Industrial landowners across India are increasingly turning to long-term ground lease agreements as a strategic way to monetize their land assets while retaining ownership. This model, which allows tenants to lease land for extended periods—typically ranging from 30 to 99 years—enables landowners to generate stable, recurring income without the need to sell their property outright. It’s an especially attractive proposition in high-growth industrial zones where land values are appreciating, and demand from manufacturers, logistics firms, and BTS (Build-to-Suit) developers is strong.
By offering ground leases, landowners can tap into the rising demand for industrial infrastructure from occupiers who prefer to invest in facility development without bearing the heavy upfront cost of land acquisition. This structure appeals to both domestic and international companies that want operational flexibility, as well as to institutional investors and private equity funds, which increasingly favor long-term, income-yielding industrial land portfolios with clear title and zoning certainty. The landowner benefits not only from lease payments but also from potential reversionary rights at the end of the lease term, which can add significant long-term value.
This model is gaining particular traction in Tier-I peripheries and Tier-II industrial towns in states such as Gujarat, Maharashtra, Tamil Nadu, and Karnataka, where state industrial policies and corridor-based development encourage innovative land use. Ground leases are also being bundled with infrastructure-ready features—like access roads, utilities, and compliance support—enhancing the land’s appeal and facilitating faster project execution. As the industrial real estate market matures, long-term ground leases are emerging as a capital-efficient, ownership-preserving monetization strategy, aligning the interests of landowners, developers, and occupiers in a sustainable and scalable framework.
