Financial District

Jan 24, 2026

rohit_kum7view-icon
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Why is no one talking about TDR when it is going to result in a drastic price increase in Hyderabad real estate?

With so many highrise projects in areas like Nanakramguda, Kokapet, and Neopolis, this policy shift will make the the flat cost increase by lacs overnight. Yet I have not found any significant discussion on this other than news articles which also are focused on zones near waterbodies only. Why? Am I calculating something wrong?


Let me explain what TDR means to those who have not heard about it. Transferable Development Rights is a certificate used by governments to acquire land for public infrastructure like road widening, metro expansions, or lake buffer zones without immediate cash payouts. When the government takes private land, the owner receives TDR certificates instead.


So what happened is till now their was no rule for mandatory trd inclusion for highrises,

but under the new 2025-26 rules, any project exceeding 10 floors must buy TDR equivalent to 10% of the built-up area above the 10th floor.

This applies to upcoming developments or those without final RERA approval. Crucially, even previously announced projects trigger TDR if they add floors, revise plans, or extend structures, a common sales tactic.


Areas near water bodies face premium rates, sometimes 20-30% higher, due to environmental norms. The taller the building, the more TDR required, turning height into a costly luxury.


Now, the basic maths that should alarm every buyer. Industry estimates from real estate analysts predict TDR loading at Rs 300-500 per square foot for high-rises.


Let's break it down with a simple example: Suppose you're planning on buying a 1,500 sq ft 2BHK in a 15-floor tower in West Hyderabad, base price Rs 1.2 crore (Rs 8,000/sq ft). The extra 5 floors require TDR for roughly 10% of 7,500 sq ft (half the tower's upper area, simplified).

At Rs 400/sq ft TDR cost(taking rough data for this for nanakramguda), that's an additional Rs 3 lakh for the project. Builders pass this on fully your per sq ft jumps to Rs 8,400, adding Rs 6 lakh to your flat (1,500 x Rs 400). Now consider 15 to 25 lac extra built up area

Easily Rs 25-30 lakh extra. Multiply across 1000 units: Rs 100 crore project-wide hike, all from buyers.

This isn't theoretical. Oversupply of forced high-rises might increase resales as well.


Do you guys think this way as well or am I over-reacting?


For external research check this article by Deccan Chronicles https://www.deccanchronicle.com/southern-states/telangana/high-rise-builders-must-buy-10-tdr-for-10-floor-projects-1931023

11 Comments

rohit_kum7

This Telangana Today article explains exactly what I thought would happen would happen. TDR has already become a black market in Hyderabad. They are clearly saying some influential people have hoarded crores worth of TDR and are creating artificial scarcity. Premium has gone from ~20% earlier to almost 55–60% now. This is huge and directly hits project viability.

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satishhyd

@rohit_kum7 If this is the case, then scarcity is not natural, it’s manufactured. That means future high-rise projects will definitely start with a much higher cost base. Builders will not absorb this, they’ll just push it to buyers.


mangoman

@rohit_kum7 And on top of that, GHMC has stopped issuing new TDR and even pending applications are frozen. So supply is completely choked. Whoever already holds big stock is now controlling the market.

rohit_kum7

This is exactly how cartels form. Small and mid-size builders are already in trouble. Only big builders with deep pockets or political access will survive in this system.

satishhyd

Great! So now Instead of reducing FSI, government is doing what they can do to loot more

Sandesh

@satishhyd Reducing FSI would have an even bigger impact because instead of needing more TDR, developers would then need more land. Land is far more expensive than TDR.

gopalsai

Any reason why it’s so low in Kollur and so high in Nanakramguda? Also, any idea at what rate TDR sells relative to the SRO value?

satishhyd

@gopalsai Maybe land value is cheaper in Kollur than FD. TDR value not pegged to SRO value. It relates to land area surrender.

mangoman

As someone who works in FD, traffic's hell already. TDR forcing shorter towers? Music to my ears, even if my resale dips a little.

satishhyd

@mangoman Haha, true ORR commute 1hr+ daily. Shorter buildings mean less concrete jungle, worth the premium long-run.

shaurya10

@mangoman@satishhyd Guys, real talk I'm a mid-level IT earner saving for Kokapet 2BHK. With TDR adding Rs6L, does EMI jump from 75k to 85k/month? How long to save extra now?

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