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, Government introducted two new slabs in TDR as 3% To 5%.
New TDR Rules in Hyderabad & Telangana Proposed on Mar 21 2026
On March 21 2026, Telangana Government released the new update on Existing & Proposed TDR Rules in Feb 2026. It has released G.O.Ms.No.95, making key amendments to the Telangana Building Rules 2012. Newly proposed rules reduce financial burden on builders and support real estate growth.
1. Decreased TDR Slab - Government introduced 2 new slabs instead of 10% mandate. For 10 To 20 Floors, builders required to purchase 3% TDR that is 3% of the build up area on area above 10th floor. For Above 20 Floors, builders required to purchase 5% TDR that is 5% of the build up area on area above 20th floor.
Developers now required to submit the 50% TDR during the permission stage and remaining 50% required to submit before the OC(Occupancy Certificate) is released.
2.Re Define High Rise Building - Now a building is considered as High Rise building if it is 21 meters or above only. Earlier considered as High Rise building if it is 18 meters or above. As well, Roof Top Structures like water tanks, cooling towers, lift rooms, boiler rooms, chimneys are not considered in this height. 18 To 21 meters height buildings on 750 square meters to 2000 square meters will be allowed only through TDR use. As well, required to meet the parking and other rules.
3. Relaxations on Setbacks - High Rise Buildings can avail up to 10% relaxation in setbacks by using TDR. But should have 7 meters setback on all sides of high rise building. Non High Rise Buildings also can avail setbacks by using TDR when minimum prescribed limits are met only.
4. Extra Floors Construction Based on Road Width - For plots above 2000 square meters, can have extra floors by using TDR like below
Up to 3 extra floors allowed on 40 feet road
Up to 4 extra floors allowed on 60 feet road
Up to 5 extra floors allowed on 80 feet road
TDR Cost Analysis & Calculation 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.
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 %
3%
As per new Telangana rule
TDR Required
3,000 sft
3% of 1,00,000 sft
TDR Market Rate (Ex. Premium Zone)
₹5,000 per sft
Varies by area
Total TDR Cost
₹1,50,00,000 (₹1 Cr 50 Lacs)
3,000 sft × ₹5,000
Frequently Asked Questions About TDR in Hyderabad
1. What is the cost of TDR in Hyderabad?
Due to the new 3% to 5% mandatory TDR requirement for high rise projects (more than 10 floors), TDR costs in Hyderabad have increased majorly around 30% to 40 % of the certificate value, with prices varying by location. For example, areas like Kukatpally and Miyapur see an estimated impact of Rs.90 to Rs.140 per sq. ft.
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.
