Kolkata sees record office space leasing amidst national surge
Times of India | 7 October 2025The technology sector has been the primary driver of this growth, accounting for 60% of the total space leased out in the July-Sept quarter. Other significant contributors include research, consulting and analytics firms (14%), as well as flexible space operators (11%).
Despite this robust demand, Kolkata's office market faces challenges. There is a scarcity of available space in Grade A office buildings (the most sought-after ones), and while demand is high, rental and sales prices remain relatively low compared to other major Indian cities.
This discrepancy is attributed to rising construction and land costs, which have deterred new commercial projects. Developers are increasingly favouring residential projects, where values are higher, over commercial office spaces.
CREDAI Kolkata president Apurva Salarpuria said Kolkata appears poised to clock annual leasing of 2 million square feet in a year. "If that doesn't happen this year, it most definitely will next year.
Office leasing is on the upswing in Kolkata with many offices, particularly in the IT sector, deciding to set up facilities here so that the workforce that hails from Kolkata works in facilities here rather than in Bengaluru or Hyderabad," he explained.
Sushil Mohta, president of CREDAI West Bengal, expressed optimism about the future, stating, "I'm confident that next year, we will see per square foot prices in the five-digit range, which will provide some margin to developers."
On a national scale, India has seen a record 59.6 million square feet of office space leased in the first nine months of 2025. Technology companies have led the charge, maintaining the highest share of office leasing activity.
Anshuman Magazine, chairman & CEO of CBRE for India, South-East Asia, Middle East & Africa, commented on the national trend, saying, "This record-breaking performance reflects the resilience and evolving dynamics of India's commercial real estate sector.
As occupiers seek future-ready spaces, sustained preference for flight-to-quality assets continues to anchor this momentum."
Bengaluru has emerged as the leader in office space absorption, accounting for 25% of the total with 15.1 million square feet leased. Mumbai and Delhi-NCR follow closely, with 10.6 million and 10.2 million square feet leased, respectively. Together, these three markets represent 61% of the overall office leasing activity in India.
Global Capability Centres (GCCs) have been pivotal in driving office demand, accounting for nearly 39% of total leasing. Technology firms, flexible space operators and BFSI (banking, financial services and insurance) companies collectively represent 60% of the leasing activity.
Ram Chandnani, managing director of Leasing at CBRE India, highlighted the importance of GCCs, stating, "GCCs will remain pivotal to office absorption, accounting for 35-40% of total leasing in 2025. While US firms currently dominate the GCC landscape, rising interest from EMEA and APAC occupiers is anticipated to widen the demand base."
