Kolkata, Oct 5 : Kolkata recorded the highest rental value appreciation of 10 per cent YoY during Q3 2023 to INR 38.1 sq ft/month. The city recorded office space transactions of 0.3 mn sq ft, while the new completions were recorded at 0.8mn sq ft. according to Knight Frank India, leading international property consultancy.
During Q3 2023 the major occupier activity was driven by India facing business in Kolkata accounting to 61 pc of the area transacted, while Global Capability centres constituted 27 pc followed by flex office spaces at 12 pc of the area transacted.
The report cited that the top eight markets of India have recorded office transactions of 16.1 million square feet (mn sq ft) recording a growth of 17 pc YoY during Q3 2023. The elevated demand in the Indian office market reflects the confidence of occupiers as India continues to see economic stability despite global uncertainties. New office completions in Q3 2023 were recorded at 11.5 mn sq ft across the leading eight cities of India.
“The relative strength of the Indian economy continues to attract global corporate interest and is reflected in the recovering demand in the Indian office space market. The increasing incidence of GCCs being set up in the current quarter also points toward greater occupier commitment to the overall operational and business environment that India offers. Occupier demand has trended up well over the year and looks to be on course to exceed levels seen in the previous year. It is the broader economic forces of inflation and GDP growth that will take centre-stage in shaping the fortunes of the Indian office market in the next few month, ” Knight Frank India chairman Shishir Baija said.
Kolkata also witnessed the highest percentage gain in residential market activity in the country during Q3 2023. An exponential growth of 225 oc YoY in launches and 105 pc YoY in sales Kolkata witnessed robust growth in sales and launches which stood at 4,978 units (annual growth of 105 pc) and 3,772 units (annual growth of 225 pc) respectively during Q3 2023. The exponential growth during the quarter is largely owing to the pronounced base effect caused by the market transitioning into the RERA environment.
The average weighted price witnessed an increase of 7% YoY during Q3 2023 at INR 3,585/ sq ft During Q3 2023, 52% of the residential sales were in the ticket size of INR 5 mn and above. The ticket size between 5mn to 10mn and 10mn & above constituted 40 pc and 17 pc respectively of the sales volume in the market, the report said.
