CMDA Signals Green for Converting Vacant IT Buildings to Shopping Malls and Office Spaces
Buildings initially constructed for Information Technology may soon undergo a transformation into shopping malls and office spaces. The Chennai Metropolitan Development Authority (CMDA) has approved the conversion of vacant IT buildings for other purposes.
CMDA approves conversion of vacant IT buildings to malls.
In response to a request from the CREDAI Chennai Chapter, CMDA has decided to grant permission for the conversion of IT buildings located in and around the city.
Following this approval, builders will now have the ability to convert such vacant IT buildings into shopping malls and various office spaces. According to the builders, a majority of these buildings will likely be transformed into malls.
Many IT buildings were constructed with state government incentives, aimed at promoting the IT sector. In addition to these incentives, the Floor Space Index (FSI) for IT buildings was also relaxed, allowing for an FSI of 3.75, significantly higher than the standard 1.5 for normal buildings. This relaxation encouraged developers to embark on more IT projects.
With CMDA approval, more shopping malls in Chennai are likely.
However, due to a lack of tenants, many of these buildings remain vacant. The recent decision was made during the last CMDA Meeting, where builders were granted permission to convert IT buildings into shopping malls. The FSI availed by developers will be treated as premium FSI, considered on a case-by-case basis.
Former state chief of CREDAI, T Chitty Babu, welcomed the move, stating it is a positive step. Akshaya Private Limited CEO also praised the decision.
Another Chennai-based developer, Radhakrishnan, applauded the move, noting that it will be beneficial for developers. He added that converting IT buildings into residential apartments is challenging, making conversion into other uses the best option. By converting these vacant IT buildings into schools, banks, offices, or shopping malls, builders will more easily find occupants, making it highly beneficial for developers in the state.