In the city with land being sold at a premium, builders and developers prefer to buy transferrable development rights (TDR) which is certain amount of additional built-up area, in lieu of area surrendered for public purpose, from property owners to add additional built-up area. TDR worth over Rs 250 crore, including Rs 150 crore in the past one year, has been sold in Greater Hyderabad Municipal Corporation (GHMC) limits in the past five years. The extra built-up area could be either utilized by the land owner or transferred to others for a price.
GHMC officials said there has been a huge demand for TDR in the city as it would be a win-win situation for government, property owners and builders. Government need not pay cash compensation to property owners for taking over their properties, while property owners get 400% value of their property. If it is cash compensation, they would be entitled for only 200% compensation, which is generally paid on registration value. Finally, developers need not pay land cost, if they buy TDR, they could get additional built-up area at much cheaper rate from property owners.
“For the benefit of land owners and developers (purchasers), a TDR bank website has been created on the directions of MAUD minister KT Rama Rao. Telangana is the second state after Maharashtra in terms of utilising TDR certificates for property developments. Niti Aayog is also studying the Telangana model for replicating it in other major cities in the country,” GHMC chief city planner S Devender Reddy told STOI.
He said earlier Telangana used to give 200% TDR, but the municipal minister issued orders enhancing it to 400% for the benefit of property owners. Official sources said while developers were selling the developed properties between Rs 5,000 and Rs 7,000 per square foot (sft), the land owners were getting about Rs 1,000 to Rs 2,000 per sft depending on the site and location.
GHMC and HMDA had issue TDR certificates to property owners who lose their property in land (property) acquisition for road widening. This TDR is 400% than their property for sites affected under master plan roads and 200% for sites affected under conservation and greenery development such as lakes development, nala shores. TDR is in the form of additional built up area, which can be utilised by land owners or they could sell or issue it to others anywhere irrespective of jurisdiction of the civic body. For instance, for 100 square yards plot area, 900 sq ft additional built-up area is allowed apart from their normal eligibility.