‘City records 16% growth in office space leasing in 2023’

Kolkata: Kolkata has recorded a nine-year high in office leasing in the year 2023 with the city achieving 16 per cent growth in sales in this calendar year.

Fuelled by occupier interest across various sectors, the city experienced the leasing of 1.4 million sqft of office spaces, marking a substantial 20 per cent year-on-year (YoY) growth compared to 2022. Notably, new office completions in the city surged by an impressive 332 percent YoY, reaching 0.8 million sq ft in 2023—the highest volume recorded in the past five years.

Knight Frank India’s latest report, the India Real Estate - Residential and Office Market Report (H2 2023) cited that throughout the calendar year, Kolkata’s residential real estate market experienced strong demand from homebuyers, driven by the continuation of the stamp duty rebate. The market witnessed the sale of 14,999 residential units, reflecting a significant 16 per cent growth in sales volume over 2022.

The robust demand for home buying in 2023 prompted a substantial increase in new residential launches within the market. There was a notable 28 per cent year-on-year growth in new launches compared to 2022, as developers introduced fresh inventory to meet the surge in demand.

In 2023, there was an 11 per cent YoY increase in average office space rents, primarily driven by heightened demand for office spaces in the city. Some business districts, such as Salt Lake also experienced double-digit YoY rental growth in this period. Additionally, Rajarhat New Town has experienced robust rent growth in 2023, emerging as the second-most favourable option for office space occupiers in Kolkata over the years.

In terms of the office spaces transacted, India facing businesses in Kolkata occupied 75 per cent of the areas leased in 2023. The Peripheral Business District, comprising the micro-market of Salt Lake City – Sector V, witnessed the most substantial rental surge, reaching 14 per cent.

Abhijit Das, Senior Director – East, Knight Frank India said: “The commercial market in Kolkata is now witnessing a consistent rise in transactions exceeding half a million with significant engagement from India facing business as Kolkata remains the gateway to eastern and north-eastern India.”