Recent SEZ Policies to Significantly Impact Real Estate and IT Sector
Recently, the government enforced new SEZ (Special Economic Zone) policies that are expected to reinvigorate both the real estate and IT sectors. The government's decision to eliminate the minimum land requirement of 10 hectares for developing IT and ITES (IT-Enabled Services) SEZs is anticipated to provide a much-needed boost to these industries. These policies will be enacted immediately in the top seven cities.
SEZ Policy Reforms Summary
- Built-Up Area Requirement:
- Tier I Cities: 100,000 square meters
- Tier II Cities: 50,000 square meters
- Other Small Cities: 25,000 square meters
The new SEZ reforms especially benefit smaller IT companies, making it easier for them to launch their own SEZs. Previously, only large IT firms could establish SEZs due to the high minimum land requirement of 25 acres.
Developer Benefits
Under the new policy, developers can acquire smaller land parcels and convert them into SEZs. This means developers can now develop SEZs with land parcels as small as 7 acres. Additionally, the Floor Space Index (FSI) rates for IT parks have increased, with Chennai at 3.25 and Bangalore at 3.75.
Mixed-Use Development Opportunities
The new SEZ reforms also pave the way for more mixed-use developments. Once SEZ developers have completed the minimum built-up area of 100,000 square meters, they are allowed to convert the remaining land parcels into mixed-use projects.
These changes will not only benefit large cities but also smaller ones, leading to more mixed-use projects across the country. This provides people the chance to live where they work, enhancing the overall quality of life and urban planning.