City’s office leasing sees spurt in H1 2024
Kolkata: The city’s office market witnessed an increase in office leasing volume with 0.7 mn sq ft of office spaces being transacted in first half (H1) of 2024 while the residential market sustained upward sales momentum during this period due to the continuation of stamp duty rebates alongside new launches across various price segments.
According to a report by the real estate consultancy firm, Knight Frank India, the office market saw a growth of 23 per cent in one year compared to H1, 2023. “This marks the highest half-yearly transaction volume recorded in the first half of any year since H1 2019. In particular, the share of the information technology sector expanded from 22 per cent of leasing volume in H1 2023 to 50 per cent in H1 2024. On the supply front, new office completions in the city were recorded at 0.3 mn sq ft in H1 2024,” read the report. During H1 2024, average office space rents increased by 6 per cent year-on-year (YoY), driven mainly by heightened demand in Rajarhat (New Town) and Salt Lake City Sector V. The rise in rental prices in these business districts is attributed to the scarcity of quality office spaces and desired tenant profile.
Abhijit Das, senior director – East, Knight Frank India said: “The active leasing by IT sector occupiers in the peripheral business district of Rajghat made H1 2024 the best performing half-year for Kolkata’s commercial market since H1 2019.
The surge in office space demand also resulted in a 6 per cent increase in average transacted rent values during this period. The strengthening domestic economic environment is expected to sustain demand from India-facing businesses in the second half of 2024 as well.” Meanwhile, the report also cited that in H1 2024, Kolkata’s residential real estate market experienced strong homebuying demand with 9,130 residential units sold during this period, marking a healthy 25 per cent YoY growth in sales volume. The continuation of the stamp duty rebate, along with new launches across various price segments, helped the market maintain its upward sales momentum.
Healthy homebuying demand led to a significant increase in new residential launches too. “The city saw a remarkable 60 per cent YoY growth in new launches, with 10,829 units introduced compared to 6,776 units in H1 2023, as developers added fresh inventory to meet the rising demand. While both residential sales and launches experienced positive annual growth in 2024, the growth rate in launches surpassed that of sales in the first half of the year,” the
report claimed.
Das said: “With new launches across various price segments, helped maintain upward sales momentum during this period. Developers have introduced new inventory to meet the increased demand in the mid-segment and
premium categories.”
