The ground lease format is witnessing rapid expansion across India’s growing network of logistics parks and Special Economic Zones (SEZs), as developers and institutional investors increasingly seek capital-efficient, scalable models for industrial infrastructure. Under this structure, landowners lease parcels for extended durations—typically 30 to 99 years—allowing developers or occupiers to construct and operate custom-built facilities while the landowner retains ownership. This model offers a flexible framework that supports both long-term income generation and strategic land retention, making it a natural fit for high-growth industrial environments.
In logistics parks, where land requirements are significant and capital deployment needs to be optimized, ground leases enable 3PL providers, e-commerce firms, and cold chain operators to quickly establish large-scale fulfillment and distribution centers without incurring the heavy upfront costs of land acquisition. Similarly, in SEZs—where regulatory clarity and long-term operational continuity are vital—ground leases offer companies a stable platform for export-oriented manufacturing, backed by favorable taxation and compliance benefits. Locations such as Delhi-NCR, Mumbai Metropolitan Region, Chennai, Bengaluru, and Gujarat’s Dholera SIR are witnessing a surge in such deals, thanks to strong infrastructure linkages and rising investor interest.
For landowners and government-backed development bodies, ground leases in SEZs and logistics parks unlock recurring revenue while attracting large-scale investment and job creation without permanently divesting public or private land. As India’s supply chain, manufacturing, and export ecosystems continue to scale, the ground lease model is becoming a cornerstone of industrial land strategy, balancing flexibility, control, and capital efficiency in the nation’s most dynamic economic zones.
