TDR(Transferable Development Rights) is a method in which developers can purchase the development rights from specific plots located in a designated source area and use those rights in a target development area to construct larger buildings for their new development.
The basic idea behind a Transferable Development Rights program is that land comes with different property rights that can be separated and transferred. This system is used to manage land use more effectively by supporting planning & zoning rules, helping control urban growth and perfect land.
What Is TDR Policy in Hyderabad
The TDR Policy in Hyderabad states that for any residential projects above 10 floors, builders are required to purchase TDR from the government. There is no need to buy this TDR upto 10 floors and after 10 floors, the builder should buy 10% of TDR of the total built up area above the 10th floor.
What Is New TDR Rule in Hyderabad
If anyone in Hyderabad is trying to construct buildings of more than 10 floors, they have to buy 10% of TDR and apply for the approval from the Government. So, for instance if anyone is constructing a 40 floor building 10 floors are exempted from paying the TDR and for the buildup area which comes from the remaining 30 floors they have to buy 10% of TDR and apply for the approval.
The new TDR rule in Hyderabad (2026) requires builders to purchase TDR equal to 10% of the built up area for residential projects exceeding 10 floors. This rule will have a major impact on high rise developments in West Hyderabad, especially in areas like the Financial District, Nanakramguda & Kukatpally. It is aimed to encourage greater use of TDR for supporting public infrastructure projects.
TDR Cost Analysis in Hyderabad
After implementing NewTDR policy in Hyderabad, prices for residential projects tend to grow in developing areas. Depending on the builder, plot prices may also increase. The TDR cost analysis in Hyderabad shows that the impact of Transferable Development Rights(TDR) is different across West Hyderabad locations.
Areas with more high floor residential buildings like Nanakramguda, Kukatpally and Miyapur face higher TDR costs per sq ft. In areas like Nanakramguda, the impact of TDR on home prices can be clearly seen.
For example, if the base price of an apartment is around Rs.9000 per sq ft, the additional TDR cost for high rise projects is estimated at about Rs.400 per sq ft. After applying TDR, the effective price increases to nearly Rs.9400 per sq ft. For a 1500 sq ft apartment, this results in an extra cost of around Rs.6 lakh added to overall price.
Frequently Asked Questions About TDR in Hyderabad
1. What is the cost of TDR in Hyderabad?
Due to the new 10% mandatory TDR requirement for high rise projects (more than 10 floors), TDR costs in Hyderabad have increased majorly around 55 to 60 % of the certificate value, with prices varying by location. For example, areas like Kukatpally and Miyapur see an estimated impact of Rs.180 to Rs.230 per sq. ft adding around Rs.5.5 to 6.5 crore per acre to project costs.
2. What are TDR Bonds in Telangana?
TDR Bonds in Telangana are digital certificates issued by urban local bodies like GHMC to landowners who issue their land for public projects without cash compensation. These certificates allow the owner to build extra floors or sell them to developers for cash.
3. How many floors can be built in 200 square yards in Hyderabad?
A 200 square yard plot typically allows construction up to Ground +2 floors making it a total of 3 floors and setbacks of 2 metres frontside and 1 meter for other sides.
