Kolkata to Witness 1.2 Million Sq Ft of Office Leasing by Year-End: CREDAI-CBRE Report

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    The city of Kolkata is on the brink of a substantial surge in office leasing activities, with a projected 1-1.2 million square feet (msf) of office space expected to be leased by the end of 2023, as indicated by the recent CREDAI-CBRE report titled ‘West Bengal: Leading the Eastern Growth Story.’

    In contrast, the city is expected to offer a supply of approximately 0.9-1.1 msf within the same timeframe. Presently, Kolkata boasts an existing office space inventory exceeding 34 msf. The majority of this inventory is concentrated in the Peripheral Business District (PBD), contributing over 70 percent of the total office space. The Central Business District (CBD) follows with a 24 percent share, and the Secondary Business District (SBD) accounts for the remaining 6 percent, as outlined in the report.

    The unveiling of the CREDAI-CBRE report took place during the prestigious STATECON 2023, a prominent real estate event held on September 4 in Kolkata, with the esteemed presence of Chief Minister Mamata Banerjee. The primary goal of the event is to spotlight the real estate opportunities in West Bengal, attracting top realty companies from across the country.

    The report also underscores the significant growth in the residential sector, with East Kolkata leading the way, claiming a 31 percent share of the residential supply during the first half of 2023. North Kolkata contributed 19 percent, and South Kolkata accounted for 16 percent of the residential supply during the same period.

    Within the housing sector, affordable housing was the standout category, securing the largest share at 45 percent, closely followed by mid-range housing at 39 percent. High-end housing constituted 10 percent of the market, while premium and luxury housing segments collectively contributed 6 percent during the first half of 2023.

    Analyzing the organized retail supply distribution in Kolkata up to H1 2023, South Kolkata dominated with a 31 percent share, followed by East Kolkata at 24 percent, West Kolkata at 17 percent, North Kolkata at 15 percent, and Central Kolkata at 14 percent.

    Despite challenges such as an e-commerce leasing slowdown and global uncertainties, Kolkata demonstrated resilience by recording a noteworthy 8-12 percent share in Industrial & Logistics (I&L) leasing activity during April-June 2023.

    Ram Chandnani, Managing Director, Advisory and Transactions Services, India, CBRE, commented on the report’s findings, stating, “The real estate landscape in West Bengal, particularly in Kolkata, is in a phase where the addition of high-quality supply is bolstering demand, further propelling the state’s real estate growth trajectory. The I&L sector has shown promising growth and is projected to expand by 9-10 percent this year.”

    With this positive outlook for both the office and residential sectors, Kolkata continues to solidify its position as a key player in the Eastern real estate market.

    Also read: Knight Frank’s Report Reveals Ahmedabad, Kolkata, and Pune as India’s Top Affordable Housing Markets

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