by Industrial Guide | Jun 13, 2025 | I - News
Phased Development Strategy Breaking development into logical phases ensures better cash flow management, market alignment, and risk control. Phase 1: Site preparation, grading, fencing, and essential utility connections Phase 2: Construction of key infrastructure...
by Industrial Guide | Jun 13, 2025 | I - News
Financial Holding Costs Keeping land idle still incurs ongoing expenses that add up over time and reduce the net return on investment. Annual property tax, insurance, and security costs can total ₹5–10 lakh per acre No income generation from rent or resale delays...
by Industrial Guide | Jun 13, 2025 | I - News
Standard Contingency Allocation To prepare for unexpected cost escalations, most industrial projects allocate a contingency budget as part of the financial plan. Typically 5% to 10% of the total construction or development budget Covers material price increases, labor...
by Industrial Guide | Jun 13, 2025 | I - News
Break-Even Concept Under Market Decline The break-even point is the minimum resale or rental value needed to recover total investment if land prices fall. It includes all acquisition, development, and holding costs. Calculated as:Total Cost (Land + Development +...
by Industrial Guide | Jun 13, 2025 | I - News
Increase in Borrowing Costs When interest rates rise, the cost of loans increases, which directly affects cash flow and total project cost. Higher monthly EMIs increase financial pressure during development Increases the overall cost of capital, reducing profit...
by Industrial Guide | Jun 13, 2025 | I - News
Common Causes of Cost Overruns Unexpected expenses during site development often result from scope changes, inaccurate estimates, or unforeseen site conditions. Poor soil, drainage issues, or utility conflicts can require additional earthwork or redesign Material...
