Industrial real estate analysts are increasingly flagging significant risks in high-guidance zones where land absorption rates remain low despite official optimism. High guidance values, often set with the intention of boosting government revenues, can distort real market dynamics if not matched by corresponding infrastructure readiness or industrial demand. In several regions, elevated minimum land rates have led to a widening gap between asking prices and what buyers are willing to pay, causing inventory build-up. Analysts warn that prolonged low absorption rates could result in stagnant development, underutilized infrastructure, and strained investor confidence. These mismatches not only slow down industrial growth but also deter future private investment inflows. Price realism is emerging as a critical success factor.

The risk is compounded when high guidance rates trigger cascading effects such as inflated registration costs, higher stamp duties, and unrealistic financing assumptions. This makes project feasibility more challenging, especially for smaller and mid-sized enterprises seeking to set up manufacturing bases. Analysts also note that zones with poor land absorption face longer payback periods for developers and public agencies, straining financial projections. Some reports advocate for dynamic, infrastructure-linked guidance valuation models rather than flat, zone-wide revisions. Early intervention through price recalibration, incentive structuring, and aggressive infrastructure rollouts is seen as key to correcting market perception. Without corrective measures, high-guidance, low-absorption zones risk becoming stranded assets.

The growing scrutiny around these zones highlights the need for more agile and market-responsive land management policies. Governments must actively monitor land sales data, industry feedback, and infrastructure progress to recalibrate guidance values appropriately. Transparency in how guidance rates are set and adjusted will help rebuild trust among industrial investors and developers. Analysts stress that sustainable industrial growth depends on striking a balance between revenue optimization and market functionality. Zones that ignore early warning signs risk falling behind in the national race for industrial competitiveness. Strategic pricing, realistic valuation, and coordinated infrastructure delivery are essential to convert industrial zones from theoretical assets into vibrant, functioning ecosystems.