According to a report by CREDAI-CBRE titled ‘West Bengal: Leading the Eastern Growth Story’, the city of Kolkata is expected to witness substantial growth in both the residential and commercial real estate sectors.
In terms of office space leasing, it is projected that Kolkata will see a demand of about 1-1.2 million square feet (msf) by the end of CY2023, with a supply of approximately 0.9-1.1 msf. Currently, the city has a total office space stock of over 34 msf. The Peripheral Business District (PBD) contributes the most to the office stock share, accounting for over 70 percent, followed by the Central Business District (CBD) with a 24 percent share and the Secondary Business District (SBD) with a 6 percent share.
The report also highlighted the significant growth in the residential sector. During the period of January to June 2023, East Kolkata accounted for 31 percent of the residential supply, followed by North Kolkata at 19 percent and South Kolkata at 16 percent. Affordable housing took the lead with a 45 percent share, followed closely by mid-range housing at 39 percent. High-end housing comprised 10 percent, while premium and luxury housing segments contributed a total of 6 percent.
Furthermore, when it comes to organized retail supply distribution, South Kolkata emerged as the leader with a 31 percent share, followed by East Kolkata at 24 percent. West Kolkata accounted for 17 percent, North Kolkata at 15 percent, and Central Kolkata at 14 percent.
Despite challenges faced by the e-commerce sector and global economic uncertainties, Kolkata has recorded a significant 8-12 percent share in Industrial & Logistics (I&L) leasing activity between April and June 2023.
It is worth noting that the state’s real estate growth trajectory has been boosted by the addition of quality supply, particularly in the I&L sector, which is expected to grow further at a rate of 9-10 percent this year.
Overall, the real estate market in Kolkata is witnessing a major uptick in both residential and commercial sectors. With increasing demand and promising growth prospects, the city is attracting the attention of realty companies from across the country.
Sources:
– CREDAI-CBRE report titled ‘West Bengal: Leading the Eastern Growth Story’
– Ram Chandnani, Managing Director, Advisory and Transactions Services, India, CBRE