The emergence of the build-and-lease model is reshaping how developers, landowners, and institutional investors monetize industrial land, offering a structured, capital-efficient alternative to outright sales. Instead of selling plots to end-users, developers are increasingly constructing customized industrial facilities, such as warehouses, manufacturing units, or R&D labs, on owned or aggregated land, and then leasing them to long-term tenants. This shift is unlocking consistent income streams while preserving land ownership, a strategy that is particularly appealing in the context of rising land values and growing demand from occupiers seeking ready-to-use, ESG-compliant infrastructure.
Regions such as Chakan (Maharashtra), Oragadam (Tamil Nadu), Sanand (Gujarat), and Sri City (Andhra Pradesh) are witnessing a surge in build-and-lease transactions, driven by rising demand from sectors like 3PL logistics, EV manufacturing, electronics, and pharmaceuticals. Tenants benefit from speed-to-market advantages and reduced upfront capital expenditure, while developers enjoy predictable cash flows, asset value appreciation, and long-term tenant relationships. This model is especially effective in industrial parks and corridor-linked zones, where pre-zoned land and state-supported infrastructure reduce execution risk and accelerate development cycles.
Institutional capital is playing a key role in scaling this model, with private equity funds, REITs, and infrastructure platforms actively partnering with developers to co-invest in build-and-lease assets. These income-generating properties align well with the yield-focused strategies of long-term investors, offering stable returns backed by industrial growth fundamentals. As India’s manufacturing and logistics sectors expand, the build-and-lease approach is becoming a cornerstone of modern industrial land monetization, combining development flexibility, operational control, and recurring revenue potential in a rapidly formalizing real estate landscape.
