Kolkata, October 12, 2026: Average office rents in Kolkata rose 13 per cent year-on-year to Rs 52 per sq ft per month in the third quarter ending September, the fastest growth among India’s eight major markets, property consultant Knight Frank India said on Monday.
Vacancy dropped to 26.1 per cent in Q3 2026 from 31.9 per cent a year earlier and 43.5 per cent in Q3 2021, the property consultant said in its latest assessment of the Indian office market.
Office Transactions and Leasing Activity
Office transactions in the city totalled 1.50 million sq ft in the January-September 2026 period, down 9 per cent from the record 1.64 million sq ft in the year-ago period but the second-highest nine-month volume since 2018.
Quarterly leasing rose from 0.37 million sq ft in Q1 to 0.46 million sq ft in Q2 and 0.67 million sq ft in Q3, which was 27 per cent higher than a year earlier. New completions during the nine months stood at 0.28 million sq ft, against nil a year ago.
IT Services Lead Occupier Demand
Third-party IT services firms were the largest occupier group, leasing 0.57 million sq ft and accounting for 38 per cent of transactions. India-facing businesses accounted for 31 per cent and flex space operators 27 per cent.
By industry, IT/ITeS accounted for 47 per cent of transactions, followed by flex operators at 27 per cent and manufacturing at 15 per cent. Manufacturing’s share rose from 5 per cent in the first nine months of 2025, with leasing at 0.23 million sq ft.
Grade A Space Dominates Transactions
Grade A space accounted for 94 per cent of transactions, and rents were 37 per cent higher than in Q3 2019, Knight Frank said.
“IT services, India-facing businesses and flex operators remain important sources of demand, while manufacturing has gained ground. Rents have risen at the fastest pace among India’s major office markets, even as vacancy has declined to its lowest level since 2018,” said Joydeep Paul, branch head (Kolkata), Knight Frank India.