Kolkata office market sees growth in Grade A assets, PBDs
Times of India | 5 August 2025
Kolkata: More than half of Kolkata's burgeoning office stock has been classified as Grade A, according to a report by property consultancy Knight Frank India (KFI) in its report "A Billion Sq Ft and Counting – India Office Supply Growth Story" released on Monday.
"This is a clear indication of the region's focus on quality-led development," said KFI senior director (occupier strategy & solutions) Joydeep Paul.
Further, 71% of Kolkata's office stock is now concentrated in peripheral business districts (PBDs) such as Salt Lake Sector V and New Town, underlining the city's structural shift from legacy central business districts (CBDs) to well-connected, cost-efficient suburban office corridors.
Kolkata currently accounts for 3% of India's total office space. But developers say that with Kolkata steadily evolving as a business destination, the share is set to rise.
In the past decade, the office market in Kolkata witnessed a compound annual growth rate (CAGR) of 3.2%, fuelled by infrastructure upgrades, increased interest from regional headquarters of national and global companies and rising occupier confidence.
"Kolkata may be smaller in terms of absolute office stock, but it's steadily building a strong foundation for future growth. With the majority of supply in PBDs and a growing share of Grade A assets, the city presents compelling opportunities for occupiers seeking quality spaces at attractive costs. The emergence of new corridors, and increased occupier diversification signal a positive shift in the market's trajectory," said Paul.
Demand in Kolkata was largely driven by IT/ITES, BFSI, flex spaces, and regional headquarters of national conglomerates. A growing startup ecosystem and rising interest from coworking players has added to the city's absorption pipeline.
While close to three-fourths of the office market stock concentrated in PBDs, traditional CBDs including Park Street, Camac Street, and Esplanade comprise 20% of the stock, while secondary business districts (SBDs) like EM Bypass, Topsia and Anandapur contribute 8%.
Though Kolkata's high Grade A office stock is in line with the national average, the city also held the highest share of Grade C stock among top office markets at 11%, highlighting the opportunity for asset upgrade and retrofitting to meet modern occupier expectations. Grade B stock comprised 37% of the city's total office space.
Kolkata continued to offer attractive rental economics, with CBD rents ranging from Rs 70–105/sq ft, SBDs from Rs 55–95/sq ft, and PBDs from Rs 27–65/sq ft, reinforcing its sub-dollar competitiveness in global benchmarks.