Developers in Gurgaon are taking advantage of the policy of purchasing Transfer of Development Rights (TDR) certificates and expanding the existing commercial or residential building in the city.
Developers like AIPL, Landmark, Godrej have taken the benefit to increase the saleable area of the project.
As per the policy of Haryana government, landowners whose land is acquired for development projects can receive TDR certificates from the government instead of monetary compensation.
These certificates can later be sold to developers at market rates.
“The Transfer of Development Rights (TDR) policy will certainly offer benefits to developers as well landowners in Gurgaon. While TDR enables landowners with flexibility to transfer development rights of their land to areas with greater potential, developers can leverage TDR to maximize the potential of their properties or projects,” said Anshuman Magazine,chairman and CEO (India, South-East Asia, Middle East & Africa), CBRE.
Godrej Properties recently purchased TDR certificates from an individual for approximately Rs 50 crore for their Sector 43 project in Gurgaon, a practice common in Mumbai but unique in the NCR region.
This acquisition will help the company construct an additional 300,000 sq ft of area, with a total revenue potential of Rs 900 crore.
“This policy not only ensures efficient land use but also gives landowners the flexibility to trade the TDR certificates at market rates. It also promotes a balanced approach of urban development thus creating a robust foundation for sustainable developments. As Gurgaon continues to evolve as a major urban hub, the TDR mechanism is proving to be a critical tool in driving scalable and sustainable development,” Magazine said.
Realty developer AIPL, which plans to take the rental portfolio to nearly 5 million sq ft with multiple retail and office complexes under construction, is expanding majorly because of TDR certificates.
It is almost doubling the capacity of some of its existing buildings by purchasing TDR.
“Some local brokers have even started purchasing TDR from farmers and later selling it to builders to earn good profit. It enhances the valuation of the building by 30-40%,” said an industry official.
Another Gurugram-based real estate developer Landmark Group is planning to build the tallest office tower of Gurgaon with the help of TDR purchase.
The company’s upcoming projects are located in Dwarka Expressway, New Gurgaon and Golf Course Road extension.
Source : ET Realty
