KOCHI: In a measure that could provide a fillip to the IT sector in the state, the local self-government department (LSGD) has agreed in-principle to increase the floor area ratio (FAR) from 4 to 7 for IT and tech parks, as requested by the information technology department.
The announcement on Tuesday was welcomed by industry experts who pointed out that the move, once it materialises, would place the state among the more liberal FAR regimes in India.
IT special secretary Seeram Sambasiva Rao told TNIE, “We are expecting an amendment of rules soon. It will help us use the available land in a better way. More space can be constructed in the available area. Basically, we are exploring vertical growth. Land availability, as you know, is a serious constraint in our state. We need to promote vertical growth in the tech space.”
In the past, FAR in the state was 1.5, which was amended in 2013 and raised to 4. Industry observers believe this move could catalyse a new wave of IT park developments and corporate campus investments in Kochi and Thiruvananthapuram, aligning Kerala’s infrastructure policy with its long-term digital economy goals.
“The Kerala government’s move to enhance FAR from 4 to 7 is a well-calibrated and progressive reform that will unlock significant potential for the state’s IT real-estate ecosystem,” said Srinivas Anikipatti, Knight Frank India’s executive director for Tamil Nadu and Kerala. “Kerala has always had a strong talent pool and quality of life — this policy now provides the physical scale to match that intellectual capital.
By enabling vertical expansion in land-constrained markets, the state positions itself to attract global occupiers and investors who seek efficiency, sustainability, and long-term growth opportunities. It’s a decisive step that signals Kerala’s readiness to compete with established IT hubs across India,” Anikipatti said.
According to observers, a higher FAR means developers and institutions can build more floor-area on the same plot of land. For IT parks, software development centres, or multi-tenant technology campuses, this means greater flexibility to accommodate more companies (including multiple-tenant models) or larger single clients within the same land footprint and improved utilisation of expensive land, especially in a state like Kerala where land supply in urbanised/Special Economic Zone (SEZ)/IT clusters is constrained.
