The government has proposed introducing differential guidance rates based on utility connectivity levels to create a more precise and equitable land valuation framework for commercial properties. Under this proposed system, commercial plots would be assigned different guidance values depending on the availability and quality of essential services such as electricity, water supply, sewerage, drainage, internet connectivity, and road access. Plots with full utility integration and immediate development readiness would attract higher guidance rates, while those with partial or poor connectivity would be valued more conservatively to reflect the additional investment needed to make them commercially viable.

This move is intended to align official valuations more closely with real development potential and operational feasibility, promoting transparency and fairness in commercial real estate transactions. It also aims to discourage speculative pricing in underdeveloped areas while incentivizing infrastructure improvements by directly linking utility upgrades to land value appreciation. For developers and investors, the introduction of differential guidance rates would provide clearer signals regarding the true cost and readiness of different sites, enabling better-informed project planning and investment decisions.

The proposal is part of a broader strategy to modernize land valuation practices, support sustainable urban growth, and ensure that property taxation and transaction systems reflect actual ground realities. If implemented, differential guidance based on utility connectivity could also encourage more balanced urban development by directing commercial growth toward well-serviced areas and reducing pressure on overstretched city centers. Stakeholders across the real estate sector are closely watching the proposal, as it has the potential to significantly reshape land acquisition strategies and the future dynamics of urban commercial expansion.