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How do FSI norms influence development?

1. Determine Maximum Buildable Area FSI (Floor Space Index)—also known as FAR (Floor Area Ratio)—defines the ratio of the total built-up floor area to the total plot area. It directly influences: The volume of construction permissible on a given land parcel The number of floors or built-up space allowed The scale of operations an industry can establish on the plot For example, a plot...

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Who should conduct a feasibility study for buyers?

1. Independent Real Estate Consultants Professional real estate advisory firms or consultants are often engaged to conduct feasibility studies for industrial land buyers. Their responsibilities include: Market research and price benchmarking Land use analysis and regulatory review Assessment of accessibility, competition, and potential returns They provide unbiased insights, helping...

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Why is plot alignment important for development?

1. Optimizes Building Orientation and Layout Design Proper plot alignment ensures that structures can be designed with efficient orientation for: Natural lighting and ventilation Ideal positioning of production lines or storage bays Alignment of office space, entry gates, and service areas Well-aligned plots allow architects and engineers to maximize usable space while ensuring compliance...

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Where are logistics parks most feasible?

1. Near Major Highways and Freight Corridors Logistics parks are most feasible in locations with direct access to: National Highways (NH) such as NH-48, NH-44, and NH-16 Expressways and ring roads connecting metropolitan regions Dedicated Freight Corridors (DFCs) like the Delhi–Mumbai DFC Interstate border points facilitating inter-regional trade These corridors enable efficient...

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How can land be promoted for warehousing use?

1. Highlight Strategic Location Advantages Promoting land for warehousing begins with emphasizing its geographic and logistical strengths, including: Proximity to national or state highways for seamless truck movement Close access to ports, airports, rail terminals, or inland container depots (ICDs) Connectivity to urban consumption centers or e-commerce delivery zones Integration with...

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What industries are suitable for large-acre plots?

1. Automobile and EV Manufacturing Automotive companies, including electric vehicle (EV) manufacturers, require expansive land for: Assembly lines and testing tracks Component manufacturing and warehousing Parking and vehicle dispatch yards OEMs and Tier-1 suppliers typically seek plots ranging from 10 to 100+ acres, especially in regions like Pune, Sanand, Hosur, and Sriperumbudur. 2....

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What are the risks of holding unsold industrial land?

1. Capital Lock-In and Opportunity Cost Unsold industrial land represents idle capital that cannot be deployed elsewhere. The funds tied up in the property: Limit investment in other high-yield ventures Affect cash flow for business expansion or operations May reduce liquidity and increase financial vulnerability This leads to a high opportunity cost, especially when market cycles shift...

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Why are land transactions slowing down in some regions?

1. High Land Prices and Overvaluation In several regions, land prices have escalated beyond the affordable or justified levels, making them unattractive to: Mid-sized industrial buyers and MSMEs Developers looking for profitable resale or leasing Investors seeking realistic capital appreciation This price resistance slows down negotiations, leading to reduced deal closures and longer...

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How does inflation affect land sale prices?

1. General Rise in Input and Development Costs Inflation leads to an overall increase in the cost of construction materials, labor, fuel, and utilities, which directly impacts the cost of developing industrial plots. As these costs rise: Developers may increase land prices to maintain margins Sellers adjust asking prices based on future replacement costs Buyers factor in higher capital...

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What market factors impact land sales volume?

1. Economic and Industrial Growth Trends Macroeconomic indicators such as GDP growth, industrial output, and manufacturing activity significantly influence land sales volume. When the economy is expanding: Industries increase production capacities Businesses seek new locations for expansion Demand for industrial plots rises accordingly Conversely, during economic slowdowns, land...

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