Newly developed industrial parks are facing challenges in attracting investments due to valuation mismatches between official guidance values and market-driven expectations. Many parks, especially those in early development stages, are priced aggressively based on future potential rather than current infrastructure or demand realities. Investors, however, evaluate land based on immediate usability, regulatory ease, and operational readiness, leading to significant gaps in perceived versus official land values. This mismatch slows down decision-making and increases the negotiation burden for both buyers and developers. As a result, land absorption rates are lower than projected, stalling the momentum that is critical for early park success. Investment flows are becoming cautious and selective.

The valuation mismatch also complicates financing for industrial projects, as banks and institutional lenders rely on standardized valuation benchmarks to assess loan risks. If official land values are inflated compared to actual realizable value, it affects collateral quality and loan-to-value ratios, making funding harder to secure. Developers are left to offer aggressive incentives, including discounts, deferred payment plans, and joint development models to bridge the valuation gap. Some industrial parks are even revisiting their master plans, offering phased developments or plug-and-play facilities to align better with current investor expectations. Without realigning valuations to ground realities, new parks risk prolonged underutilization. Proactive corrections are needed to rebuild investor confidence.

The broader lesson from these emerging trends is that accurate, transparent, and dynamic valuation practices are critical for sustaining industrial growth. Authorities must update guidance values regularly, factoring in infrastructure progress, land readiness, and investor feedback. Industrial park developers, too, must adopt flexible sales strategies, focusing on real deliverables rather than speculative pricing. Collaborative valuation processes involving government, industry bodies, and financial institutions could create more sustainable investment ecosystems. If valuation mismatches persist, it could lead to capital flight toward better-aligned regions, undermining state-led industrialization efforts. Correcting valuation strategies today will pave the way for healthier, faster investment inflows into tomorrow’s industrial hubs.