India’s leading retail chains are increasingly pursuing ground lease agreements in high-traffic commercial zones, as they expand aggressively while minimizing upfront capital commitments. These deals allow retailers to secure strategically located plots—near highways, metro stations, or within dense urban catchments—without acquiring the land outright. Instead, they enter into long-term leases with landowners, enabling them to build and operate flagship stores, supermarkets, showrooms, or QSR outlets while conserving working capital for core business operations.
Locations like Gurugram’s Golf Course Road, Mumbai’s Western Express Highway, Bengaluru’s Outer Ring Road, and Pune’s Baner-Aundh belt are emerging as hotspots for such retail-driven ground lease activity. Retail brands—especially in the grocery, apparel, electronics, and F&B sectors—prefer ground leases in these zones to lock in high footfall locations and gain long-term control of the space with fixed or escalated rent agreements that offer cost predictability over 20 to 30 years or more. These leases often include clauses for tenant-led improvements, revenue sharing, or optional buyouts at maturity.
From the landowner’s perspective, ground lease agreements deliver passive, inflation-adjusted income while retaining ownership of appreciating land. With digitized land titles, clear zoning frameworks, and faster municipal approvals, the legal ease of executing such deals has significantly improved. As retail continues its post-pandemic rebound and omni-channel players seek presence in strategic physical locations, ground lease models are becoming the foundation of long-term land use partnerships, balancing asset control with capital efficiency in India’s fast-growing commercial retail corridors.
