Tuesday, 22 November 2016

Mumbai’s new TDR policy : What is?

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Mumbai has a new Transfer of Development Rights (TDR) policy that is linked to the width of the road beside the project’s site. As per the new policy, projects on roads that are less than nine metres, will be granted no TDR benefit, while projects on roads over 30 metres wide, will get FSI of 2.5. New TDR policy: How it affects Mumbai’s real estate market The modified policy allows buying/selling of TDR across the city. Earlier, the TDR could only be sold to developments north of where it was originally generated. 

 

It will also allow developers to load additional FSI to developments, in areas where the demand is high. Furthermore, a developer can generate cash flows, by transferring the development rights to a potentially larger market. “As it will take time for additional TDR to be generated from this policy, it may lead to a short-term increase in the prices of TDR that is already available for purchase. 

 

The purpose of TDR is to provide a certain amount of additional built-up area, in return for the area surrendered by the land owner. Developers, hence, are disappointed with the lack of additional construction benefits, for projects located near roads with a width of less than nine metres. This new policy will only benefit big developers, who are building projects along wider roads, they opine.

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