Kolkata’s Warehousing Market Demonstrates Fortitude in 2025
Kolkata’s warehousing sector has showcased remarkable resilience in 2025, with leasing volumes reaching 4.6 million square feet, according to a report by Knight Frank India.
Although this figure represents a notable 30% decline from the 6.5 million square feet leased in 2024, the reduction is primarily attributed to soaring land prices and a scarcity of Grade A facilities rather than any fundamental weakness in demand.
Fostering this market’s viability are enhancements in infrastructure and the evolving needs of occupiers, which position it favorably for a potential rebound in the upcoming quarters.
Key Demand Drivers
- Third-party logistics (3PL) and e-commerce emerged as the primary demand contributors, together accounting for over half of the total leasing activity.
- E-commerce constituted a 22% share, buoyed by sustained consumer activity and the necessity to fortify last-mile delivery networks.
- The 3PL segment, while still the predominant player, saw a slight contraction in its share, decreasing from 42% to 32%, reflecting shifts in occupier strategies and space consolidation.
- Manufacturing has surfaced as a significant growth catalyst, achieving a 7% year-on-year increase in leasing, thereby expanding its share from 13% in 2024 to 21%.
Leasing Trends by Location
Regionally, Dankuni and its suburbs led the market, capturing an impressive 60% of total leasing in 2025. This success can be attributed to its advantageous location along the Durgapur Expressway and NH 19, coupled with abundant labor supply and robust regional connectivity.
Additionally, the NH 16 (Old NH 6) cluster increased its share to 40% from 38%, further fueled by enhancements in Grade A supply and geographical connectivity.
In contrast, areas such as Taratala-Maheshtala and Andul Road did not experience any leasing activity throughout the year, highlighting the limitations imposed by a shortage of large land parcels and modern warehousing stock within certain urban clusters.
Rental Dynamics
Despite the downturn in transaction volumes, rental rates remained stable, indicating persisting occupier confidence.
Grade A rents in the NH 16 (Old NH 6) cluster fluctuated between INR 18–27 per square foot per month, while Dankuni and its surrounding areas recorded rates of INR 18–25 per square foot per month.
Taratala-Maheshtala and Madhyamgram-Barasat commanded higher rent ranges, between INR 27–30 and INR 27–35 per square foot per month, respectively, primarily due to limited land availability and strategic location advantages.
Looking ahead, Knight Frank India anticipates that continued infrastructure enhancements, along with the steadfast expansion of manufacturing and e-commerce sectors, will reinvigorate Kolkata’s leasing momentum, further solidifying its status as the logistics nexus for eastern and northeastern India.
Source link: Timesofindia.indiatimes.com.
