Kolkata Residential Market Holds Steady at 7% YoY growth; Records 78% YoY Growth in Office Transaction in H2 2025: Knight Frank India
Kolkata, January 07, 2026: Knight Frank India, in its latest flagship report, India Real Estate: Office and Residential Market, July-December 2025 (H2 2025), presented Kolkata as a city that has successfully balanced growth with affordability. Among India’s eight key real estate markets, Kolkata continues to remain the second most affordable residential market at 22%, even as its office sector delivers a record-breaking performance and the housing market demonstrates improving depth, discipline and resilience.
At a time when several Indian cities are grappling with rising prices and affordability stress, Kolkata stands apart – offering cost-efficient real estate solutions for both occupiers and homebuyers, while steadily strengthening its market fundamentals.
Office Market Update: July – December 2025
Kolkata’s office market also delivered its strongest performance in over a decade in 2025, with annual leasing volumes rising sharply by 69% YoY to 2.3 mn sq ft, crossing the 2 mn sq ft threshold for the first time. Momentum remained robust in the second half of the year, as H2 2025 leasing surged 78% YoY to 1.2 mn sq ft, underscoring sustained occupier confidence.
MARKET SUMMARY
| Parameter | 2025 | 2025Change (YoY) | H2 2025 | H2 2025Change (YoY) |
| Transactions in mn sq ft | 2.3 | 69% | 1.2 | 78% |
| Average transacted rentin INR/sq ft/month | 47.5 | 16% | – | – |
Source: Knight Frank Research
This growth was primarily driven by flex space operators, India-facing occupiers and third-party IT services, signalling a shift towards agile, cost-efficient and technology-led workspace solutions. The dominance of Peripheral Business Districts (PBDs) remained entrenched, with Salt Lake City and Rajarhat New Town together accounting for over 95% of total leasing activity, reflecting occupiers’ clear preference for modern infrastructure and competitive rentals over traditional central locations.
End-use split of transactions
Source: Knight Frank Research
A defining feature of 2025 was the continued absence of new office supply, which significantly tightened market fundamentals. Vacancy levels declined sharply by 624 basis points YoY to 29.9%, while average office rents rose 16% YoY to INR 47.5 per sq ft per month, the highest rental growth recorded among the eight major Indian office markets. Importantly, this rental appreciation has occurred despite Kolkata remaining one of the most affordable office markets nationally, reinforcing its value proposition.
Joydeep Paul, Senior Director – Occupier Strategy and Solutions, Kolkata, Knight Frank India,said, “The H2 office market in Kolkata is a wonderful success story with record growth in the region. After the notable transaction volumes experienced in the first half, H2 continued the momentum. This performance reinforces Kolkata’s strategic appeal as a high-value, cost-effective hub for corporate occupiers, proving that the demand is structural and long-term, not merely cyclical.”
Residential Market Update: July – December 2025
Kolkata’s residential market in 2025 reflected a phase of consolidation, with H2 2025 sales growing 7% YoY to 8,806 units, indicating improving buyer sentiment. While full-year sales moderated marginally by 3% YoY to 16,896 units, developer confidence returned with new residential launches rebounding 38% YoY in H2 2025 to 8,098 units. Despite the recovery in launches, annual supply remained disciplined, enabling the market to steadily improve its health metrics.
Unsold inventory declined by 5% YoY to 19,630 units, reaching the lowest level recorded in the past decade, while Quarters-to-Sell (QTS) improved to 4.6 quarters, signalling a balanced demand–supply environment. Residential prices also increased by a measured 6% YoY, with the city’s average price at INR 4,037 per sq ft, making Kolkata the second most affordable residential market among the eight key cities tracked by Knight Frank India.
Kolkata Residential Market Summary
| Parameter | 2025 | 2025 Change (YoY) | H2 2025 | H2 2025 Change (YoY) |
| Launches (housing units) | 15,780 | -6% | 8,098 | 38% |
| Sales (housing units) | 16,896 | -3% | 8,806 | 7% |
| Average price in INR/sq ft | INR 4,037 | 6% | – | – |
Source: Knight Frank Research
Homebuyer demand in Kolkata during 2025 continued to remain largely end-user driven, with activity concentrated in the mid and premium segments. The INR 5–10 million and INR 10–20 million ticket categories together accounted for the majority of residential sales, reflecting buyers’ preference for well-located projects offering improved specifications and lifestyle amenities at accessible price points.
The sub-INR 5 million segment continued to see steady traction, with their share declining to 35% of total launches in 2025, compared to 60% in 2024, as a result of recalibration of supply toward mid and premium segments. While buyers increasingly gravitated towards slightly higher ticket sizes offering better long-term value, the INR 20 million and above segment remained niche but resilient.
Overall, the distribution of demand across ticket sizes underscores Kolkata’s position as a value-led residential market, where affordability continues to support depth of demand across categories without creating pricing stress.
Kolkata ticket size split comparison of sales
Source: Knight Frank Research
Joydeep Paul, Senior Director – Occupier Strategy and Solutions, Kolkata, Knight Frank India, said, “Kolkata’s 2025 performance in the residential space reflects a market that is quietly but decisively coming into its own. What is particularly compelling is that the city has managed to stay steady and remain affordable for homebuyers. This balance between growth and affordability is rare in today’s real estate cycle and positions Kolkata as a highly sustainable, value-driven market for the long term.”
