Kolkata’s commercial real estate market is experiencing an unprecedented boom, drawing significant interest from investors and businesses alike. According to a recent report by CBRE South Asia, office space demand in Kolkata reached a robust 1.3 million square feet in 2024, reflecting a slight but consistent increase from 1.2 million square feet in 2023. This growth comes at a time when major cities like Delhi-NCR, Chennai, and Pune have reported declining demand for office spaces.
The surge in Kolkata’s office leasing activity has been primarily driven by the IT sector, which accounted for a significant 52% of the city’s total absorption in the October-December 2024 period. The technology sector led with a 35% share of the demand, followed by the automobile industry and the research, consulting, and analytics sectors.
As businesses seek Grade-A office spaces with modern amenities, wellness features, and ESG compliance, Kolkata is becoming a preferred destination for companies and investors alike.
“The stability and growth of Kolkata’s commercial real estate sector are commendable,” said Sushil Mohta, President of CREDAI West Bengal and Chairman of Merlin Group. “The demand for Grade-A office spaces is increasing steadily, driven by companies’ need for efficient, modern workplaces. With ongoing infrastructure development and a rising interest from large domestic players, the future of Kolkata’s commercial real estate looks very promising.”
CBRE’s report highlights that gross leasing volume, a key indicator of market activity that includes fresh take-ups, open market renewals, and pre-leasing, has remained stable at 1.7 million square feet for two consecutive years in Kolkata. This stability reflects the city’s growing appeal as a commercial hub.
Suparna Mucadum, Head of Marketing and Brand Custodian, Keventer Group, added, “The IT sector’s robust expansion and the government’s continued focus on infrastructure development are transforming Kolkata into a prime hotspot for business investments. Our project, Keventer One, is a testament to this trend, offering unparalleled features to meet the demands of modern businesses. The consistent leasing volumes in the city underscore the sustained and growing interest in Kolkata’s commercial real estate market.”
Major real estate developers like the Merlin Group, Ambuja Neotia Group, and others are capitalizing on this momentum by launching cutting-edge commercial projects. The city’s focus on infrastructure development, such as road expansions, metro connectivity, and the advent of smart city initiatives, has further strengthened its appeal.
“The market will only grow stronger as companies prioritize ESG-compliant, future-ready workplaces,” added a representative of the Ambuja Neotia Group.