Kolkata, July 9 -- Kolkata's residential property market remained resilient in the first half of 2026, with housing sales rising despite fewer project launches, while the office market saw slower leasing but sharp rental growth, according to a Knight Frank India report.

Housing sales rose 3 per cent year-on-year to 8,368 units in January-June, while new launches fell 5 per cent to 7,316 units as developers remained cautious and project announcements slowed during the Assembly election period. Demand continued to be driven by affordable housing, improving connectivity and expanding infrastructure. Residential prices increased 5 per cent to an average of Rs 5,942 per sq ft, while unsold inventory fell 9 per cent to a record low of 18,578 units.

South Kolkata and Rajarhat dominated the residential market, accounting for nearly 60 per cent of new launches and over 62 per cent of sales. Buyer preference shifted towards higher-value homes, with the Rs 50 lakh-Rs 2 crore segments gaining market share, while luxury housing priced between Rs 5 crore and Rs 10 crore recorded the fastest growth, albeit on a small base.

The office market entered a consolidation phase after its strongest year in a decade in 2025. Leasing transactions declined 26 per cent year-on-year to 0.8 million sq ft due to the absence of large deals. However, vacancy fell to a record low of 27.5 per cent and average office rents climbed 15 per cent. Salt Lake and Rajarhat-New Town accounted for about 94 per cent of office transactions, with flexible workspace operators contributing 40 per cent of leasing, followed by third-party IT firms at 36 per cent.

CREDAI West Bengal president Sushil Mohta said the recent political change in Bengal has boosted investor sentiment, with industries expanding capacity and major Central infrastructure projects expected to strengthen growth.

These developments, he said, make the near-term outlook for Kolkata's residential and office markets promising, while healthy demand, rising rentals and strong traction from flex and technology occupiers reaffirm the city's long-term real estate potential.

Published by HT Digital Content Services with permission from Millennium Post.