The transformation of urban marketplaces in recent decades, particularly in response to the rise of contemporary shopping centers, has raised a fundamental question in urban design and planning: through what mechanisms does sustainable market development occur, and what is the relationship between spatial organization, social interactions, and innovation in this process? This study aims to comparatively analyze the spatial and social performance of Sanandaj’s traditional bazaar and the Banta Abidar shopping center, and to propose a conceptual model of sustainable development based on "contextual innovativeness." Using an analytical-comparative method with a mixed-methods approach, data were collected through structured observation, spatial organization analysis, semi-structured interviews, and Likert-scale questionnaires; a total of 97 valid questionnaires were analyzed across the two sites. Structural equation modeling (PLS-SEM) in SmartPLS revealed that social interactions have the strongest direct effect on sustainable market development (β=0.36, p<0.001), followed by sensory richness (β=0.31), contextual innovativeness (β=0.29), and spatial organization (β=0.24). The R² value for the dependent variable was 0.68, and the SRMR fit index was 0.061, indicating strong explanatory power and model fit. The comparative analysis shows that the traditional bazaar approaches sustainability through perceptual quality and social capital, whereas the shopping center relies mainly on spatial efficiency and service-oriented innovativeness. Consequently, sustainable market development is neither purely technological modernization nor a return to tradition, but rather the product of interactions among social interactions, sensory richness, and contextual innovativeness within a cultural-spatial framework,