Kolkata: Kolkata’s office real estate market recorded a significant upswing in leasing activity during the second quarter of 2025, driven by strong demand from Global Capability Centres (GCCs), particularly in the IT-BPM and professional services sectors, according to a report by global real estate consultant, Cushman & Wakefield.
The city registered gross leasing volumes (GLV) of 0.52 million square feet (msf) in Q2, doubling the previous quarter’s figure. Net absorption also rose by 5.4 per cent quarter-on-quarter to 0.39 msf. GCCs were the primary drivers of demand, accounting for nearly 70 per cent of the total leasing activity. Of this, the IT-BPM segment contributed 65 per cent, while professional services made up 12 per cent.
Salt Lake Sector V and Rajarhat were the dominant micro-markets, jointly comprising 93 per cent of the quarter’s leasing activity. Central Business District (CBD) areas such as Park Street and Camac Street contributed the remaining 7 per cent.
Despite the surge in leasing, Kolkata witnessed no new office supply in Q2 due to delays in receiving the occupancy certificate for a key project in Salt Lake Sector V. The lack of fresh supply led to a 140 basis point decline in the overall vacancy rate, bringing it down to 16.4 per cent citywide.
For the first half (H1) of 2025, GLV stood at 0.78 msf, marking a 22 per cent drop from the same period in 2024. Net absorption for H1 was also lower, declining by 11 per cent year-on-year. The IT-BPM segment remained dominant in H1, followed by engineering & manufacturing (17 per cent) and professional services (12 per cent). Rental rates remained stable during Q2. The average stock-weighted quoted rent stood at Rs 52 per square foot per month, with year-on-year figures showing marginal appreciation. No new office completions were reported in the year to date, though 0.74 msf of supply is anticipated in the second half of 2025.
Key leases during the quarter included Capgemini (300,000 sf) at Candor Techspace in Rajarhat and KPMG (23,830 sf) at Godrej Waterside in Salt Lake Sector V.