Telangana Government Amends Building Rules to Streamline TDR and Relax Construction Parameters
The state government of Telangana has introduced significant amendments to the Telangana Building Rules, 2012, aimed at rationalizing the use of transferable development rights (TDR) and easing building parameters under the existing framework. These regulatory changes are anticipated to invigorate real estate activity in Hyderabad and other urban centers, while providing builders with increased flexibility for their projects.
Key Changes in High-Rise Definitions and TDR Usage
In a move that clarifies construction standards, the municipal administration and urban development (MA&UD) department, through Government Order 95 issued on Saturday, has redefined high-rise buildings. According to the order, a "high-rise building" is now defined as a structure measuring 21 metres or above, excluding non-functional components such as chimneys, cooling towers, lift machine rooms, and water tanks. This revision comes in response to numerous stakeholder requests for the rationalization of TDR usage and the introduction of more adaptable construction parameters.
The updated regulations permit buildings with heights between 18 metres and 21 metres on plots ranging from 750 square metres to 2,000 square metres to be constructed exclusively through TDR, provided they comply with mandatory parking and other essential requirements. Additionally, TDR can now be utilized for setback relaxations. Non-high-rise buildings may obtain setback relaxations via TDR while adhering to road-widening norms, whereas high-rises can achieve up to a 10% setback relaxation through TDR, maintaining a minimum seven-metre setback on all sides.
Enhanced Financial Flexibility and Revised Norms for Large Plots
In scenarios where master plan roads have been altered or downsized, applicants now have the option to either pay the requisite development or conversion charges or provide equivalent TDR instead of cash payments. This adjustment offers builders a more financially flexible solution, potentially reducing upfront costs and streamlining project approvals.
Norms for additional floors using TDR on large plots exceeding 2,000 square metres have also been revised. Specifically, three additional floors are permitted on 40-feet roads, four on 60-feet roads, and five on 80-feet roads. All such permissions are contingent upon compliance with fire safety regulations and other mandatory checks to ensure structural integrity and public safety.
Structured TDR Loading for High-Rise Developments
For high-rise constructions, the new rules mandate specific TDR loading requirements. Buildings with 10 to 20 floors must load 3% TDR on the area above the 10th floor, while those exceeding 20 floors must load 5% TDR beyond the 20th floor. To facilitate project initiation, developers are required to submit 50% of the necessary TDR with their building permission applications, with the remaining balance due before the issuance of the occupancy certificate (OC).
Industry Response and Future Implications
The Confederation of Real Estate Developers' Associations of India (CREDAI) Hyderabad has warmly welcomed the government's decision, describing it as a milestone in rationalizing TDR and enhancing the ease of doing business in the real estate sector. According to CREDAI, the newly notified rules provide much-needed clarity and incentives for sustainable high-rise development across Telangana.
N Jaideep Reddy, President of CREDAI Hyderabad, expressed gratitude for the provision allowing 50% TDR submission at the time of permission and the remainder prior to OC, which alleviates the initial capital burden on projects. He stated, "This GO is a testament to the government's commitment to making Telangana a global real estate destination. By integrating TDR into road-widening, master plan modifications, and height relaxations, the state is ensuring a win-win for both urban infrastructure and private development."
Overall, these amendments are poised to stimulate growth in the real estate market, offering a balanced approach to urban development while addressing the practical needs of builders and stakeholders in Telangana.
