Kolkata Commercial Real Estate Market Maintains Its Good Run
More investors and companies are lining up to buy office space in Kolkata in recent times. The city’s commercial real estate market has been doing very well, with record absorption figures for last year, as outlined in several reports. Additionally, from office space for sale near Ruby Kolkata like Primarc Chambers and other projects to emerging hotspots like Rajarhat-New Town, there is steady demand for quality A-grade business spaces along with commercial real estate in several other categories. On that note, here are a few key developments that illustrate how the commercial realty market in Kolkata is continuing the positive momentum.
Kolkata Shines in Industrial and Warehousing Absorption
In a key testament to the growth of the commercial real estate market in Kolkata, the City of Joy was the fifth leading city for H1 2023 in terms of the absorption of warehousing and industrial space. Demand was robust in this period, with 1.3 million sq. ft. of net absorption in the category based on JLL India reports. The industrial and logistics sector has witnessed steady growth countrywide over the last couple of years and Kolkata is no exception.
Being a major hub for logistics in East India, Kolkata is strategically located and connected to several major business regions. Kolkata is also a hotspot for several big distribution and manufacturing entities which is already spurring demand for quality industrial and warehousing space as per several reports. Third-party logistics providers are also playing a vital role in spurring demand, not just in Kolkata, but across the country.
New Data Centres On The Way
CBRE (Coldwell Banker Richard Ellis) South Asia has unveiled its plans to draw more investors for setting up a dedicated data centre hotspot in Kolkata. This segment is growing rapidly in the country and many such centres are expected to be developed in Kolkata in the near future, since it offers ample power and water supply. CBRE has previously anticipated a 5-year supply high of 5.2 million sq. ft. in Kolkata last year for the industrial and logistics segment. Multiple ongoing projects have neared completion not just in the city, but also in several adjacent zones.
With growth in retail and e-commerce across Kolkata, logistics and warehousing hubs are already being developed strategically at zones like Taratala, Dankuni, Maheshtala, Dhulagarh, and Uluberia, in addition to other places along the National Highways 6 and 2.
Emerging CBDs in Kolkata
There has been handsome demand for office space for sale near Ruby Kolkata. This has become one of the city’s newest upcoming CBDs (Central Business Districts) and several projects are in the pipeline, including ventures like Primarc Chambers and others. Several infrastructural initiatives are also on the way, including a new flyover for decongesting the area along with a skywalk that will link to the exit and entry gates of the new Ruby metro station on the Orange line of the Kolkata metro network.
This metro expansion has already enhanced the appeal of the destination as a commercial and business hub. The Orange line will connect Ruby to New Garia with five stations along the route, covering a major chunk of East Kolkata. At the same time, with New Garia connecting to the Blue Line (till Dakshineswar), this will automatically enhance connectivity and commuting for those living and working in the area. Several leading corporates and Government entities are already present in and near the Ruby area along with well-known schools, colleges, hospitals, and other establishments. It is well on its way towards becoming Kolkata’s next big CBD.
Another CBD that is flourishing is New Town-Rajarhat. This has become a hotspot for the IT and ITeS sector, along with other businesses spanning multiple categories. Proximity to the Kolkata International Airport and the Sector-V IT hub in Salt Lake are major plus points for the entire zone along with flyovers, wide roads, excellent civic infrastructure and rapidly growing social amenities.
Signing Off
Kolkata’s commercial real estate market is thus taking a hugely positive leap towards future growth and development. New CBDs are coming up in the city while infrastructural improvements and expansion are also contributing towards the growing appeal of the city for doing business. Here’s to an even brighter outlook for Kolkata’s commercial and business real estate segment in 2024 and beyond.