The growing stockpile of distressed industrial land across India is creating ripe opportunities for industrial land banking, as developers and long-term investors move to acquire undervalued plots with future development potential. These inventories—accumulated due to failed projects, stalled SEZs, non-performing assets, or regulatory deadlocks—are now being unlocked through auctions, policy-driven recovery efforts, and improved land record transparency. Investors are stepping in to strategically bank land at steep discounts in anticipation of future infrastructure upgrades, industrial policy rollouts, and zone reactivations.
Regions such as Dholera SIR (Gujarat), Jhajjar (Haryana), Oragadam (Tamil Nadu), and Kakinada (Andhra Pradesh) are emerging as active land banking zones, where parcels are being acquired for long-term hold or phased development, rather than immediate construction. These locations offer a mix of partial infrastructure, proximity to corridors or ports, and policy alignment, making them prime candidates for build-to-suit leasing, logistics clusters, or brownfield industrial revival. As land prices rise in saturated markets, the cost arbitrage and flexibility offered by distressed inventories become increasingly attractive to institutional capital and industrial REITs.
While the risks of regulatory uncertainty and market absorption remain, the shift toward structured land banking reflects a more mature and patient investment strategy. With appropriate due diligence, legal clarity, and alignment with regional growth plans, these landbanks can transform dormant assets into engines of industrial productivity and value creation. As India continues to decentralize industrial growth, distressed land banking is poised to play a central role in future-proofing the industrial land supply pipeline.
