Financial analysts are urging the adoption of an index-based adjustment mechanism for commercial land guidance rates to ensure more accurate, timely, and transparent valuation updates. They argue that relying on periodic manual revisions often leads to significant mismatches between official guidance values and real-time market dynamics, causing distortions in investment decisions, transaction volumes, and government revenue collections. An index-based model, tied to clear economic indicators such as market transaction trends, infrastructure growth indices, rental yields, and inflation rates, would enable smoother, data-driven adjustments to guidance values without the need for abrupt, disruptive rate hikes or corrections.

Analysts believe that incorporating a dynamic index would make the valuation process more scientific, reducing subjectivity and speculative price inflation in commercial property markets. It would allow for smaller, more frequent changes to guidance values based on measurable economic activities, ensuring that land valuations reflect actual demand-supply conditions and regional development patterns. Such a system would also offer better predictability for developers, investors, and businesses, enabling more stable project planning, financial modeling, and investment strategies over the medium to long term.

The push for index-based adjustments also aligns with broader efforts to modernize urban governance and real estate management practices. Financial experts emphasize that, especially in rapidly evolving urban environments, a static approach to land guidance is no longer adequate to support sustainable growth. By institutionalizing an index-linked framework, authorities could strengthen market confidence, enhance investment flows into commercial real estate, and ensure that the evolution of property values is fair, transparent, and in step with the broader economic trajectory of the city.