In Kolkata nine out of the 10 office space deals were for properties below 50,000 sq ft in 2022. Only one out of 10 was in the 50,000 -1 1alk sq ft size with none exceeding one lakh sq ft. Overall office space demand witnessed in the city grew from a little over 0.8 mn sq ft in 2021 in over 1.1 mn sq ft in 2022 a growth of 42% year -on-year.
Real-Estate Consultancy firm Knight Frank India that conducted the study revealed that Kolkata, the 57 deals in under 50,000 sq ft office space comprised 70% of the floor space transactions that has happened during the year with the remaining five deals of 50,000-1 lakh sq ft making for the remaining 30%. In 2021 around 84% of the floor space transactions were below 50,000 sq ft category with just 16% in the 50,000 sq ft to 1 lakh sq ft bracket.
In percentage terms, Kolkata clocked the highest ratio of small office space transactions, followed by Chennai at 57% and Mumbai 49%. The highest number of small office deals though was in Bengaluru at 247 followed by 185 in Pune.
Knight Frank India Senior Director East Abhijit Das said the office space demand in Kolkata has strengthened steadily in 2022 to clock the highest office space leasing total in the past three years.
During 2020 and 2021 the transaction volumes had reduced sustainability due to pandemic led mobility restrictions. In 2022 the office market in Kolkata could be coming out of the woods. In terms of the office space demand by different sectors, the IT sector’s share has grown despite the deferment of expansion plans by some players. Along with a hybrid work mode strategy, the IT sector occupiers continued to lease new office space to establish their office space to establish their office space footprint.