India’s industrial real estate market is witnessing a marked uptick in land leasing activity, driven by tenants, particularly manufacturers, logistics operators, and e-commerce firms, who are increasingly adopting an asset-light expansion strategy. Rather than investing heavily in land acquisition, companies are opting to lease plots on long-term tenures, allowing them to deploy capital toward facility development, technology, and operations. This shift is particularly prominent in emerging industrial corridors and logistics zones where infrastructure is robust, and land values are rising rapidly.
Long-term lease models offer occupiers the flexibility to custom-build industrial assets, such as warehouses, cold storage units, and manufacturing plants, without the burden of outright land ownership. These arrangements, often spanning 30 to 99 years, enable businesses to scale operations quickly and efficiently, especially in sectors where speed-to-market and geographic reach are critical. Asset-light leasing also reduces balance sheet liabilities and aligns with corporate sustainability goals by offering greener, shared infrastructure within planned industrial parks.
From the perspective of landowners and developers, this leasing trend presents a sustainable monetization opportunity. It generates recurring, inflation-protected income while retaining long-term asset control and reversionary rights. Locations such as Hosur, Sanand, Chakan, Bhiwandi, and Oragadam are seeing increased demand for leased land parcels, supported by government policy incentives, improved multimodal connectivity, and the rise of build-to-suit and lease-back models. As industrial expansion accelerates across India, land leasing is becoming a cornerstone of growth, delivering operational flexibility for tenants and stable returns for landowners in a dynamic economic landscape.
