In 2024, Kolkata’s office leasing market saw a slight but steady increase, reaching 1.3 million square feet, up from 1.2 million square feet in 2023. According to a report by CBRE South Asia, the final quarter of the year witnessed a significant surge in leasing activity, with the IT sector accounting for more than half of the total office space absorption in the city.
Key Transactions and IT Sector Dominance
Several notable transactions occurred during the October-December period, emphasizing the role of the IT and technology sectors in driving the market forward. Concentrix leased 43,000 square feet at DLF IT Park, Visteon took up 20,000 square feet at DLF SEZ, and Surbana Jurong secured 6,700 square feet in Acropolis.
Economic Growth Boosts Commercial Real Estate
Sushil Mohta, President of CREDAI West Bengal and Chairman of Merlin Group, pointed out that the positive growth in 2024 was driven by the city’s overall economic development, rising disposable income, and increasing demand from a variety of sectors. The commercial real estate market saw a particularly strong performance, fueled by demand from both international businesses and local industries.
Kolkata: Emerging IT Hub
The IT sector stood out as the primary driver of growth, with Kolkata being increasingly recognized as the next major IT hub after Bengaluru, Hyderabad, and Pune. This shift is further supported by the West Bengal Government’s efforts to attract global businesses, resulting in continued leasing interest.
Future Outlook and Key Developments
Looking ahead to 2025, the outlook for office leasing remains optimistic, with key sectors like IT, technology, and BFSI expected to continue dominating. Additionally, landmark developments like the World Trade Centre being built by Merlin Group, which will be the largest IT park in Eastern India, are poised to further boost leasing activity.
Major Deal: DLF’s Sale of Kolkata Tech Park 1
In another major development, DLF’s sale of Kolkata Tech Park 1 to RDB Primarc Techno Park for approximately Rs 637 crore highlights the city’s growing appeal to investors. This transaction reinforces Kolkata’s position as an essential hub for the tech sector and paves the way for future growth.
As Kolkata continues to strengthen its commercial real estate landscape, 2025 promises to bring even greater leasing activity, particularly from the tech and IT sectors.
