Scarcity of TDRs makes them a precious commodity in Hyderabad real estate market

State-enforced transferable development rights (TDRs) are in high demand due to rising demand and limited supply for development projects.

Transferable development rights (TDRs), which have been a State-enforced option for people losing their properties for development projects, are suddenly sought after now, due to rising demand and plummeting supply.

Several builders are desperately looking to buy TDRs wherever available, but the right holders are unwilling to part with them.

State government has replaced monetary compensation in lieu of property acquisition with TDRs, to avoid the huge pay-out burden associated with project components of Strategic Road Development Plan implemented by the Greater Hyderabad Municipal Corporation.

By definition, TDRs are awarded specifying the built up area an owner of a site or plot can sell or dispose or utilise elsewhere, in lieu of surrendering land free of cost which is acquired for public purpose. The award is in the form of a TDR certificate issued by the competent authority.

In 2017, the government had spelt out a TDR policy, according to which properties acquired for master plan road widening would be compensated by TDRs worth 400% of the built up area surrendered. Those part of water bodies and buffer zones were valued at 200% and for heritage structures, an equivalent built up area would be awarded.

Those receiving the TDRs may utilise the same elsewhere or sell/transfer them to the builders or individuals who need them. By obtaining TDRs, one may enhance the permissible built up space by two more floors with the same setback spaces and road width.

Subsequent amendments were carried to make TDRs more attractive, one of which is extension of the utilisation to the area covered by Hyderabad Metropolitan Development Authority. An online TDR bank was created on the GHMC’s website where transactions could take place.