India’s commercial real estate sector is witnessing a sharp rise in build-to-suit (BTS) developments, as lease guarantees from anchor tenants significantly enhance the exit value of completed projects. In a market increasingly driven by predictability and asset performance, BTS projects—where facilities are custom-developed for pre-committed tenants—are proving to be far more attractive to institutional investors, REITs, and global funds than speculative assets. The presence of long-term leases with established tenants provides stable cash flows, de-risks the investment, and commands premium resale pricing.
Key growth zones such as Pune’s Chakan-Talegaon belt, Hyderabad’s Shamshabad corridor, Bengaluru’s Hosur Road, and NCR’s warehousing zones are seeing a surge in BTS activity, especially for logistics hubs, data centers, manufacturing units, and back-office campuses. Developers, often in partnership with landowners, are leveraging lease-backed BTS deals to secure construction finance and early exits by selling completed projects at higher valuations. Institutional buyers prefer these assets for their built-in income profile, tenant stickiness, and immediate yield-generation potential.
Government policies under PM Gati Shakti, National Logistics Policy, and state-level industrial frameworks are further supporting this trend by enabling fast-track zoning approvals, plug-and-play infrastructure, and tax incentives. For developers, the BTS model with lease guarantees not only reduces upfront market risk but also accelerates capital recovery, creating a win-win for all stakeholders. As demand for tenant-aligned infrastructure grows, build-to-suit with lease-backed exits is emerging as the new gold standard, redefining commercial land utilization and investment performance in India’s fast-evolving real estate ecosystem.
