In recent years, the demand for land to set up educational institutions has grown rapidly. Schools prefer long-term leases to ensure stability, justify infrastructure investment, and fulfill affiliation requirements from boards like CBSE, ICSE, or IB. However, despite this growing demand, many landowners hesitate to enter long-term lease agreements—especially for school projects.
So, why are landowners cautious? Let’s explore the reasons behind this shift from ownership to what feels like obligation.
1. Fear of Losing Control Over Land
Many landowners fear that giving land on a 20- to 30-year lease means surrendering long-term control. Even though ownership remains with them legally, emotionally and practically, it feels like letting go of their asset.
2. Lack of Exit Flexibility
A long-term lease can feel like a lock-in. Landowners worry they won’t be able to reclaim the land for personal use, future sale, or redevelopment. In case the lessee defaults or shuts down operations, it can take years of legal processes to regain possession.
3. Legal and Compliance Risks
School setups require land-use conversion, approvals, and construction. This often alters the character of the land. If anything goes wrong—non-compliance, legal disputes, or regulatory issues—the landowner can get dragged into the situation, even if they aren’t involved in the school’s operations.
4. Low and Fixed Returns
Landowners are often offered a fixed annual rent that doesn’t match the property’s potential future value. With rising real estate prices, a long-term lease can mean missing out on better financial opportunities or appreciation in value.
5. Concerns Around Tenant Permanence
Schools are not easy to shift or shut down. Once operational, a school becomes a permanent structure and presence in the area. Landowners worry about losing flexibility due to the emotional and social attachment that a school brings within the community.
6. Maintenance and Accountability Worries
Even if the school is managed well, some landowners fear the land may not be maintained properly over decades. They worry about property damage, poor construction, or illegal modifications, especially if clear clauses are missing in the agreement.
7. Unawareness or Mistrust
Many landowners are simply not aware of how to structure a proper long-term lease agreement. Lack of legal guidance or previous bad experiences may cause them to mistrust institutions or education entrepreneurs.
Final Thoughts: Bridging the Trust Gap
To create more win-win scenarios, school promoters must be transparent, offer fair and flexible terms, and educate landowners about the benefits and safeguards of a well-drafted lease. Legal security, regular escalations, maintenance clauses, and goodwill can help reduce the psychological and financial hesitation of landowners.
By addressing these concerns, we can unlock valuable land for education, turning unused or underused plots into places of learning, growth, and community development.
🎯 To unlock land for education, we must bridge the trust gap with clear agreements, fair returns, and transparent communication.
Contact us +91-9723079990