The rise of build-and-lease facilities is enabling capital-light expansion for industrial occupiers across India, providing them with the ability to scale operations without the burden of land acquisition or upfront construction costs. This model, where developers build customized industrial spaces—such as warehouses, manufacturing plants, or logistics hubs—on their own or aggregated land and lease them to businesses, is gaining traction in sectors like e-commerce, EV manufacturing, 3PL logistics, pharmaceuticals, and consumer goods.
Locations such as Chakan (Maharashtra), Oragadam (Tamil Nadu), Sanand (Gujarat), and Sri City (Andhra Pradesh) are witnessing high adoption of this model due to their strategic connectivity, government-supported infrastructure, and policy incentives. For occupiers, build-and-lease solutions offer faster operational readiness, reduced capital expenditure, and facility designs tailored to operational needs, including automation capabilities, energy efficiency standards, and customized layouts. This makes the model especially appealing for multinational companies and fast-scaling enterprises that prefer to focus capital on core business activities rather than on fixed assets.
From the investor and developer perspective, this approach ensures stable, long-term rental income and higher land monetization through value-added infrastructure. It also mitigates the risk of holding undeveloped land by securing tenant commitments upfront. With regulatory frameworks like PM Gati Shakti streamlining infrastructure provisioning and the National Logistics Policy improving multimodal integration, the build-and-lease model is fast becoming a cornerstone of India’s modern industrial real estate strategy, offering a win-win for both occupiers seeking growth and investors seeking predictable returns.
