Archive · 28 Jan 2026
Telangana's TDR Policy to Raise Hyderabad Home Prices
The Telangana government has a new rule for builders in Hyderabad.
If they want to build a residential building with more than 10 floors, they have to buy something called Transferable Development Rights (TDR).
This TDR is like a special permission that costs money.
Builders will have to pay more for this permission, and they might pass this extra cost to people who want to buy homes.
This will likely make home prices go up, especially in areas like West Hyderabad where many tall buildings are being built.
Right now, West Hyderabad is a good place to invest in real estate because many big companies are setting up offices there, and rents are going up.
So, if you're thinking about buying a home, it might be better to do it now before prices go up even more.
Telangana's new policy requires builders to buy TDR for residential projects above 10 floors
TDR applies to 10% of the built-up area above the 10th floor
West Hyderabad, especially the Financial District, will be most affected due to high-rise density
Estimated price impact ranges from Rs. 35-420 per sq. ft. across different micro-markets
Builders are likely to pass on the additional cost to buyers, increasing home prices
- Who
- Telangana government and Hyderabad homebuyers
- What
- New TDR policy for high-rise residential projects
- When
- Recently announced, effective immediately
- Where
- Hyderabad, Telangana, India
- Why
- To regulate urban growth and compensate landowners for acquired land
- Policy
- Builders must buy TDR for residential projects above 10 floors
- Impact
- Additional cost for builders, likely passed to buyers
- Areas Affected
- West Hyderabad, especially Financial District
- Estimated Price Impact
- Rs. 35-420 per sq. ft. across micro-markets
- Current Rental Yields
- 4-5% in Financial District, with 3BHK rents at Rs. 80-85K/month
- Future Rental Growth
- Projected to reach Rs. 1.5-2 lakh/month in 5 years
- Job Opportunities
- Up to 1 lakh expected in next few years in Financial District
- TDR Calculation
- 10% of built-up area above 10th floor