Kolkata: Kolkata’s office market saw a sharp upswing in Q1 2026, with transactions rising 125 per cent year-on-year and rental values posting the highest growth among major cities, according to Knight Frank India.
Office transactions doubled to 0.4 million sq ft from 0.2 million sq ft a year ago. Average rents rose 15 per cent year-on-year to Rs 48.3 per sq ft per month. Vacancy levels declined by nearly 500 basis points to 28.8 per cent from 34.1 per cent.
Flexible workspace leasing drove activity, accounting for 79 per cent of transactions, with flex absorption jumping 235 per cent to 0.3 million sq ft. Large enterprises held an 81 per cent share, followed by SMEs (11 per cent) and startups (8 per cent). Third-party IT firms accounted for 54 per cent of flex seats, in line with industry data showing a 56 per cent IT share. Salt Lake and New Town remained key hubs.
“Flex space transactions have increased sharply… Kolkata is transitioning into a rapidly expanding flex market,” said Joydeep Paul, senior director - Occupier Strategy and Solutions and Industrial & Logistics, Knight Frank India
Saket Mohta, managing director of Merlin Group, said despite global uncertainties, growth signals strength. He added that while flex operators are driving demand, the entry of GCCs and tech firms could boost the market further. Salt Lake and New Town are emerging hubs, with the World Trade Centre in Sector V already seeing high occupancy.
On the residential front, Kolkata bucked a 4 per cent decline across eight cities, registering a 5 per cent rise in sales to 4,043 units, with 3,475 launches. Prices rose 3 per cent to Rs 5,937 per sq ft.
Unsold inventory fell 7 per cent to 19,062 units, and quarters-to-sell improved to 4.4 from 5.0. The Rs 5 million and below segment led with 1,514 units (37 per cent), followed by Rs 5–10 million at 1,465 units (36 per cent, up 8 per cent). The Rs 50–100 million segment grew 163 per cent to 50 units, while the Rs 100–200 million segment saw 13 units sold.