A growing number of institutional and private investors are flocking to ground lease deals in India’s high-growth industrial zones, drawn by the promise of stable, long-term income and reduced capital risk. As demand surges for industrial infrastructure in key corridors—driven by sectors such as logistics, e-commerce, EV manufacturing, and pharmaceuticals—ground leases are emerging as a strategic investment vehicle that balances asset control with predictable returns. These long-term leases, typically spanning 30 to 99 years, allow tenants to develop and operate industrial facilities while investors or landowners retain ownership of the underlying land.
Ground lease structures are particularly attractive in prime industrial locations, such as those along the Delhi-Mumbai Industrial Corridor (DMIC), Chennai-Bengaluru corridor, and Gujarat’s Dholera SIR, where land values are high and competition for development-ready sites is intense. For investors, these deals offer inflation-linked rental escalations, minimal maintenance liabilities, and strong asset security, making them ideal for portfolio diversification and steady yield generation. They also provide developers with access to premium land without the upfront capital outlay typically required for outright purchases, enabling faster project execution and asset turnover.
This trend is gaining further momentum as REITs, sovereign wealth funds, and private equity firms look for low-risk, income-generating industrial assets that offer long-term visibility. In parallel, state governments are increasingly supportive of ground lease frameworks as part of their industrial land monetization strategies, streamlining approvals and integrating lease models into industrial park master plans. As India continues its push for infrastructure-led industrialization, ground lease deals are becoming a cornerstone of investor activity, offering a win-win model for landowners, developers, and long-term capital providers in the nation’s next wave of industrial expansion.
