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Developers Urge Flexibility in Guidance for Unimproved Land Parcels

Developers are increasingly urging authorities to introduce flexibility in guidance values for unimproved land parcels, arguing that uniform pricing structures fail to reflect ground realities. Unimproved plots, which lack basic infrastructure like roads, drainage systems, and utility connections, impose additional development costs on buyers that are not captured in current guidance rates. Applying the same or similar rates to both developed and undeveloped land leads to distorted valuations and deters investment. Developers contend that differentiated guidance values — based on the level of site readiness — would create a more transparent, equitable market. Without such flexibility, many industrial zones face slow land absorption and delayed project kickoffs. A more nuanced approach is being demanded across emerging industrial corridors.

The lack of flexible pricing particularly hampers small and medium enterprises (SMEs), which are more sensitive to upfront capital requirements. SMEs often find themselves priced out of promising industrial zones due to high guidance rates that do not account for subsequent infrastructure investments needed on raw land. Developers point out that rigid valuation discourages strategic, phased development and risks leaving large portions of industrial parks underutilized. Introducing separate guidance categories — such as “greenfield,” “semi-developed,” and “fully developed” — could better match buyer expectations with land readiness levels. Such categorization would encourage buyers to invest earlier in raw parcels with a clear understanding of additional costs. Flexible guidance would also incentivize developers to deliver fully serviced plots to command higher values.

The call for guidance flexibility reflects a broader push for modernizing industrial land management practices in line with global standards. Authorities are being urged to adopt dynamic valuation models that consider factors like soil quality, proximity to major infrastructure, and the cost of bringing a plot to operational readiness. Developers argue that a realistic, phased pricing framework would accelerate industrialization, improve land turnover, and increase government revenues over time. Policymakers who embrace differentiated guidance values can also attract a broader spectrum of investors, from startups to multinational corporations. Ultimately, flexibility in guidance rates is critical to unlocking the full economic potential of industrial land and ensuring faster, more sustainable regional development.

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