Kolkata on a New High in Industrial & Logistics Sector

Buoyed by the completion of pent up projects in Kolkata and its peripherals, the industrial & leasing sector in the city is on the upswing amidst flurry of institutional investments and the year 2023  is set to be a promising year. 

According to a recent CBRE report, the Industrial and Logistics (I&L) sector in Kolkata will record a 5-year high supply in 2023 and  the total I&L supply in 2023 is likely to touch 5.2 mn. sq. ft. Kolkata’s strategic location as the entry point to the country’s east and further to land-locked countries such as Nepal and  Bhutan and the state’s industrial prowess has  been the major growth drivers.  Total I&L leasing in the city in 2023 is likely to touch 3.5 mn. sq. ft.,  sustaining 2022 levels. During the Jan-Sep’23 period total leasing in I&L sector in the city stood at 2.7 mn. sq. ft. The city has close to 10 mn. sq. ft. of Grade A logistics developments in NH-2, NH-6, and Taratala regions.

The I&L growth in the city has been primarily in the micro-markets of NH – 2 & NH – 6 due to strategic positioning along the National Highway, signifying the likelihood of further growth in both industrial and commercial activities, especially in Dankuni and Singur. Meanwhile, NH – 6 emerges as a multifaceted micro-market, encompassing industrial zones such as Dhulagarh and evolving areas such as Uluberia, reflecting a combination of industrial and residential development. In the Taratala micro-market, locations such as Taratala Road, Hyde Road going upto Maheshtala, there is a distinctive mix of industrial and commercial activities, indicating the potential for growth and progress in these areas.

According to Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE,  the current  real estate landscape in the state, particularly in Kolkata, is witnessing a transformative phase where the infusion of quality supply is fueling absorption, propelling the growth trajectory of the state’s real estate sector. Our observation of the Industrial & 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.

Parvez Khalid, Associate Executive Director, Advisory & Transaction Services, CBRE, adds that“over the past few years, the state government has been proactive in improving the prevailing business and real estate environment. Moreover, the growth of the construction sector and its real estate activity holds the state in good stead to unlock its employment generation potential. The raft of recent infrastructure developments in and around Kolkata, focusing on augmenting industrial infrastructure and developing new growth centers is expected to be a major contributor to that end.