Kolkata: City’s office market saw average rentals rise 15% year-on-year in the first half of 2026 to Rs 51.1 per sq ft per month, even as leasing activity moderated following a record year in 2025.Office transactions stood at 8 lakh sq ft in Jan-June 2026, down 26% year-on-year, as occupiers adopted a cautious approach and large-format deals remained limited.Despite the slowdown in volumes, vacancy fell to 27.5% — its lowest recorded level — supported by no new completions during the period and steady absorption of existing Grade A stock.Salt Lake City and Rajarhat New Town dominated, accounting for nearly 94% of total office transactions. Salt Lake City recorded 17% rental growth, with values ranging from Rs 52 to Rs 67 per sq ft per month.Rajarhat New Town saw the sharpest growth at 27%, with rentals between Rs 42 and Rs 62 per sq ft per month. The CBD and Off-CBD markets rose 13% to Rs 82-Rs 115 per sq ft, while SBD-I and SBD-II each recorded 9% annual growth, at Rs 65-Rs 77 and Rs 65-Rs 98 per sq ft respectively.Flex operators were the largest demand driver at 40% of leasing activity, followed by third-party IT services at 36%. The strong rental growth in Salt Lake City and Rajarhat New Town reinforced Kolkata’s shift towards quality-led office demand.“Following the exceptional leasing activity of 2025, Kolkata’s office market experienced a phase of consolidation. While overall transaction volumes moderated due to the absence of large-sized deals, occupier demand remained resilient across the city’s key business districts,” said Joydeep Paul, senior director, Knight Frank India.Saket Mohta, MD of Merlin Group, said the market remained “fundamentally healthy, as reflected in rising rentals, lower vacancy and sustained occupier interest in Salt Lake and Rajarhat.”
