FAQs on land support for enterprises

english.shanghai.gov.cn

The Shanghai Municipal Bureau of Planning and Natural Resources has introduced 55 measures to better address business needs. These initiatives aim to secure prime land for high-quality projects and offer effective services to support enterprises.

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Q1: Where to locate industrial projects in Shanghai?

A: Industrial projects in Shanghai are no longer limited to the outskirts but are strategically distributed across the city. The layout follows a "one core, five districts, and multiple zones" framework, promoting balanced industrial development in central areas, new districts, and peripheral zones.

Shanghai offers three types of industrial spaces: industrial bases, industrial communities, and scattered industrial lands.

Industrial bases and communities serve as key platforms for national and municipal initiatives. These areas offer robust infrastructure, full-service support, and abundant development space.

In addition, the bureau has identified scattered industrial lands to respond flexibly to evolving business needs.

Each land type is governed by specific policies. Enterprises planning to upgrade or expand industrial plots as part of the city development plans may qualify for these measures.

Firms aiming to boost capital investment or scale up production are also eligible for targeted land supply support.

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Q2: How can enterprises lower their land leasing and purchasing costs?

A: In Shanghai, industrial land is typically made available for up to 20 years under flexible terms. Pricing varies based on the city's industrial orientation and enterprises' actual performances.

Enterprises are encouraged to explore models such as "lease before transfer" or a combination of leasing and ownership.

Opting for long-term leases can reduce upfront costs, enabling companies to scale operations and build a solid presence before committing to buy.

For purchasing land, installment payment options are available. A minimum of 50 percent must be paid initially, with the remaining balance due within a year of the contract activation, interest-free.

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Q3: How to utilize industrial space more efficiently?

A: Once approved, increasing the floor area ratio or expanding underground space on existing industrial and warehouse land does not incur additional land fees.

In general, industrial and warehouse land is subject to a floor area ratio cap of 2.0, while research and development land may reach up to 3.0.

Enterprises can apply for land use quotas aligned with their actual needs to expand production areas and maximize vertical development.

To support the development of new quality productive forces, businesses are encouraged to integrate functions such as manufacturing, warehousing, R&D, and related amenities within the same site.

The city is also promoting integrated management of M0-type industrial land — designated for emerging industries, R&D, and high-tech innovation — to cultivate diversified, coordinated, and future-ready industrial clusters.

 

Sources: Shanghai Municipal Development and Reform Commission, Shanghai Municipal Bureau of Planning and Natural Resources

Note: The above content is for reference only. In case of any discrepancies, the Chinese version shall prevail.

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