Kolkata office rents rise 15% even as leasing activity cools from 2025’s record year

Kolkata’s office market saw average rentals rise 15% year-on-year in the first half of 2026, reaching Rs 51.1 per sq ft per month, even as leasing activity moderated following a record year in 2025.

Office transactions stood at 8 lakh sq ft in January-June 2026, down 26% year-on-year, as occupiers adopted a cautious approach and large-format deals remained limited. Despite the slowdown in volumes, vacancy fell to 27.5% — its lowest recorded level — supported by no new completions during the period and steady absorption of existing Grade A stock.

“Following the exceptional leasing activity of 2025, Kolkata’s office market experienced a phase of consolidation. While overall transaction volumes moderated due to the absence of large-sized deals, occupier demand remained resilient across the city’s key business districts,” said Joydeep Paul, senior director at Knight Frank India.

Flex operators were the largest demand driver at 40% of leasing activity, followed by third-party IT services at 36%, reinforcing what analysts describe as Kolkata’s broader shift towards quality-led office demand.