Kolkata Office Rents Rise 13 Per Cent To ₹52 Per Sq Ft, Fastest Among India's Major Markets: Knight Frank

Kolkata's office rents surged 13 percent year-over-year to Rs 52 per square foot in Q3 2026, according to Knight Frank India. This marked the fastest growth among India's eight major markets, with vacancy dropping to 26.1 percent from 31.9 percent a year earlier. Office transactions totaled 1.50 million square feet in the first nine months of 2026, a 9 percent decline from the previous year's record, but the second-highest in the past nine years.

Quarterly leasing rose from 0.37 million sq ft to 0.67 million sq ft, a 27 percent increase compared to the same period last year. IT services firms led occupier demand, leasing 0.57 million sq ft, accounting for 38 percent of transactions. India-facing businesses contributed 31 percent, while flex space operators accounted for 27 percent.

IT/ITeS sector led transactions at 47 percent, followed by flex operators at 27 percent and manufacturing at 15 percent. Manufacturing's share increased from 5 percent in the first nine months of 2025, with leasing at 0.23 million sq ft. Grade A space dominated transactions, comprising 94 percent of deals, and rents were 37 percent higher than in Q3 2019.

IT services, India-facing businesses, and flex operators remain significant demand sources, while manufacturing has gained ground. Property consultant Knight Frank India noted that rents have risen at the fastest pace among India's major office markets, despite vacancy reaching its lowest level since 2018.