TDR (Transfer of Development Rights) refers to the development transfer rights provided with financial benefits to landowners who are displaced due to development projects. In the Greater Hyderabad Municipal Corporation (GHMC) limits, the government acquires land for road widening, road development, lake expansion, and other developmental works. Instead of spending funds on acquiring land, the government provides TDR at double the value of the land being acquired, based on government valuation.
For patta lands, 400% TDR is provided, and for lands in lake beds and village commons, 200% TDR is given. This allows landowners who lose their land to receive immediate compensation in the form of TDR. The TDR can be used for the construction of additional floors anywhere within the GHMC or HMDA limits.
Who needs TDR
TDR is useful for builders and construction companies when the available land area is small, and there is no opportunity to construct additional floors. According to government regulations, only two floors can be built on a plot of 200 square yards. However, with the help of TDR, one can construct an additional floor if parking facilities are provided.
On plots of 300, 400, and 500 square yards, TDR can be used to construct four or five floors. In the Greater Hyderabad region, buildings in the range of 300 to 400 square yards frequently make use of the TDR option. For plots up to 600 square yards, a maximum of five floors can be built. If there is more land available, developers who have approval for six floors can construct two more floors using TDR without requiring additional setbacks.
Similarly, with approval for seven floors, developers can build up to nine floors, for eight floors approval they can build up to 10, and with approval for 10 floors, they can build up to twelve floors. Many apartments in the city are constructing additional floors using this system. According to officials, even builders constructing high-rise buildings are utilising TDR to build additional floors.
How is TDR value calculated?
Generally, the government land value is calculated per square yard, and this value varies depending on the area. In the Greater Hyderabad region, when land acquisition occurs, the government provides the landowner with TDR at four times the land value. For instance, in Banjara Hills, the government land value is Rs 41,000 per square yard. If the government acquires 100 square yards of land from an individual for road widening, the individual will receive TDR worth 400 square yards at the government price. This means the value of the TDR given to the landowner will be Rs 1.64 crore.
If the market value of the land in that area increases in the future, the value of the TDR will also increase. For example, if the owner of a 200-square-yard property in Attapur wants to buy TDR from the Banjara Hills owner, the value of the 200 square yards in Attapur at the government rate is Rs 32 lakh. The equivalent amount of TDR from Banjara Hills will suffice. That means, the Attapur land owner will need to buy TDR equivalent to 19.51 square yards from Banjara Hills.
In TDR transactions, buyers and sellers can negotiate the price based on each party’s requirements and opportunities. The TDR price is decided based on mutual agreements, considering the needs of both parties.
