Hello LandMark

Guidance Value Adjustments Proposed for Undeveloped Industrial Zones

Recognizing the growing disparity between land pricing and infrastructure readiness, authorities are proposing targeted guidance value adjustments for undeveloped industrial zones. In many regions, guidance rates were set uniformly high, without distinguishing between fully developed industrial parks and raw, infrastructure-deficient land parcels. This mismatch has deterred investors, slowed land absorption rates, and left vast areas underutilized. To correct this, policymakers suggest revising guidance values downward in zones where essential services like roads, drainage, electricity, and sewage systems are incomplete. Lowering guidance values for undeveloped plots would better reflect their true market worth and make them financially viable for early-stage investors. It would also support faster project launches and industrial activity.

The proposed adjustment model recommends categorizing land into distinct bands — such as “raw land,” “semi-developed land,” and “fully developed land” — with guidance rates assigned accordingly. Technical assessments of soil quality, flood risks, connectivity, and utility availability will help define these categories. By aligning guidance rates with on-ground realities, authorities hope to create a more transparent, equitable, and competitive industrial land market. Developers and industrial associations have strongly backed this move, arguing that differentiated pricing would attract a wider range of investors, including SMEs and mid-sized enterprises. It would also encourage phased development strategies where private players invest progressively as infrastructure milestones are achieved. Market-responsive pricing is becoming critical for industrial growth acceleration.

The proposed guidance value adjustments reflect a broader shift towards data-driven, infrastructure-sensitive industrial land policies. Authorities understand that unrealistic pricing frameworks can stall investment, delay job creation, and undermine the competitiveness of emerging industrial corridors. By introducing flexible, development-linked guidance models, governments can stimulate early-stage investments while incentivizing timely infrastructure rollouts. Investors, too, benefit from clearer risk assessment and more accurate project cost planning. If implemented effectively, differentiated guidance rates could unlock large tracts of underutilized land, rejuvenate industrial clusters, and strengthen the foundation for sustainable, regionally balanced economic growth. The success of new industrial zones increasingly hinges on realistic, market-aligned valuation practices.

Submit a Comments

8 + 5 =

Recent Social Media Updates