Lucknow: Rising hub for industry & logistics

07 Aug 2023 CW Team

According to property consultant CBRE, that the Lucknow region was emerging as a significant industrial and logistics center in North India, following Delhi-NCR. The consultant estimated that the warehousing sector would create around 70,000 direct employment opportunities over the next five years.

CBRE South Asia stated that in the last five years, leading players such as Amazon, Mondelez, and Flipkart had invested approximately Rs 4 billion in the Lucknow region. Furthermore, an additional investment of about Rs 700 million was anticipated for warehouse development in the city.

The demand for high-quality warehousing space had been consistently increasing in Lucknow over the past five years, reaching peak levels in FY23. The total leasing of warehousing space in the Lucknow region during 2022-23 was recorded at 0.18 million sq ft, as compared to 0.11 million sq ft in the previous year.

At present, the Lucknow region boasted a total warehouse stock of 5.2 million sq ft. Additionally, there was a pipeline of around 1.4 million sq ft of Grade A supply along the Lucknow-Kanpur highway cluster.

CBRE mentioned that the capital city of Uttar Pradesh held a vital position as a consumption market within the state. It was strategically positioned, offering seamless access to different parts of India, including East, West, and Central India. Consequently, it was evolving into one of the largest logistics hubs in Northern India.

The growing demand for warehousing had prompted notable companies like Amazon, Mondelez, Flipkart, Tata Croma, Airtel, DHL, Whirlpool, Delhivery, Ecom Express, and Mahindra Logistics to establish their warehousing facilities in the Lucknow region.

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