Authorities are now drafting new norms to integrate land preparation costs directly into the guidance value framework for industrial land parcels. Historically, guidance rates reflected only the basic land value, excluding critical development expenses such as soil stabilization, drainage systems, leveling, and internal road creation. Buyers often faced unexpected financial burdens post-purchase when preparing plots for operational use. The upcoming reforms aim to eliminate these hidden costs by creating a composite guidance value that includes mandatory site development standards. This integration would provide greater transparency and predictability to investors during land acquisition. It also aligns with global practices of valuing land based on usability, not just location.
The revised framework will differentiate between raw (unimproved) and ready-to-build (developed) plots, assigning appropriate guidance values based on infrastructure quality and development readiness. Factors like topography, soil conditions, flood risk, and access to utilities will be incorporated into the valuation models. This change is expected to make financial planning easier for buyers, reduce post-acquisition disputes, and streamline project budgeting. For government agencies, a transparent, all-inclusive guidance value could accelerate land sales and boost industrial park occupancy rates. Developers who proactively invest in pre-development activities will be better positioned to command higher premiums. The move reflects a maturing of land management strategies in rapidly industrializing regions.
By integrating land preparation costs, the new norms are set to bridge the gap between theoretical land pricing and real-world project viability. Investors will have clearer cost visibility upfront, improving confidence and enabling faster decision-making. Authorities must ensure that detailed, standardized cost calculations and technical assessments back the new guidance valuations to maintain market credibility. Developers and industrial associations are welcoming the move, seeing it as essential to balancing land affordability with infrastructure quality. In the long run, the reform is expected to enhance the competitiveness of industrial corridors, attract larger investment inflows, and support sustainable, infrastructure-driven industrial growth across emerging and established regions alike.