KOLKATA: Kolkata’s warehousing market continued to show resilience in 2025, with leasing volumes reaching 4.6 million sq ft, according to Knight Frank India. While this marked a 30% year-on-year decline from 6.5 m sq ft in 2024, the moderation was attributed to elevated land prices and limited availability of Grade A facilities, rather than any structural weakness in demand. Backed by improving infrastructure and evolving occupier requirements, the market remains positioned for a rebound in the coming quarters.Third-party logistics (3PL) and e-commerce remained the key demand drivers, together accounting for over half of total leasing activity. E-commerce held a 22% share, supported by sustained consumption and the need to strengthen last-mile delivery networks. The 3PL segment, while still the largest contributor, saw its share soften to 32% from 42% a year earlier, reflecting shifts in occupier strategies and consolidation of space requirements. Manufacturing emerged as a notable growth engine, recording a 7% YoY increase in leasing and expanding its share to 21% from 13% in 2024, indicating rising momentum from industrial occupiers in the region.On the supply and location front, Dankuni and its suburbs retained leadership, capturing 60% of total leasing in 2025, aided by its strategic position along the Durgapur Expressway and NH 19, labour availability, and strong regional connectivity. The National Highway 16 (Old NH 6) cluster increased its share to 40% from 38%, supported by improving Grade A supply and connectivity advantages. Taratala-Maheshtala and Andul Road did not record leasing activity during the year, underscoring the constraints posed by limited large land parcels and modern warehousing stock in certain city clusters.Rentals remained steady, reflecting continued occupier confidence despite the slowdown in transaction volumes. Grade A rents in the NH 16 (Old NH 6) cluster ranged between INR 18–27/sq ft/month, while Dankuni and suburbs recorded INR 18–25/sq ft/month. Taratala-Maheshtala and Madhyamgram-Barasat continued to command higher rental ranges, largely due to land scarcity and proximity advantages, with rents at INR 27–30/sq ft/month and INR 27–35/sq ft/month respectively.Knight Frank India noted that with ongoing infrastructure upgrades and continued expansion by manufacturing and e-commerce players, Kolkata is expected to regain leasing momentum and further strengthen its role as the logistics gateway to eastern and northeastern India.
