ASIA PACIFIC OUTLOOK 2025

KOLKATA

KEY MESSAGES

Supply

Demand

Rents

Key Outlook

Flight to quality is a key trend in the Kolkata market. Most of the Grade A, under-construction projects, especially in the prime office corridors of Salt Lake Sector V and Rajarhat, are incorporating modern amenities, technology solutions and sustainability features.

New supply of 0.8 msf in 2024 has been recorded across submarkets including Salt Lake Sector V and Park Circus Connector. Over 2 msf of new supply is expected in 2025, including expansion of a property owned by Brookfield India REIT.

Net absorption remained strong in 2024, crossing the 1 msf mark for the second consecutive year. Healthy net absorption is expected in 2025 and 2026. Vacancy is expected to fall below 20% by 2027, continuing its trend of decline on the back of healthy demand from IT-BPM and professional services occupiers.

Rents are forecast to grow by less than 1% in 2024; rental growth will remain in the 1%–2% range during 2025–2027 as rising tenant demand is offset by significant new supply. This movement will take rents to INR618 per sq ft per year at the end of 2024 and subsequently to more than INR645 per sq ft per year by 2027.

Expansion of the flex segment is also expected to remain a key growth driver in the coming years.

The market remains tenant - favourable in 2024 and is likely to remain so in the near term.

Cushman & Wakefield

ASIA PACIFIC OUTLOOK 2025