Rising Demand Driven by Manufacturing and Logistics

The current market trend for industrial land shows a surge in demand fueled by India’s push for manufacturing under initiatives like ‘Make in India’, PLI schemes, and increasing global interest in supply chain diversification away from China. Key demand drivers include:

• Expansion of sectors like electronics, electric vehicles (EV), FMCG, textiles, and pharma
  
• Rapid growth in e-commerce and 3PL logistics requiring large-format warehousing space
  
• Strong interest from multinational companies in plug-and-play industrial parks and SEZs
  
• Rising need for clean-tech and renewable energy-related land, such as battery storage and green hydrogen facilities
  

Tier 1 cities like Chennai, Pune, and Bengaluru are seeing saturation, while Tier 2 zones like Hosur, Sanand, and Coimbatore are emerging as hotbeds for investment.

Price Appreciation and Strategic Land Banking

There is a steady price appreciation trend in well-connected industrial corridors, particularly near:

• National highways and dedicated freight corridors (DFCs)
  
• Multi-modal logistics parks (MMLPs) and inland container depots (ICDs)
  
• Peripheral areas of metro cities, where residential pressure is lower
  

Land prices have seen annual growth of 8–15%, especially in industrial estates with zoning clearance and infrastructure. Developers and private equity investors are increasingly land banking in anticipation of zoning upgrades or industrial park expansion, creating supply constraints in high-potential areas.

Focus on Compliant, ESG-Ready Infrastructure

Industrial land buyers are increasingly prioritizing environmental, social, and governance (ESG) factors and legal compliance. Current trends reflect strong demand for:

• Pre-zoned land with clear title, pollution board approvals, and power/water connectivity
  
• Plots in green-certified industrial parks with STPs, fire safety, and smart infrastructure
  
• Flexibility for clean manufacturing, such as light engineering and non-polluting sectors
  
• Land that can support ESG-linked investments or qualify for sustainability-linked loans
  

Institutional investors, REITs, and large occupiers prefer land assets that align with long-term compliance, scalability, and ESG goals, making regulatory-ready land more attractive than raw, undeveloped sites.