Plot size and road width are now playing a more prominent role in determining commercial land price guidance, reflecting their strong influence on the utility and market appeal of a property. Larger plots are generally more flexible for a variety of commercial uses, such as malls, office complexes, and mixed-use developments, and often allow developers to optimize building designs, access multiple entry and exit points, and achieve better project economics. As a result, plots with greater size are being assigned higher guidance values, particularly when they offer subdivision potential or support large-format development without regulatory complications.
Similarly, the width of the adjoining road is a critical factor in commercial land valuation. Properties fronting wider roads enjoy superior accessibility, better visibility, and smoother traffic management, making them highly desirable for businesses that rely on high customer footfall or efficient logistics operations. Wider roads also align with urban planning regulations that permit higher floor space indexes (FSI) and greater building heights, further enhancing the development potential and investment attractiveness of such plots. Authorities have responded by assigning premium guidance rates to plots located on major roads or highways compared to those on narrower, interior streets.
By systematically incorporating plot size and road width into commercial land guidance calculations, valuation bodies are ensuring that official rates more accurately mirror real market dynamics and development feasibility. This approach helps investors, developers, and businesses make more informed decisions, promotes more organized urban development, and supports better land use optimization across growing cities. It also reflects a broader trend toward making commercial land pricing frameworks more nuanced, transparent, and strategically aligned with evolving real estate market expectations.