Office space leasing, an indicator of the white collar job market, reached a nine-year high in Calcutta with 1.4 million-square-foot space absorbed in calendar year (CY) 2023.

The occupancy was led by India-facing companies that took up 75 per cent of the space, in sharp contrast to the rest of India where GCC (global capabilities centre) of foreign multinationals are one of the key drivers of occupancy.

Leasing activities in 2023 were higher 20 per cent over the previous year, according to a study published by Knight Frank on Tuesday. New office completions in the city surged 332 per cent YoY, reaching 0.8 million sq ft in 2023 — the highest volume recorded in the past five years.

The report indicated that there was an 11 per cent YoY increase in average office space rents in 2023, primarily driven by heightened demand for spaces in the city.

Abhijit Das, senior director — East — of Knight Frank India, said: The notable increase in rental values, particularly in the Salt Lake City micro market, can be attributed to significant occupier interest, constituting over 50 per cent of Calcutta’s total leasing volume.”