Many building projects in Chennai held up by the rule change
Posted on: 03/Oct/2019 10:17:04 AM
Builders in the Chennai city are facing issues because of rule change now. The shocking piece of information is about 30 projects worth Rs 300 crores to construct 3 lakhs sq ft of office and commercial space at various locations in the Chennai city are now struck up. This is due to the words ‘mixed residential’ that were left out from the new rules governing building permissions.
Earlier, development regulations of the Chennai Metropolitan Development Authority or CMDA were there and this rule has been replaced by Tamil Nadu Combined Development and Building Rules 2019 now. Point to be noted is an omission in this new rule has hit the market already. This was as per the realtors.
It must be taken into account that getting clearance for the commercial buildings in the areas that were notified as mixed residential by the CMDA has become a difficult process. Information is the word ‘Mixed’ has been removed from the new rules. It was later mentioned by Mr. Ramprabhu, chairman of Builder’s Association of India’s Southern Centre that the developers were struck when there is more demand for commercial construction in the core city. It must be noted that the core city is largely mixed residential.
Information collected is government took a decision not to continue with the mixed residential zones as they ended up as most commercial zones affecting the residential places. This was as per the sources belonging to the housing and urban development department.
Building projects in various places like Adyar, Ashok Nagar, Anna Nagar, and Purasawalkam got held up and this was confirmed by the realtors. It is worth noting here that this issue cropped up after CMDA rejected planning permissions for commercial ventures in ‘mixed residential’ areas by mentioning that the new category was not listed in the new commercial building rules.
Point is while developmental regulations of CMDA had the category ‘mixed residential’, the new building rules land use zones include ‘residential’ but not ‘mixed residential’. With special sanction from CMDA, colleges and research institutions were also allowed in the mixed residential areas is known.
A drop of 76% in the office space supply was recorded during the first half of 2019 when compared with the same time period of 2018. This was as per a report prepared in July by real estate consultant Knight Frank. The report also highlighted how the Chennai office market recorded 6% y-o-y growth in the transactions. This was positive growth for the first time since 2017.
