New Launch - India Real Estate Report 2026.

What is Ground Rent?

Ground Rent is a fee paid by a property owner or tenant to the landowner for the right to use the land on which a building is located.

Where Ground Rent Is Commonly Used

  • Leasehold residential properties
  • Commercial real estate developments
  • Long-term land lease agreements
  • Mixed-use and institutional projects

Why Ground Rent Is Important

  • Generates income for landowners
  • Allows property use without purchasing land
  • Common in leasehold ownership structures
  • Influences overall property ownership costs

Ground rent is an important concept in leasehold real estate arrangements where land ownership and building ownership are separate. Buyers should review ground rent terms carefully before purchasing leasehold properties.

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