Comparable Sales (Market Approach)

The comparable sales method (or market approach) is the most commonly used valuation method for industrial land in this region. This approach involves:

• Analyzing recent land transactions in nearby industrial estates or corridors
  
• Adjusting for differences in zoning, plot size, location, and infrastructure readiness

This method provides a real-time, market-aligned benchmark.

Cost Approach (Replacement Method)

The cost approach is also used, especially by government agencies and industrial developers, to estimate:

• The base land value based on government guidance rates or circle rates
  
• Add-on costs such as grading, compound wall, drainage, power connections, and road development
  

This method is useful in zoned or subsidized industrial parks.

Income Capitalization Method (Limited Use)

The income approach is occasionally applied when the land is:

• Leased to tenants with long-term rental agreements (e.g., warehouses, factories)
  
• Located in a developed industrial park with consistent rental yield
  
• Under consideration for valuation in REITs or institutional portfolios
  

This method involves calculating the Net Operating Income (NOI). It is primarily used for income-generating properties or large-scale industrial campuses with operational facilities.