‘Kolkata’s office rents grow by 10% YoY in Q3 2023’

Kolkata recorded the highest rental value appreciation of 10 per cent YoY during Q3 2023 to Rs 38.1 sqft/month.

According to a study by Knight Frank India, the city recorded office space transactions of 0.3 mnsqft, while the new completions were recorded at 0.8mn sqft.

During Q3 2023, the major occupier activity was driven by India facing business in Kolkata accounting to 61 per cent of the area transacted, while Global Capability Centres(GCC) constituted 27 per cent followed by flex office spaces at 12 per cent of the area transacted.

The report cited that the top eight markets of India have recorded office transactions of 16.1 million square feet (mnsqft) recording a growth of 17 per cent YoY during Q3 2023. The elevated demand in the Indian office market reflects the confidence of occupiers as India continues to see economic stability despite global uncertainties. New office completions in Q3 2023 were recorded at 11.5 mnsqft across the leading eight cities of India.

Shishir Baijal, chairman and managing director, Knight Frank India, said: “The relative strength of the Indian economy continues to attract global corporate interest and is reflected in the recovering demand in the Indian office space market.

The increasing incidence of GCCs being set up in the current quarter also points toward greater occupier commitment to the overall operational and business environment that India offers.

Occupier demand has trended up well over the year and looks to be on course to exceed levels seen in the previous year. It is the broader economic forces of inflation and GDP growth that will take centre-stage in shaping the fortunes.”