The buy-and-lease model is gaining significant traction among passive income-focused investors in India’s commercial land market, offering a stable and predictable return structure without the risks of development or business operations. This investment approach involves acquiring strategically located commercial plots or pre-developed assets and leasing them to tenants, typically from sectors like retail, warehousing, logistics, healthcare, and institutional services, under long-term contracts. It provides investors with steady rental income, periodic escalation clauses, and the potential for capital appreciation, making it an increasingly popular choice among HNIs, NRIs, family offices, and real estate funds.
Emerging corridors in Hyderabad’s ORR zone, Pune’s Chakan belt, NCR’s logistics parks, and Bengaluru’s Sarjapur-Whitefield stretch are witnessing a surge in buy-and-lease activity. Investors are targeting subdivided commercial plots near highways, metro stations, and industrial clusters, which are in high demand among occupiers seeking plug-and-play facilities or build-to-suit lease options. By entering into triple-net or long-term lease agreements, landowners shift operational responsibilities to the tenant while enjoying predictable, inflation-hedged income flows.
This model is further reinforced by India’s evolving real estate ecosystem, including digitized land registries, GST-compliant leasing structures, and pro-investor regulatory frameworks under policies like PM Gati Shakti and National Logistics Policy. For passive income seekers, the buy and lease strategy offers asset-backed security, minimal management overhead, and consistent cash flow, making it a compelling alternative to volatile financial instruments or high-risk development ventures. As demand for ready and customizable commercial space continues to rise, this model is fast becoming a mainstream investment avenue in India’s maturing real estate landscape.
