Industrial Property
Investment Opportunities

Strategic deployment of capital into Grade-A industrial assets. We identify high-yield logistics, warehousing, and manufacturing hubs across the Bangalore corridor for institutional and private investors.

The Bangalore Industrial Surge

As the logistics backbone of South India, Bangalore’s periphery has transformed into a critical nexus for e-commerce and high- tech manufacturing. Our data shows a consistent 12% year-on- year growth in demand for Grade-A space.

8.5% Core Yield

Industry-leading average returns on industrial assets within our portfolio.

Strategic Connectivity

Access to NH-4, NH-7, and the Peripheral Ring Road developments.

Track Bengaluru’s Real Estate Growth Trends

Explore how residential property prices have evolved across Bengaluru over the years, highlighting market performance, investment potential, and demand patterns in key residential corridors.

BANGALORE RESIDENTIAL PRICE INDEX

+28.3%

Growth (YoY)

Prime Micro-Markets
City Average
2020
2021
2022
2023
₹11,800/sqft
2024 (FORECAST)

Rental Growth Metrics

A quantitative look at the performance of industrial assets compared to traditional commercial real estate.

WAREHOUSE RENTAL INDEX

+14.2%

Growth (YoY)

Grade-A Assets
Market Average
2020
2021
2022
2023
₹34/sqft
2024 (FORECAST)

Gain Unrivaled Market Intelligence

Our 2024 Industrial Investment Report provides proprietary data on micro-market vacancy
rates, upcoming infrastructure impact assessments, and rental yield projections.

Personalized Consultation

Build Your Industrial
Portfolio

Connect with our dedicated Investment Lead for a confidential
discussion on high-value asset acquisitions and portfolio restructuring.

Industrial land as an investment class in Karnataka

Industrial and warehousing land behaves differently from residential or office property. Tenants are sticky because relocating a plant is expensive, leases run long, and the value driver is infrastructure — a highway upgrade or a new logistics park changes a micro-market faster than any amenity ever changes a housing one. The comparison below sets out how the main entry routes differ before you commit capital to any of them.

Four ways into industrial property — how they compare

General characteristics of each route, prepared by Nexgeno for orientation. Figures and outcomes vary by parcel, tenant and market cycle. This is general information, not investment advice.
Entry routeWhat you buyWhen income startsMain risks to weighUsual exit
Raw industrial landAn unbuilt parcel, held for appreciationNo rental income until developed or leasedHolding cost with no yield; conversion and title issues; corridor development slower than expectedSale to an occupier or developer
Notified-area industrial plotAn allotted plot inside a KIADB or KSSIDC areaOn development or sub-lease, subject to allotment conditionsAllotment conditions and utilisation timelines; transfer restrictionsTransfer or sale deed once conditions are met
Ready leased warehouseA built, tenanted assetImmediately, from the existing leaseTenant credit quality; lease expiry and renewal; building specification ageingSale to another investor, often yield-priced
Build-to-suitA facility built for a committed occupierOn handover, under a pre-agreed leaseConstruction and cost overrun; occupier default before handoverSale of the tenanted asset, or hold for the lease term

How we work through an industrial investment

  1. Set the mandate

    Capital available, target holding period, whether you need running income or are comfortable with an appreciation play, and your appetite for construction risk. These four answers eliminate most of the market before anyone visits a site.

  2. Choose the corridor

    Location does the heavy lifting in this asset class. We look at highway access — NH-4, NH-7 and the Peripheral Ring Road are the arteries around Bengaluru — plus proximity to existing industrial clusters, power availability and announced infrastructure that is actually funded rather than merely announced.

  3. Underwrite the parcel

    Title chain, encumbrance, zoning and conversion status, approach road width, power and water, and effluent viability. For a tenanted asset we also read the lease: escalation clauses, lock-in, renewal terms and who carries structural repairs.

  4. Price against comparable evidence

    Rate per acre or per square foot benchmarked against recent transactions in the same micro-market, and rental evidence for the same building grade. Where we do not have reliable comparable data for an area we say so rather than filling the gap with a guess.

  5. Structure, close, and plan the exit

    Payment structure, documentation and registration, then the exit route written down at entry — who the likely buyer is and what has to be true for them to pay your target price. Our own stated portfolio core yield of 8.5% is the benchmark we hold new acquisitions against.

Industrial property investment — frequently asked questions

What returns should I expect from industrial land near Bengaluru?
There is no single honest number — returns depend on the corridor, the entry price, whether the asset is tenanted and how long you hold. Our own portfolio core yield is stated at 8.5%, and we use that as the benchmark for new acquisitions rather than as a promise. Any specific parcel is underwritten on its own comparable evidence, and we will show you that evidence rather than a headline figure. This is general information, not investment advice.
Is leased warehouse or raw land the better investment?
They solve different problems. A leased warehouse pays from day one and is priced on yield, so the return is more predictable and the upside more limited. Raw land pays nothing while you hold it and depends on the corridor developing, so it carries more risk and, if the corridor does develop, more upside. Which suits you depends on whether you need income now and how long you can hold.
Can an NRI invest in industrial land in India?
Non-resident Indians and persons of Indian origin can generally acquire commercial and industrial immovable property in India under FEMA, with agricultural land, plantations and farmhouses excluded. Repatriation of sale proceeds has its own conditions. The rules turn on your specific residency status and how the funds move, so confirm your position with a qualified advisor or your authorised dealer bank before committing.
What makes one industrial corridor better than another?
Four things, in roughly this order: distance and clean access to a national highway or ring road, whether an industrial cluster already exists nearby, power and water availability at the load your likely tenants need, and funded infrastructure in the pipeline. Announcements alone do not move values; construction does.
How liquid is industrial land compared with other property?
Less liquid than residential and typically slower to sell, because the buyer pool is smaller — occupiers with a specific operational need, developers, or investors. That is precisely why the exit route should be identified at entry rather than at sale.
What due diligence is non-negotiable before buying?
Title chain and encumbrance certificate, zoning and land-use conversion status, survey and actual boundaries on the ground, approach road ownership and width, power and water availability, and effluent viability for the intended use. For tenanted assets, add the full lease and the tenant’s financials. Skipping any of these is where the losses in this asset class come from.

Tell us your capital, holding period and income requirement. We will come back with corridors and parcels that match — and the comparable evidence behind the pricing.