TDR rule changes give developers more buildable area, flexibility

(King Johnson Koyyada, 9030034591)

Telangana is easing building regulations with a fresh set of amendments that expand the use of Transferable Development Rights (TDR). The changes signal a shift towards more flexible, developer-friendly urban planning. Issued through G.O. Ms. No. 95, the amendments revise key provisions of the Telangana Building Rules, 2012, following industry feedback on rigid norms and limited TDR utilisation.

The most visible change is in the definition of high-rise buildings. Structures above 21 metres are now classified as high-rise, while buildings between 18 and 21 metres are permitted on plots ranging from 750 to 2,000 sq m through TDR, subject to parking and compliance norms.

The amendments significantly increase design flexibility. Developers can now use TDR to relax setback requirements. High-rise buildings can get up to 10 per cent relaxation, with a minimum 7-metre setback maintained. Non-high-rise buildings also get relief in road widening cases.

A key benefit is the ability to build additional floors. Projects on plots above 2,000 sq m can add up to three floors on 40-ft roads, four floors on 60-ft roads and five floors on 80-ft roads, based on TDR usage and compliance with fire and aviation norms.

The policy also brings flexibility in cases where master plan roads are modified or removed. Developers can either pay applicable charges or submit equivalent TDR, reducing uncertainty in project approvals.

From a financial perspective, phased TDR submission improves cash flow. Developers can now submit 50 per cent of TDR at approval stage and the remaining before occupancy certification, easing upfront cost pressures.

The amendments are expected to strengthen the TDR ecosystem. Landowners impacted by road expansion or buffer restrictions can monetise land through TDR, while developers gain additional buildable potential.

For the real estate market, the impact is clear. Higher permissible built-up area improves project viability, especially in high-demand urban zones. Setback relaxations and additional floors allow better land utilisation, which can support supply in constrained micro-markets.

Projects more viable

• High-rise definition revised to 21 metres and above.
• 18–21 m buildings allowed on 750–2000 sq m plots via TDR.
• Up to 10% setback relaxation allowed for high-rises.
• Additional floors permitted based on road width.
• 50% TDR at approval, 50% before occupancy.
• Option to pay charges or use TDR if master plan roads change.