Kolkata’s CBD office rents climb 13% as city-wide vacancy hits a record low

Kolkata’s central business district and Off-CBD markets saw office rentals rise 13% year-on-year in the first half of 2026, reaching Rs 82 to Rs 115 per sq ft per month, as the city’s overall office vacancy fell to a record low of 27.5%.

The SBD-I and SBD-II markets each recorded 9% annual rental growth, at Rs 65-Rs 77 and Rs 65-Rs 98 per sq ft respectively, while Salt Lake City and Rajarhat New Town posted the strongest gains at 17% and 27% respectively. Across the city, average rentals rose 15% year-on-year to Rs 51.1 per sq ft per month.

The record-low vacancy came even as leasing volumes moderated, with office transactions totalling 8 lakh sq ft in January-June 2026, down 26% year-on-year following an exceptional 2025. No new office completions during the period helped keep vacancy low as existing Grade A stock continued to be steadily absorbed.

Saket Mohta, MD of Merlin Group, described the market as “fundamentally healthy, as reflected in rising rentals, lower vacancy and sustained occupier interest in Salt Lake and Rajarhat.”