1. Price Range Based on Location
The average price per square foot (sq. ft.) of industrial land varies significantly depending on the geographic location, proximity to infrastructure, and zoning status. Here are typical price brackets across key regions in India:
- Tier 1 Cities (e.g., Mumbai, Delhi NCR, Bengaluru, Chennai):
₹2,500 – ₹10,000 per sq. ft.
High due to land scarcity, advanced infrastructure, and proximity to industrial and commercial hubs. - Tier 2 Cities (e.g., Pune outskirts, Coimbatore, Jaipur, Lucknow):
₹800 – ₹2,500 per sq. ft.
Moderate rates, often influenced by regional connectivity and industrial park development. - Tier 3 Cities and Peripheral Zones:
₹300 – ₹800 per sq. ft.
Lower rates typically found in emerging industrial zones or SEZ peripheries. - Rural or Semi-Urban Industrial Corridors:
₹100 – ₹400 per sq. ft.
Common in government-promoted industrial parks or areas under development, such as along freight corridors or highways.
2. Factors That Influence Price per Sq. Ft.
Several variables influence the final rate of industrial land:
- Zoning Classification: Legally zoned industrial land commands higher value than agricultural or mixed-use plots.
- Road and Port Connectivity: Land near expressways, railheads, or ports is more valuable due to logistics advantages.
- Proximity to Industrial Clusters or SEZs: Integration with industrial belts enhances price potential.
- Infrastructure Availability: Presence of power, water, drainage, and telecom infrastructure increases price.
- Government Incentives and Industrial Policies: Locations under state-sponsored industrial schemes may have subsidized or regulated rates.
- Land Parcel Size: Bulk plots (acres) usually have lower per sq. ft. rates than smaller plots due to scale efficiencies.
3. Price Trends in Government Allotted Industrial Parks
When industrial land is allotted by state industrial development corporations, the pricing is often fixed and published. Examples include:
- MIDC (Maharashtra): ₹1,500 – ₹6,000 per sq. ft. depending on region.
- KIADB (Karnataka): ₹400 – ₹2,500 per sq. ft.
- SIDCO (Tamil Nadu): ₹600 – ₹3,000 per sq. ft.
- RIICO (Rajasthan): ₹200 – ₹1,200 per sq. ft.
These prices are generally non-negotiable, linked to infrastructure development cost and policy objectives.
4. Market Rate vs. Government Rate
- Market Rate: Determined by demand-supply dynamics, investor interest, and competitive bidding. Often higher than government rates, especially in private industrial parks or zones near highways and logistics hubs.
- Government Rate: Regulated and often subsidized to promote industrialization. May include long-term lease options instead of outright sale.
