Kolkata real estate market shows steady growth with price increase of 8% in July-September 2025: Knight Frank

The Kolkata housing market showed continued health and stability in the third quarter of 2025 (July-September quarter), registering a robust 8 percent year-on-year (year-on-year) increase in average prices, according to Knight Frank India’s latest report.

The report highlights that the city’s housing market is still primarily driven by real end-user demand and a ‘flight to quality’.

Supporting this trend, the quarter also saw a modest 1 percent quarter-over-quarter (QoQ) price increase and 2 percent year-over-year growth in sales volume, with 4,374 units sold.

“The confirmed 8 percent year-on-year increase in home prices in the third quarter of 2025 is a powerful indicator of the fundamental health of the market. This growth is not speculative; it is a direct result of continued end-user activity,” said Joydeep Paul, Senior Director – Occupier Strategy and Solutions, Kolkata, Knight Frank India.

He added that buyers are increasingly focusing on reputable developers and infrastructure-rich locations.

Among major Indian cities, Kolkata was in the middle bracket with 8 percent year-on-year price growth, outperforming markets such as Mumbai (7 percent) and Pune (5 percent), although lagging behind leaders such as NCR (19 percent) and Bengaluru (15 percent). The city’s office market, after a period of strong activity in the first half of the year, entered a phase of consolidation in the third quarter of 2025. The market saw stable demand, especially from the IT outsourcing and third-party flex space segments.

Although transaction volumes remained stable at 0.5 million square meters in the third quarter, this figure represented a significant 190 percent year-on-year growth, albeit from a lower base.

This sustained demand, coupled with the tight supply of high-quality office space, led to a remarkable 14 percent year-on-year increase in average rental value, the highest of any major market.