What objections do industrial buyers raise most often?

Hello LandBank

1. “The Price Is Too High for This Area”

Buyers often compare your asking price with recent local deals or neighboring land listings and claim it’s overpriced.

  • Reference to lower nearby rates
  • Expectation of discount for bulk purchase
  • Perceived mismatch between location and quoted value
  • Requires justification via comps or added value

2. “There’s No Clear Title or Documentation”

Lack of clean title, incomplete paperwork, or pending approvals can make buyers hesitant to move forward.

  • Missing or outdated Patta / Khata / EC
  • No NA (non-agricultural) conversion certificate
  • Disputes among family members (in ancestral property)
  • Delays in verifying or registering sale

3. “There’s No Proper Road Access”

Industrial buyers require reliable road connectivity for logistics and vehicle movement. Poor or unclear access is a major red flag.

  • Narrow approach road or private access issues
  • Inability to bring in trucks or machinery
  • Absence of legal Right of Way (RoW)
  • Adds cost for internal road development

4. “Power and Water Infrastructure Isn’t Ready”

Buyers prefer land with basic infrastructure in place or available nearby. Lack of utilities increases setup time and capital cost.

  • No nearby HT power line or transformer
  • Water source (borewell or pipeline) not assured
  • No drainage or stormwater plan
  • Pushes buyers toward more developed alternatives

5. “It’s Still Agricultural Land—Needs Conversion”

If the land is not converted to industrial (NA) use, buyers worry about regulatory delays and development restrictions.

  • Time-consuming conversion process
  • Risk of rejection or legal non-compliance
  • Buyer unwilling to handle conversion post-purchase
  • Preference for “ready-to-develop” sites

6. “There’s No Tenant Demand in This Area”

Investors or developers who plan to lease or build-to-suit (BTS) often object if the region lacks proven tenant interest.

  • No presence of logistics, warehousing, or industrial clusters
  • No leasing benchmarks to calculate ROI
  • Concern over long gestation period
  • Need to justify income potential

7. “The Shape or Terrain Is Not Suitable”

Odd-shaped, uneven, or fragmented plots can be difficult to develop efficiently, especially for factories or warehouses.

  • Irregular boundaries limit construction design
  • Sloped land increases grading and leveling costs
  • Frontage too narrow for entry/exit
  • Objection even if location is good

8. “The Deal Isn’t Flexible Enough”

Rigid terms related to pricing, payment schedule, or deal structure may deter serious buyers who expect negotiation room.

  • No installment or deferred payment option
  • High upfront expectation without site preparation
  • Lack of incentives (e.g., fencing, compound wall)
  • Buyer wants flexibility based on site potential

9. “It’s Taking Too Long to Close Due Diligence”

Delays in providing legal documents, site access, or approvals can frustrate serious buyers and lead them to withdraw.

  • Slow response to document requests
  • Incomplete EC or title verification package
  • Hesitation to show originals or provide soft copies
  • Signals lack of readiness or seller indecision

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