Calcutta Office Rents Soar 16% on Surging Demand, Low Supply

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AuthorAnanya Iyer|Published at:
Calcutta Office Rents Soar 16% on Surging Demand, Low Supply
Overview

Calcutta's office rents jumped 16% in 2025, reaching ₹48 psf, driven by a surge in leasing by Indian businesses and flex space operators. Occupancy climbed amidst scarce new supply, with over 2 million sq ft transacted. Despite the sharp percentage gains, Calcutta remains affordable compared to other major Indian cities, though transaction volumes lag behind hubs like Bengaluru.

Rent Surge Amidst Supply Squeeze

Calcutta's prime office space rents saw a substantial 16% increase in 2025, marking the steepest percentage rise among India's major cities. This surge coincided with leasing activity crossing the 2 million square feet threshold, a milestone not achieved in nearly a decade. Occupancy levels climbed significantly as new office property supply remained notably constrained.

Consultancy Knight Frank reported the average office rent in Calcutta reached ₹48 per square foot. The city witnessed a 69% jump in leasing volumes last year compared to 2024, with the second half of the year showing an even stronger 78% growth. Despite these sharp percentage increases, Calcutta's office market remains one of the most affordable in the country when compared on absolute rental values and leasing volumes to other major surveyed cities, trailing only Ahmedabad.

Demand Drivers Differ

A distinctive feature of Calcutta's office leasing market in 2025 was the absence of Global Capability Centres (GCCs), which typically drive significant demand in other Indian metros. Instead, Indian businesses and flex office space operators were the primary occupiers in the city. Nationally, GCCs account for 38% of India's office space consumption and are key growth drivers in cities like Bengaluru, Hyderabad, Pune, Chennai, and Delhi.

National Market Trends

Across eight major cities, gross office leasing surged to 86.4 million square feet for the full year 2025. Bengaluru led this activity with 28.7 million square feet, representing a 58.9% growth and over ten times the volume seen in Calcutta. This national figure signifies a 20% year-on-year increase and surpasses the previous peak from 2024. The scale of activity reflects a 43% rise over pre-pandemic highs in 2019, indicating sustained occupier demand over the past four years.

New office space completions nationwide rose by 9% to 54.8 million square feet. However, Calcutta contributed virtually no new supply to this figure.

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