Industrial Land Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Industrial Land in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Industrial Land Trend for the Second Half of 2022

Industrial land prices showcased an uprising trend in the last two quarters of 2022 even in the midst of increasing interest and inflation rates. The shadows of inflation led to a global economic slowdown and a shortage in the labour market. The rise in construction costs such as steel, concrete, and other building materials has also contributed to the fluctuating price trend of industrial land. The developers thus, looked for direct collaborations with the material suppliers and labour community to decrease the construction time and in turn the price of industrial land.

Industrial Land Price Chart

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In addition to this, the duration of construction, location of land, and consistent backlogs in construction due to low availability of labour further adversely affected the price trend of industrial land despite the high demand from the consumers. Thus, the price trend of industrial land remained uncertain due to uneven and unclear market conditions.

Analyst Insight

According to Procurement Resource, the price of industrial land is estimated to remain high globally given the mismatch in the market’s supply-demand dynamics.

Industrial Land Trend For the First Half of 2022

All economies are very fragile in the aftermath of the covid-19 pandemic, and with the Russia-Ukraine war causing unprecedented price rises in the energy bills, the countries are now reeling under pressure to save their economies from the possibility of a global recession. In India, the cost of construction increased by 10-12%, and the Whole Price index for raw materials entered double digits, which prompted the developers to raise the prices.

The Indian domestic market witnessed a 26% (weighted average) increase in the rates of industrial land necessitated by the increasing market prices and cost inflation. The industrial land prices went from 8100-21000 INR/sqmt to 9500-25000 INR/sqmt during the said period. Vietnam witnessed a 20-26% hike in industrial land prices during the year’s first half. Hence, the price trend for Industrial land tipped towards the higher side of the scale owing to inflationary pricing amid the continuing economic meltdown.

Procurement Resource provides latest prices of Industrial Land. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.