New TDR policy to boost real estate sector
City real estate will get a major boost as the state government has decided to bring in the a more generous transfer of development rights (TDR) policy. In the new TDR policy, the Greater Hyderabad Municipal Corporation will give double transfer development rights to owners who lose their land or property in nala-widening and infrastructure projects. To gain the confidence of property and land owners, the GHMC will also set up TDR banks online, where builders can purchase the TDR.
According to a GHMC official, land and property acquisition is very difficult. The corporation is also short of money for its major flagship programmes such as Strategic Road Development Plan (SRDP), double bedroom houses for urban poor, nala widening, corridor development programme and others. The civic body requires about `2,000 crore to acquire private land and properties for these projects and it is hoped that the new TDR policy will make it easier and less costly to acquire land.
A senior GHMC official told Deccan
Chronicle that the corporation is ready to give four times the TDR to owners whose properties are alongside roads and give one and half times TDR to owners of properties that fall in the buffer zones of nalas and others water bodies. He said that for instance a ground plus three floors can be constructed on 1,000 sq ft of land, but through the new TDR rules, the owner can erect a six floor construction without changing the setback. He said the corporation would allow the owner of the surrendered land to either sell his rights to a builder or construct an additional structure on his land available in another location.
He confirmed that the GHMC will develop a purchase mechanism where online TDR banks will be established for easy approach of builders.
Currently, under the existing policy, the corporation allows just one and a half times TDR. So if an owner loses 1,000 sq ft of road side land, the corporation allows him 2,500 sq ft as TDR in another location. These proposals have already got the state government's approval and a Government Order in this regard will be issued in a couple of days.