HYDERABAD: The Telangana government has revised the Building Rules of 2012, enhancing the usage of transferable development rights (TDR) and relaxing current building parameters. These changes are expected to spur real estate activity in Hyderabad and surrounding urban areas, offering builders increased flexibility in their projects.
The recent order from the Municipal Administration and Urban Development (MA&UD) department, issued in GO 95 on Saturday, clarifies the definition of high-rise buildings as those reaching 21 meters or more, excluding components like chimneys and water tanks. This adjustment comes following numerous requests to optimize TDR usage and introduce more flexible construction standards.
The government now permits construction of buildings ranging from 18m to 21m on plots between 750 square meters (sq m) and 2,000 sq m solely through TDR, as long as mandatory parking and other requirements are met.
Additionally, TDR can now facilitate setback relaxations. Non-high-rise structures are eligible for setback relaxations via TDR, while high-rises may receive up to a 10% setback relaxation, maintaining a minimum seven-meter setback on all sides.
If there are changes to master plan roads, applicants now have the choice to either pay development or conversion charges or provide equivalent TDR instead of cash payment, allowing for greater financial flexibility for builders.
Norms regarding additional floors through TDR on larger plots (over 2,000 sq m) have also been revised: three extra floors are allowed on 40-foot roads, four on 60-foot roads, and five on 80-foot roads, contingent on fire safety and regulatory approvals.
For high-rise buildings, those with 10 to 20 floors must allocate 3% TDR for areas above the 10th floor, while buildings exceeding 20 floors must allocate 5% TDR beyond the 20th floor. Developers are required to submit 50% of the needed TDR with their building permission applications and the remaining portion prior to obtaining the occupancy certificate (OC).
CREDAI Applauds the Decision
The Confederation of Real Estate Developers’ Associations of India (CREDAI) Hyderabad has applauded the government’s initiative, characterizing it as a significant step toward optimizing TDR and facilitating a better business environment in the real estate sector. The newly established regulations offer essential clarity and incentives for sustainable high-rise developments statewide.
“We express our gratitude to the government for permitting the submission of 50% of the TDR at the time of permission and the balance before the OC, thereby alleviating the initial financial burden on projects. This GO reflects the government’s commitment to establishing Telangana as a premier global real estate hub. By integrating TDR with road-widening, modifications to master plans, and height relaxations, the state is promoting synergy between urban infrastructure and private development,” stated N. Jaideep Reddy, president of CREDAI Hyderabad.
