Lucknow Region Poised to Generate 70,000 Jobs as Next Industrial Powerhouse


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    In a recent report, CBRE South Asia, a prominent property consultant, revealed that Lucknow is rapidly emerging as a significant industrial and logistics hub in North India, following in the footsteps of Delhi-NCR. This shift is set to propel the warehousing sector and lead to the creation of around 70,000 direct job opportunities over the next five years.

    CBRE reported that over the last five years, leading players such as Amazon, Mondelez, and Flipkart have invested approximately Rs 400 crore in the Lucknow region. Moreover, an additional investment of Rs 70 crore is anticipated for warehouse development within the city.

    The demand for high-quality warehousing facilities has shown consistent growth in Lucknow over the past half-decade, reaching unprecedented levels in the fiscal year 2022-23. Warehousing space leased in the Lucknow region surged from 0.11 million square feet in the previous year to 0.18 million square feet in the stated period.

    Currently, the Lucknow area boasts a total warehouse stock of 5.2 million square feet, with an additional 1.4 million square feet of Grade A supply in the pipeline, predominantly located along the Lucknow-Kanpur highway cluster.

    CBRE highlighted Lucknow’s strategic location and seamless access to Eastern, Western, and Central India, positioning it as a critical consumption market within the state. Consequently, Lucknow has emerged as a key logistics hub in Northern India.

    The heightened demand for warehousing space has attracted industry giants including Amazon, Mondelez, Flipkart, Tata Croma, Airtel, DHL, Whirlpool, Delhivery, Ecom Express, and Mahindra Logistics, all of whom have established their warehousing facilities in the region.

    Currently, notable developers such as Welspun, BG Link, Nanak Logistics, and Reciprocal contribute to the Grade A warehousing landscape in Lucknow’s warehousing market.

    CBRE estimates that this burgeoning sector has the potential to generate approximately 70,000 direct employment opportunities, alongside an additional 35,000 jobs in allied activities such as transportation and external vendors, over the next five years.

    CBRE played a significant role in facilitating the development and leasing of warehouse spaces for prominent players like Mondelez (100,000 square feet), Amazon (415,000 square feet), and Mahindra Logistics (75,000 square feet) in and around the city.

    The driving factors behind the growth of warehousing in Lucknow include the availability of reasonably priced land parcels, strong road connectivity, and the advantages of industrial land use classification under the UP State Industrial Development Authority (UPSIDA).

    The forthcoming multi-city metro rail projects in Lucknow, Kanpur, Meerut, and Varanasi, along with the upcoming international airport at Jewar and a new airport in Kushinagar, are further enhancing the state’s connectivity advantage.

    Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa at CBRE, noted that while e-commerce players have dominated the Lucknow market in the past decade, the demand from third-party logistics (3PL) companies played a pivotal role in shaping the occupier landscape in FY23.

    As the state capital, Lucknow has emerged as an ideal location for warehouse development, benefitting from its strategic positioning and robust connectivity. The city’s evolution into a thriving industrial and logistics hub underscores its vital role in Northern India’s economic landscape.

    Also Read:- Bengaluru, Pune, and Mumbai Witness Surging Demand for Warehouses in Q2 2023, while Delhi-NCR and Chennai Experience a Drop


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