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Kolkata's real estate market remained stable in the third quarter, with residential property prices rising 8 per cent YoY, driven by genuine end-user demand and preference for quality developments. Sales volume grew by 2 per cent, with buyers focusing on reputed developers and well-connected areas. The office segment also performed steadily, particularly in IT outsourcing and flexible workspaces, with 0.5 million sq ft of transactions reflecting 190 per cent YoY growth. Tight supply of Grade A offices pushed average rentals up by 14 per cent, the highest among major cities.
The residential real estate market in Kolkata maintained stable performance in the July-September quarter, with average property prices rising by 8 per cent year-on-year, according to a report by Knight Frank India. The growth is mainly supported by genuine end-user demand and a preference for quality developments. The quarter also recorded a modest 1 per cent increase in prices compared to the previous quarter, while sales volume grew by 2 per cent YoY, with a total of 4,374 units sold during this period. Advertisement
Joydeep Paul, Senior Director of Occupier Strategy and Solutions at Knight Frank India in Kolkata, said the 8 per cent residential price growth confirms the market's underlying strength. He emphasized that this increase is driven by sustained activity from actual buyers rather than speculative investments. He also highlighted that buyers are increasingly prioritizing projects from established developers and areas with strong infrastructure, connectivity, and amenities.
Among major Indian cities, Kolkata's 8 per cent YoY residential price growth placed it in the mid-range. It outperformed Mumbai and Pune, which recorded 7 per cent and 5 per cent growth respectively, but remained below top performers like the National Capital Region at 19 per cent and Bengaluru at 15 per cent. This indicates that while Kolkata is not leading the market, it has a steady and reliable growth pattern that attracts end-users looking for long-term value.
In the commercial real estate segment, the office market entered a consolidation phase after strong activity in the first half of the year. Demand remained stable, particularly from third-party IT outsourcing firms and flexible office space operators. Transaction volumes held steady at 0.5 million square feet during the quarter, reflecting a substantial 190 per cent increase compared to the same period last year, though from a lower base.
Tight availability of Grade A office spaces, combined with consistent demand, led to a 14 per cent year-on-year increase in average rental values. This growth was the highest among major cities tracked by Knight Frank and shows that premium office spaces in Kolkata remain highly sought after. Overall, both residential and office markets indicate a balanced and resilient real estate environment in the city.
Source PTI
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