Transferable Development Rights (TDR) are given to landowners who give their land to the government for public purposes such as roads, infrastructure projects, or open spaces. Instead of paying money, the government provides TDR benefits. Using these rights, landowners can increase the allowed built up area beyond the normal permitted limits.
What is New TDR Rule in Hyderabad?
As per the new TDR policy, for buildings with more than 10 floors, builders must have to buy TDR for 10% area from above 10 floors. This policy is especially applicable for the upcoming projects.This means taller buildings require purchasing more TDR, which increases the cost.
How is TDR Calculated in Hyderabad
In North, South and East Hyderabad, high rise developments are limited, so this new TDR policy is unlikely to have a major effect in these regions. However, the situation is very different in West Hyderabad, where large scale and high rise developments are happening rapidly. As a result, property prices in West Hyderabad will be significantly impacted.
TDR Calculation in Hyderabad with Example
Parameter
Value
Explanation
Total Floors Planned
20 Floors
Example high-rise project
Floors without TDR
First 10 floors
No TDR required till 10 floors
Extra Floors (TDR applicable)
10 Floors
From 11th to 20th floor
Built-up per Floor
10,000 sft
Assumed construction area
Total Extra Built-up Area
1,00,000 sft
10 floors × 10,000 sft
Mandatory TDR %
10%
As per new Telangana rule
TDR Required
10,000 sft
10% of 1,00,000 sft
TDR Market Rate (Ex. Premium Zone)
₹5,000 per sft
Varies by area
Total TDR Cost
₹5,00,00,000 (₹5 Cr)
10,000 sft × ₹5,000
Areas such as Gachibowli, Financial District, Kokapet, Nanakramguda and Neopolis will be the most affected. Many ongoing and upcoming projects in these locations feature 40 to 50 floors. For buildings above 10 floors, developers will need to pay 10% TDR on the additional built up area. Since this amount can run into crores of rupees, builders are likely to pass this extra cost on to buyers.
Let us see how much the amount per square feet will increase If this new TDR policy comes to rule.
Kokapet: Rs.120 to Rs.140 per sq.ft
Narsingi: ₹100 to ₹120 per sq. ft
Rajendra Nagar: ₹70 to ₹90 per sq. ft
Nanakramguda: ₹380 to ₹420 per sq. ft (highest impact)
Nallagandla: ₹130 to ₹150 per sq. ft
Miyapur: ₹180 to ₹210 per sq. ft
Kollur: ₹35 to ₹45 per sq. ft
Tellapur: ₹120 to ₹135 per sq. ft
Kukatpally: ₹200 to ₹230 per sq. ft
Neopolis: ₹120 to ₹140 per sq. ft
All these prices are estimates only and may change later after policy implementation. However, upcoming residential projects, especially high rise developments in West Hyderabad, will become expensive if the new TDR policy is enforced.
For example, if the extra floors create 1,00,000 sq. ft, the builder has to purchase TDR for 10,000 sq. ft. The TDR price depends on the area, and in places like West Hyderabad it can be very high.
Frequently Asked Questions
1. What is the TDR Policy of Telangana?
Telangana’s TDR policy allows landowners to receive development rights instead of cash when their land is taken for public projects, which builders can use to construct extra built up areas.
2. What is the formula for TDR?
TDR is calculated as 10% of the additional built up area constructed above the 10th floor in high rise buildings.
Disclaimer: The information in this article is based on our research and publicly available sources and is for informational purposes only. We request you to verify the details independently and make financial or investment decisions based on your own research and judgment.
