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 Survey Reveals Major Disparity in Market vs. Guidance Value

A recent industry survey has revealed a significant disparity between the prevailing market value and the officially published guidance value of industrial and commercial lands across several regions. In many cases, the market price is reported to be 20% to 50% higher than the guidance value set by government authorities. This gap creates inconsistencies in transactions, leading to undervaluation during property registration and complications in taxation assessments. Experts suggest that outdated guidance values fail to keep pace with the dynamic growth driven by infrastructure expansion and industrial development. The survey highlights the urgent need for regular revisions to maintain fiscal transparency and market stability. Accurate reflection of real values is crucial to support investment flows and revenue collections.

The disparity has direct implications for both buyers and sellers in industrial real estate markets. Buyers often face difficulties in financing, as lenders prefer valuations closer to current market realities, not the lower guidance rates. Sellers, on the other hand, risk capital gains disputes and may encounter challenges in achieving full value recognition during official transactions. The undervaluation also affects government revenues from stamp duties and registration fees, prompting calls for an accelerated update of guidance rates. Market analysts argue that revising guidance values periodically will curb speculative practices and enhance transparency. Stakeholders advocate for data-driven valuation mechanisms that account for infrastructure developments, zoning changes, and regional growth trends.

Policymakers are taking note of the growing concern, with several states initiating studies to recalibrate guidance values across industrial and commercial zones. Transparent and up-to-date guidance values will not only streamline property transactions but also encourage institutional investment into emerging industrial corridors. Developers and industry associations are urging authorities to adopt dynamic, technology-driven valuation models that adjust periodically based on verified market data. Closing the gap between market and guidance values will foster greater trust among investors and support balanced economic growth. Experts emphasize that minimizing this disparity is vital for ensuring equitable taxation, reducing legal disputes, and facilitating smoother real estate market functioning. The survey findings have amplified the call for urgent policy reforms in land valuation practices.

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