Lucknow is emerging as the biggest logistics hub in northern India

Lucknow, Uttar Pradesh's capital, is rapidly establishing itself as a noteworthy Industrial and Logistics (I&L) hub in Northern India, closely trailing Delhi-NCR, according to CBRE South Asia Pvt. Ltd. The region has witnessed substantial investments over the past five years, with players like Amazon, Mondelez, and Flipkart contributing around INR 400 crore. An additional INR 70 crore is predicted for upcoming warehouse development in Lucknow.

The demand for premium warehousing space in Lucknow has consistently grown over the last five years, culminating in a peak in FY23. Leasing activity in the Lucknow region for 2022-23 surged to 0.18 million square feet, marking an impressive 300% year-on-year increase within three years.

Currently, the Lucknow region offers a total warehouse stock of 5.2 million square feet, with an anticipated 1.4 million square feet of Grade A supply along the Lucknow-Kanpur highway cluster. This strategic positioning places Lucknow as an emerging logistics focal point, effortlessly connecting East, West, and Central India.

Numerous significant corporations including Amazon, Mondelez, Flipkart, Tata Croma, Airtel, and DHL have already established their warehousing facilities in response to the escalating warehousing demand. CBRE has played a pivotal role in facilitating crucial establishments and lease agreements, such as Mondelez (100,000 sq. ft.), Amazon (415,000 sq. ft.), and Mahindra Logistics (75,000 sq. ft.).

The expansion of the warehousing sector in Lucknow can be attributed to various factors, competitively priced land availability, robust road connectivity, and favourable industrial land use classification under the UP State Industrial Development Authority (UPSIDA). Additionally, ongoing multi-city metro rail projects in Lucknow, Kanpur, Meerut, Varanasi, along with the forthcoming international airport at Jewar and a new airport in Kushinagar, are bolstering the state's connectivity advantage.

Uttar Pradesh's alignment with the Make in India vision is evident through the UP Warehousing and Logistics Policy 2018. This policy emphasizes stimulating private investments and generating employment across warehousing, silos, cold storage, and related infrastructure segments. Furthermore, it underscores integrating technological solutions for real-time logistics, supply chain management, and process refinement.

On a national scale, the I&L sector is anticipated to maintain its leasing momentum, reaching levels observed in 2022. The CBRE Market Monitor report highlights growing interest from institutional investors, propelling further sectoral expansion. The report for April-June 2023 reveals a 22% year-on-year surge in leasing activity, totalling 17.2 million square feet in H1’23. Concurrently, supply during this period escalated by 68% year-on-year, reaching 16.7 million square feet.

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Lucknow is emerging as the biggest logistics hub in northern India

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