Flex operators drive 40% of Kolkata’s office leasing as demand shifts

Flex operators were the single largest driver of Kolkata’s office leasing activity in the first half of 2026, accounting for 40% of transactions, followed closely by third-party IT services companies at 36%, according to commercial real estate data for the city.

The demand pattern came even as overall office transactions fell to 8 lakh sq ft for the January-June period, down 26% year-on-year, as occupiers took a more cautious approach following a record leasing year in 2025 and large-format deals remained scarce. Vacancy, however, dropped to 27.5% — its lowest recorded level — helped by the absence of new office completions during the period.

Average rentals across the city rose 15% year-on-year to Rs 51.1 per sq ft per month, with Salt Lake City and Rajarhat New Town together accounting for nearly 94% of total transactions. Salt Lake City posted 17% rental growth while Rajarhat recorded the sharpest increase at 27%.

“While overall transaction volumes moderated due to the absence of large-sized deals, occupier demand remained resilient across the city’s key business districts,” said Joydeep Paul, senior director at Knight Frank India.