A growing number of industrial landowners in India are opting to retain long-term control over their land assets by leasing plots for industrial use, rather than selling them outright. This approach is gaining traction as the ground lease model proves to be a sustainable and income-generating alternative, particularly in high-demand regions aligned with major infrastructure initiatives such as PM Gati Shakti, National Industrial Corridors, and state-level manufacturing clusters. Through long-term lease agreements—typically lasting 30 to 99 years—landowners maintain ownership while benefiting from stable, recurring revenue streams.
This leasing strategy is especially attractive in rapidly appreciating industrial zones, where outright sales may offer immediate gains but forego the long-term upside of land value escalation. By leasing plots for uses such as build-to-suit (BTS) manufacturing units, logistics hubs, warehouses, and cold storage, landowners tap into robust occupier demand while preserving reversionary rights at the end of the lease term. This not only ensures asset control but also provides opportunities for asset repositioning or redevelopment in the future.
Moreover, leasing industrial plots aligns with institutional investor preferences, as many global funds and real estate investment trusts (REITs) seek land-secure, income-generating assets without the complexities of land acquisition in India. Landowners who lease plots with clear zoning, compliance support, and infrastructure access also gain faster occupancy and attract higher-quality tenants. As industrial real estate demand continues to expand, leasing models are enabling landowners to participate actively in the growth cycle, earning predictable returns while retaining flexibility and long-term stewardship of their assets.
