Lucknow Leads Tier 2 Cities in Shopping Centre Space Growth: Knight Frank India Insights

In a recent report by Knight Frank India titled "Think India, Think Retail 2024," Lucknow has been highlighted as the leading Tier 2 city in India for shopping centre space. This recognition is significant as it underscores the city’s burgeoning status as a major retail hub. With a gross leasable area (GLA) of approximately 5.7 million square feet, Lucknow has surpassed several major cities, including Kolkata and Ahmedabad, in terms of operational shopping centre space for the year 2023. 

Key Findings from the Report

Knight Frank India's comprehensive survey included 340 shopping centres across 29 cities, with a specific focus on 21 Tier 2 cities. The findings reveal that Lucknow holds a commanding position with 5.7 million square feet of GLA, which represents a substantial portion of the retail space in Tier 2 cities. This amount of space not only leads in this category but also places Lucknow seventh in the overall ranking of cities by GLA in the country.

The survey data shows that Lucknow accounted for 18.4% of the total 30.8 million square feet of GLA across the Tier 2 cities. This statistic highlights the city's substantial share of the retail space market in these regions, reflecting its growing commercial significance and the increasing demand for shopping centres.

Comparative Analysis with Other Tier 2 Cities

Following Lucknow, Kochi ranks second among Tier 2 cities with a GLA of 2.3 million square feet. Kochi’s position indicates a strong retail presence, but it is still significantly behind Lucknow in terms of space. Jaipur, another prominent Tier 2 city, holds the third spot with 2.1 million square feet of GLA. These figures suggest that while Kochi and Jaipur are also emerging as important retail locations, they are yet to reach the scale of Lucknow’s retail infrastructure.

Retail Space Dynamics in Lucknow

Lucknow's impressive shopping centre density of 1,439 square feet per capita in 2023 is a noteworthy aspect of its retail landscape. This density underscores the city’s capability to accommodate a growing number of retail outlets and meet the needs of its expanding consumer base. With over 580 retail outlets operating within its shopping centres, Lucknow has a balanced mix of Indian and international brands. Approximately half of these outlets are Indian, while the remaining represent global brands, reflecting the city’s diverse consumer preferences and its appeal to both local and international retailers.

Economic Impact and Urban Development

As the capital of Uttar Pradesh, Lucknow plays a pivotal role in the state’s economic activities. The city’s rapid growth in retail space is a testament to its expanding economic base and rising affluence among its residents. The increasing demand for retail space can be attributed to several factors, including urbanization, higher disposable incomes, and changing consumer habits. The development of shopping centres not only contributes to the city’s economic growth but also enhances its urban infrastructure, making it a more attractive destination for both consumers and investors.

Lucknow's high shopping centre density underscores its strong commercial infrastructure, effectively meeting urban needs. This development mirrors the broader trend of Tier 2 cities becoming pivotal in India's retail sector, driven by shifts in consumer behavior and economic growth. The expansion of retail infrastructure in cities like Lucknow indicates their growing importance in the nation's evolving commercial landscape.

Future Prospects for Retail Space

The retail sector in India is expected to continue its growth trajectory, with projections indicating a 45% increase in new retail space supply by 2028. This anticipated expansion is likely to further bolster the commercial viability of Tier 2 cities, including Lucknow. The increase in retail space is expected to enhance the shopping experience for consumers, attract more retailers, and drive further economic development in these cities.

Challenges and Opportunities

Despite its success, Lucknow faces certain challenges as it continues to expand its retail infrastructure. Issues such as traffic congestion, infrastructure development, and the need for sustainable growth practices must be addressed to ensure the city’s continued success as a retail hub. Opportunities for further development include leveraging technological advancements in retail, enhancing consumer experiences, and fostering partnerships between local and international retailers.

Conclusion

Lucknow’s rise to the top position among Tier 2 cities for shopping centre space is a significant achievement that highlights its growing prominence in India’s retail sector. With its substantial GLA, high shopping centre density, and a diverse mix of retail outlets, Lucknow is well-positioned to continue its upward trajectory. The city's success not only reflects its economic vitality but also emphasizes the broader trend of Tier 2 cities emerging as key players in the retail landscape.