Kolkata’s office space market saw significant growth in 2024, driven by the establishing central IT offices and increased leasing activity in sectors like IT-BPO, consulting, and BFSI. Despite gross leasing volumes (GLV) holding steady at 1.7 million sq ft, net leasing hit a record 1.5 million sq ft, surpassing the pre-pandemic peak of 1.4 million sq ft in 2019. This growth is attributed to a strong demand for premium office spaces and significant transactions in the city.

Cushman & Wakefield projects Kolkata’s gross leasing to reach 2 million sq ft in 2025, with net leasing expected to hit 1.7 million sq ft. “The growth of leasing space in Kolkata has also spurred activity in other eastern cities like Bhubaneswar and Guwahati,” said Santanu Ghosh, Executive Director and Head of East Tenant Representation at Cushman & Wakefield. The IT-BPO and BFSI sectors and consulting firms dominated demand, reflecting Kolkata’s emergence as a key player in India’s commercial real estate market.

Key Transactions in 2024

Several notable leasing transactions defined Kolkata’s office space market in 2024. Companies such as HDFC leased 3.25 lakh sq ft at Candor, while Capgemini took up 1,400 workstations at Technopolis through Urban Work. Concentrix secured 87,000 sq ft, and Tech Mahindra leased 1.07 lakh sq ft at Candor. Other significant deals included E&Y leasing 1.18 lakh sq ft at Omega and RSM occupying 43,000 sq ft at Candor. These transactions highlight the diverse occupier profile contributing to the city’s leasing activity.

Supply Challenges and Future Pipeline

While demand remained strong, Kolkata’s office space market faced supply challenges. Delays in new projects, including Park Circus Connector and Salt Lake Sector V developments, limited growth potential in 2024. “Kolkata could have witnessed higher growth if there were more new office space supply,” Ghosh noted. However, a robust pipeline for 2025 is expected to alleviate these constraints.

Upcoming projects in 2025 include the World Trade Center (0.6 million sq ft), Merlin The Summit (0.5 million sq ft), and Emami Business Bay (0.3 million sq ft) in Salt Lake Sector V. In New Town, major additions include Orbit Urban Park (0.9 million sq ft), Baytown (0.4 million sq ft), and ITC MXD (0.3 million sq ft). The central business district will see projects like Intellia (1 million sq ft) and Keventer One (0.5 million sq ft). This influx of Grade A office spaces is expected to meet the rising demand for premium, well-equipped workplaces.

Kolkata’s Role in India’s Office Leasing Growth

Kolkata’s performance contributed to India’s record-breaking 2024 office leasing volume of 89 million sq ft across eight major cities, a 19% increase from 2023. Net absorption nationwide reached 50 million sq ft, surpassing the pre-COVID peak in 2019 by 7 million sq ft. The city’s strong leasing activity reflects its growing importance in India’s commercial real estate landscape.

A Promising Outlook for 2025

With nearly 5 million sq ft of office space set to be added over the next two years, Kolkata is poised for continued growth. The addition of high-quality office spaces and the ongoing expansion of the IT, consulting, and BFSI sectors will further strengthen the city’s position as a key commercial hub in eastern India. As demand remains robust and new supply comes online, Kolkata’s office market is expected to flourish in 2025, contributing to India’s sustained dominance in global office leasing.