Kolkata office rentals grew faster in last quarter: Study

Office rentals in Kolkata grew faster than that in other metro cities in the last quarter, points out a recent report by CB Richard Ellis, a commercial real estate services firm, headquartered in Los Angeles.

While rentals in grade A projects in the central business districts of Delhi increased by 4 per cent, quarter-on-quarter, in Mumbai it increased by 3 per cent, q-o-q, and in Kolkata by 10 per cent on a q-o-q basis.

In Bangalore, the increase was by 3 per cent, while in Pune it was 4 per cent.

The rentals in Chennai and Hyderabad remained constant when compared to the last quarter, the report said.

The report predicts that rentals will remain in check in the short to medium term due to ample supply expected across all micro markets.

“India’s rental market for office space is firming up on account of increase in demand and more enquiries converting into closures,” the report says.

The Central Business Districts (CBD) of Chennai, Pune and Kolkata witnessed substantial increase in enquiry levels and transaction velocity of mid-sized and small office format improved as compared to the last quarter.

The report says that across the seven cities a large number of companies are reviving their expansion plans, while demand is also increasing for SEZ office space.

Anshuman Magazine, Managing Director, CB Richards Ellis, said, “Over the past few months, there has been an improvement in commercial leasing activity primarily due to the revival of expansion and consolidation plans by several corporate occupiers. I believe that overall demand for office space will witness an improvement. Rental increase will remain in check in the medium term due to ongoing supply.”