What is TDR? Complete Guide for Developers & Landowners
Transferable Development Rights (TDR) is one of the most powerful tools in urban real estate development. Yet, many developers and landowners do not fully understand its potential.
TDR (Transferable Development Rights) is a mechanism that allows landowners to transfer their unused development potential from one location (reserved or restricted land) to another location where development is permitted.
How TDR Works
-
Government acquires land for public purposes such as roads, gardens, and slum redevelopment projects.
-
Instead of cash compensation, the landowner receives a Development Rights Certificate (DRC).
-
The TDR can be utilized on another eligible plot for additional development potential.
-
The TDR can also be sold in the market to developers and investors.
Types of TDR
-
Slum TDR
-
Regular TDR (Amenity / Road TDR)
Benefits of TDR
-
No need to wait for cash compensation.
-
High-value asset creation.
-
Liquidity through market sale.
-
Boosts real estate development.
