Kolkata’s real estate sector set for strong growth in 2023: CBRE

CBRE South Asia Pvt Ltd, a real estate services firm, predicts substantial growth in Kolkata's real estate sector. The Industrial and Logistics (I&L) sector is expected to achieve a 5-year high supply in 2023, reaching approximately 5.2 million sq ft. This surge is attributed to completed projects and heightened interest from corporations looking to establish their facilities in the city.

Kolkata's strategic location as an entry point to the country's east, along with its industrial prowess, has contributed to the sector's vibrancy. The I&L leasing in the city is estimated to maintain 2022 levels, touching around 3.5 million sq ft in 2023. The micro-markets of NH-2 and NH-6 have experienced significant growth, signifying the potential for further industrial and commercial activities, especially in areas like Dankuni and Singur.

Simultaneously, the residential market in Kolkata is poised for a 5-year high in sales and new unit launches in 2023. The projected sales are expected to exceed 18,600 units, while new launches are estimated to reach around 17,800 units. This surge underscores a strong demand for homeownership, reflecting positive market sentiment propelled by economic growth and heightened consumer confidence.

Peripheral locations such as Rajarhat, New Town, Joka, Southern Bypass, EM Bypass, Lake Town, and BT Road are identified as the most attractive for new launches and sales in the residential segment.

CBRE, responding to this heightened market activity, has strengthened its presence in Kolkata by relocating to a more strategic location. This move aligns with CBRE's commitment to providing unparalleled real estate services in eastern India, including the northeast region. With a clear growth vision, CBRE aims to bolster its team over the coming years, reflecting its proactive approach to meet the rising demand and diverse needs of clients in the region.

Anshuman Magazine, Chairman and CEO India, South-East Asia, Middle East and Africa, CBRE, underlined the transformative phase in Kolkata's real estate landscape. He said, “Our observation of the Industrial and Logistics sector in Kolkata recording a 5-year high supply in 2023 with a notable absorption underscores the sector's resilience and dynamism. The anticipated absorption of 3.5 million sq ft in CY 2023 indicates a positive outlook for leasing activities, suggesting a potential surge in demand for commercial spaces.”

“Kolkata's residential market too has experienced a significant surge in sales and launches. This surge indicates strong demand and positive market sentiment, reflecting potential economic growth and heightened consumer confidence,” Magazine added.