Hyderabad real estate is getting harder to justify

The Hyderabad market is getting a bit too messy now honestly. Every few weeks there is some new reason for prices to go up. One time construction cost, then demand, then infra story, now this TDR issue is also getting added.

I do feel this TDR thing may affect some new high-rise projects, especially the west side, but not like that is the only problem. Already prices are feeling too stretched in many areas. Traffic is worse, some roads are still unfinished, the water side also people keep mentioning issues in a few stretches, but launch prices are still going up like everything is perfect.

At the same time buyers are also still entering. Maybe because of FOMO, maybe because everyone thinks Hyderabad will keep moving only one side. Not sure. I’m not saying TDR is nothing, but feels like one more thing in an already overheated market.

Curious how others are seeing it. Is this actually a serious shift or just another temporary reason builders will use while pricing aggressively?

sridhar

Sebastian52

Can someone explain briefly what this TDR issue is?

Verticalassets

@Sebastian52 Above 10 floors, builder must buy TDR = 10% of area from 11th floor onwards (as per HMDA rules)

For a 30-floor building (10,000 SFT each), TDR is required only from 11th floor onwards.

So, for 20 floors (2 lakh SFT), builder must buy 10% TDR = 20,000 SFT

This will impact the construction cost

Piyali

I don't completely agree with you because if there was any FSI regulation, in my opinion price per sft would increase

No, 45-50 floor building will end up increasing the prices of those given 40 floors