The Build-to-Suit (BTS) format is gaining significant traction among investors across India’s emerging industrial corridors, driven by a surge in demand for custom-built, ready-to-operate facilities that align with occupiers’ technical and logistical requirements. This model, where facilities are developed to a tenant’s specifications and often backed by long-term lease agreements, is proving highly attractive to investors seeking predictable income streams, low vacancy risk, and high asset stability. Industrial corridors such as the Delhi-Mumbai Industrial Corridor (DMIC), Chennai-Bengaluru Industrial Corridor (CBIC), and Amritsar-Kolkata Industrial Corridor (AKIC) are now hotspots for BTS investment activity.
Investors are drawn to BTS projects because they mitigate traditional development risks by securing an end-user commitment before construction begins. These assets often come with long-term lease structures and creditworthy tenants, ranging from global manufacturers and logistics companies to data centers and pharmaceutical firms, providing stable cash flows and strong asset appreciation potential. Moreover, their presence in planned corridors ensures access to multimodal logistics infrastructure, power and water utilities, and government incentives, making them strategically viable and operationally efficient.
Institutional capital, including REITs, private equity funds, and sovereign wealth entities, is increasingly targeting BTS portfolios within industrial parks and logistics zones. For developers and landowners, this trend provides a path to quick monetization of land holdings, particularly when partnered with state-backed infrastructure and industrial policies. As India’s manufacturing and supply chain sectors continue to expand, the BTS format is emerging as a cornerstone of industrial corridor investment, blending customization with investment-grade resilience in a rapidly evolving real estate landscape.
