CMDA has signaled green for converting vacant IT buildings to shopping malls and office spaces.
Buildings built for Information Technology may soon be turned into shopping malls and office spaces. The Chennai Metropolitan Development Authority –CMDA has sanctioned the conversion of IT buildings into other purposes.
Considering the request of CREDAI Chennai Chapter, the CMDA decided to grant permission for converting the vacant IT buildings which were built in and around the city.
The builders will now be able to convert these vacant IT buildings to shopping malls and other office spaces. Builders said that most of such buildings will be converted into malls.
Most of the IT buildings were built with state government incentives. This was done for the purpose of promoting the IT sector.
Besides incentives, floor space index (FSI) for IT buildings also was relaxed. FSI for IT buildings was 3.75. This is far higher than the 1.5 of normal buildings.
This also encouraged the developers come up with more IT projects. Due to the lack of lessees, many of these buildings are lying vacant.
The decision was taken during the last month’s CMDA Meeting. Though the builders are permitted to convert these buildings to shopping malls, the FSI availed by the developers will be treated as premium FSI. This will be treated on case by case basis.
Commenting on the move of CMDA, former state chief of CREDAI T Chitty Babu said that this move is a welcome move. Akshaya Private Limited CEO hailed the move.
Another Chennai-based developer Radhakrishnan also applauded this move. He added that this move will be beneficial for the developers. In his opinion the conversion of IT buildings into residential apartments is difficult. So the best possible option is convert them into other uses.
By converting these vacant IT buildings to schools, banks, offices or shopping malls, the builders will be able to find takers. This will be, thus, highly beneficial for the builders in the state.