In an effort to better align official land values with market realities, authorities are considering lowering guidance rates for industrial plots with zero improvements. Currently, many undeveloped parcels — lacking roads, drainage, utilities, and basic infrastructure — are priced similarly to fully serviced plots, creating major investor hesitation. Developers and buyers argue that plots without fundamental improvements impose significant additional costs and time delays, which are not reflected in current pricing structures. Recognizing these concerns, regulatory bodies are moving toward differentiated guidance frameworks based on actual development status. Plots categorized as “zero-improvement” may soon carry significantly reduced minimum transaction rates. This adjustment would bring transparency and fairness to industrial land markets.

Under the proposed model, land valuations would explicitly account for the presence (or absence) of critical infrastructure, including site access, soil stabilization, environmental clearances, and power connectivity. Zero-improvement plots would be appraised at base land rates without premiums tied to infrastructure development. This would allow investors to budget realistically for the necessary improvements after acquisition, ensuring no hidden cost shocks. Authorities also believe that such flexible valuation practices would help boost land absorption rates in slower-moving industrial zones. In addition, it would incentivize developers to invest in pre-development work to achieve higher eventual sales prices. This model creates a clear financial distinction between raw and ready-to-use industrial land.

The move to assign lower guidance rates for unimproved plots marks a strategic shift toward market-responsive land management. It addresses the long-standing imbalance where investors bore disproportionate improvement costs despite paying high acquisition prices. By differentiating land based on its usability, governments aim to unlock dormant industrial zones and attract a wider range of buyers, including SMEs and new-age manufacturing firms. Developers, too, stand to benefit through faster land turnover and more targeted marketing strategies. Going forward, more detailed site classifications and valuation audits will likely become standard practice. This approach promises a healthier, more dynamic industrial real estate ecosystem driven by infrastructure readiness and investment realism.