Kolkata MarketBeat Reports

Kolkata recorded gross leasing volumes (GLV) of 0.79 MSF in Q2, a 3.5x jump on q-o-q basis. GLV in H1 2024 stood at over 1 MSF, a 19% growth as compared to H1 2023. The IT sector drove space take up with 35% share. Rajarhat dominated with 76% share in quarterly leasing, while Salt Lake Sector V accounted for 23% share. A supply of ~ 0.8 MSF is expected in the current year. Net absorption was recorded at 0.78 MSF compared to 0.1 MSF in Q1 2024. City-wide rentals increased by 4-5% on a y-o-y basis.

Kolkata recorded retail leasing volumes of ~63,000 SF in Q2 2024, a near 60% growth q-o-q and a 45% expansion as compared to the same period last year. Malls comprised 35% of quarterly leasing volumes compared to 10% in Q1-24. Fashion segment comprised ~ 60% of quarterly leasing volumes followed by footwear and CDIT brands with 16% shares each. Headline mall vacancy rate remained stable at 6.8% q-o-q. Quoted mall rentals remained unchanged q-o-q. Rentals on main streets increased by 3-4% on a quarterly basis. Main street rentals witnessed a 3-4% rise from last quarter while the mall rentals largely remained unchanged.

Kolkata recorded 2,800 residential unit launches. Peripheral submarkets maintained dominance, accounting for nearly 75% of launches compared to 67% in Q2, 2023. Mid-segment comprised around 55% of quarterly launches, affordable segment contributed the rest. Nearly 57% of mid-segment launches were in peripheral submarkets. Affordable launches grew 82% y-o-y, spread across peripheral south and north Kolkata. Capital values increased 5-6% q-o-q across the north-east and southern submarkets. Capital values at peripheral submarkets remained constant. Rentals recorded 6-8% q-o-q growth across the north-east and south-east.

Kolkata saw over 1 MSF of warehouse leasing volume, a 20% growth over H2 2023. Third party logistics firms led with 44% share. E-commerce and retail sectors followed with shares of 18% and 17% respectively. NH16 submarket dominated with 62% share. NH19 and Old Delhi Road contributed 19% each to lease volumes. New warehousing supply of ~0.6 MSF was witnessed at NH19 and Old Delhi Road. Warehouse rentals recorded 4-5% y-o-y growth. Land rates increased by 10-12% y-o-y. Industrial rentals increased by 3-4% y-o-y while land rates increased by 5-7% y-o-y.

Q2 2024 witnessed massive investment inflows amounting to INR 231.5 Bn (USD 2.77 Bn), marking a 1.5x q-o-q growth. The Logistics & Industrial (L&I) segment led with 56% share.