing firms and flex space operators.
- Transaction volumes held steady at 0.5 million sq ft in Q3
- Remarkable 190% YoY growth in office leasing volumes (from a low base)
- Grade-A office supply remains tight, driving rental values up by 14% YoY—the highest among major Indian markets
The FlexInsights Take
Kolkata’s real estate market performance in Q3 2025 underlines a mature cycle powered by authentic demand, particularly in residential housing, where quality and developer reputation are key. The city’s steady residential price growth alongside aggressive office rental hikes signals investor confidence and robust occupier activity. With a tight Grade-A office space supply and growing interest from IT-related sectors, Kolkata is strengthening its profile as an emerging commercial real estate hub, poised for balanced growth between residential and office assets.
For real estate investors and developers, the focus on prime locations and quality projects will be crucial in sustaining momentum. Meanwhile, the commercial office space tightening presents opportunities for rental growth and expansion of flexible workspace offerings in the city.
