Hyderabad: A recent policy change by the Telangana government regarding Transferable Development Rights (TDR) has led to a sharp rise in TDR prices across Hyderabad, drawing strong criticism from real estate developers.
The new rules make it mandatory for certain high-rise projects to use TDR and also allow its use for setback relaxations. While the move is aimed at compensating landowners and supporting urban infrastructure development, it has significantly altered market dynamics.
Why Prices Are Rising
With demand for TDR now compulsory in many projects, prices have surged rapidly. Earlier, TDR certificates were available at lower rates due to limited demand, but the new policy has pushed prices upward due to increased mandatory usage.
Builders’ Concerns
Developers argue that the policy has:
- Increased construction costs, especially for high-rise buildings
- Disrupted project budgeting and timelines
- Forced them to pass on additional costs to homebuyers
Industry estimates suggest that the added burden could raise property prices significantly, making housing less affordable.
Government’s Stand
The government maintains that the policy is designed to:
- Ensure fair compensation to landowners whose land is acquired for public projects
- Reduce reliance on cash payouts
- Promote planned urban development
Bigger Impact
The controversy highlights a growing tension between urban planning goals and real estate economics. While the policy may strengthen infrastructure development in the long run, its immediate impact is being felt through rising costs and uncertainty in the real estate market.
As discussions continue, builders are urging the government to reconsider certain provisions to strike a balance between development needs and affordability.
