Newtown-Rajarhat: Kolkata's emerging office hub

The Kolkata office market has shown remarkable resilience post-pandemic, recording 5.7 million sqft of gross absorption between 2022 and H1 2025. A significant shift has occurred within the market, with sub-markets Salt Lake and Newtown-Rajarhat now accounting for 49% and 40% absorption, overtaking traditional CBD and SBD sub-markets.

Newtown-Rajarhat has exhibited extraordinary growth, with gross leasing increasing 3.5-fold from 0.3 million sqft in 2022 to 1.03 million sqft in 2024. H1 2025 has already achieved 0.43 million sqft absorption. The IT & ITeS sector drives 47% of this demand, followed by BFSI at 31%.

Figure 1: Kolkata Gross Absorption

Source: JLL Research, 2025

With minimal new supply additions of 0.1 million sqft since 2022, the stock remains at 10 million sqft. This substantial demand-supply imbalance has reduced vacancy rates dramatically from 21.7% to 9.4%. Concurrently, gross rents increased by 33.3% over the past 42 months, rising from INR 40 to 53 per sqft/month.

Key assets driving this market include Candor TechSpace, Ecospace Business Park, RDB Primarc Tech Park, DLF SEZ, and Mani Casadona. Notable corporate occupiers include TCS, Capgemini, Cognizant, Genpact, Ericsson, and HDFC Bank.

Newtown-Rajarhat's office growth stems from comprehensive development across residential, retail, and infrastructure ecosystems.

Figure 2: Newtown-Rajarhat Occupier Share

Source: JLL Research, 2025

Figure 3: Newtown-Rajarhat Gross Rent & Vacancy Rate

Source: JLL Research, 2025

Newtown-Rajarhat serves as the focal point for Kolkata's residential landscape, featuring large-scale gated communities complemented by robust retail infrastructure. Newtown offers luxury residential properties, while Rajarhat primarily comprises affordable and mid-segment properties.

Notable completed residential developments include Amistad, Avenida, Newtown Heights, Rosedale Garden, and Shukhobrishti. Properties under construction include Lakescape, Vaanya, Urvisha, F Residency and Optima.

The expanding population is supported by 1.27 million sqft of malls. Notable developments include City Centre Rajarhat, Axis Mall, and The Galleria, with forthcoming development of 1.82 million sqft, including projects such as Baytown and Trayam.

The state government has established the "Bengal Silicon Valley Hub" on 200 acres, allocating land to IT & ITeS organisations for campus and data centre development, which are excluded from office supply and absorption metrics. STTelemedia and NTT have already initiated data centre operations, while facilities by Reliance, Adani, CtrlS, and Airtel Nxtra remain under construction.

Corporate expansion continues with ITC Infotech's 1.45 million sqft and Infosys Business Park's 0.3 million sqft campuses in 2024. The pipeline includes Wipro's 1.5 million sqft and LTI Mindtree's 3.85 million sqft campus developments.

The "Bengal Fintech Hub" spans 70 acres dedicated to financial institutions, including HDFC, Bandhan Bank, ONGC, National Insurance, and other organisations. While HDFC and Bandhan Bank are already operational, the remaining institutions are still in development phases. These financial facilities are excluded from standard office supply and absorption metrics.

Transportation infrastructure represents a critical advancement for Newtown-Rajarhat. The under-construction Orange Line Metro will establish connectivity from the north to East Newtown-Rajarhat and Salt Lake, eventually extending to the South and Western parts of Kolkata.

Roadway infrastructure improvements include a four-lane expressway connecting Newtown-Rajarhat in East to Madhyamgram-Barasat in North, projected to reduce transit times by half. Additionally, a seven-kilometer, four-lane elevated corridor linking EM Bypass to Newtown-Rajarhat will substantially improve East Kolkata’s connectivity with Central and South areas.

The Newtown-Rajarhat submarket anticipates continued expansion, bolstered by its established ecosystem and projected new supply of 2.18 million sqft by 2028. This growth is expected to stimulate further absorption and rent appreciation. While IT & ITES and BFSI will likely dominate the demand, co-working operators are emerging as key players in the managed office transaction segment.