Telangana Government Revamps Building Rules, Boosts Real Estate in Hyderabad

The Telangana government has made significant amendments to the Telangana Building Rules, 2012, streamlining the use of Transferable Development Rights (TDR) and relaxing building parameters. These changes are expected to boost real estate activity in Hyderabad and other urban nodes, while also providing builders with greater flexibility in their projects.

A notable change brought in by the Municipal Administration and Urban Development (MA&UD) department in the GO 95, issued on Saturday, is the redefinition of high-rise buildings. According to the new regulations, a high-rise building is defined as one that is 21 meters or above, excluding non-working components such as chimneys, cooling towers, lift machine rooms, and water tanks. This change comes in response to multiple stakeholder requests for the rationalization of TDR usage and the introduction of more adaptable construction parameters.

The government has also updated regulations for buildings between 18 meters and 21 meters on plots ranging from 750 square meters (sq m) to 2,000 sq m. These buildings can now be constructed only through TDR, provided they meet mandatory parking and other requirements. Additionally, TDR can now be used for setback relaxations. Non-high-rise buildings can obtain setback relaxations via TDR while adhering to road-widening norms. High-rises can get up to a 10% setback relaxation through TDR, but they must maintain a minimum seven-meter setback on all sides.

In situations where master plan roads have been altered or downsized, applicants now have the option to either pay the necessary development or conversion charges or provide equivalent TDR instead of a cash payment. This change offers builders a more financially flexible solution.

Norms have been revised for adding additional floors using TDR in large plots (over 2,000 sq m). Developers can add three additional floors on 40-foot roads, four on 60-foot roads, and five on 80-foot roads, with all permissions subject to fire safety and regulatory checks. For high-rises, buildings between 10 and 20 floors must load 3% TDR on the area above the 10th floor, while those above 20 floors must load 5% beyond the 20th floor. Developers are required to submit 50% of the required TDR with building permission applications and the remaining before the occupancy certificate (OC) is issued.

The Confederation of Real Estate Developers' Associations of India (CREDAI) Hyderabad has welcomed the government's decision, stating that it marks a milestone in rationalizing TDR and enhancing the ease of doing business in the real estate sector. The newly notified rules provide much-needed clarity and incentive for sustainable high-rise development across the state.

CREDAI Hyderabad president N Jaideep Reddy highlighted the benefits of the new regulations, particularly the allowance for 50% of TDR submission at the time of permission and the remaining prior to OC. This eases the initial capital burden on projects. The government's commitment to making Telangana a global real estate destination is evident in the integration of TDR into road-widening, master plan modifications, and height relaxations, ensuring a win-win for both urban infrastructure and private development.