27 Mars 2017
The state of Government of Karnataka has finally created the development rights policy fixing the way for property development using parcels of notional land that will be available in the form of transferable development right (TDR) certificates. This announcement has created a significant buzz in the Real estate in Bangalore.
The latest policy, coming after a long delay, brings the curtain down on uncertainties on the use of TDR certificates in Bengaluru and other important cities. TDR refers to grant of additionally developed area (notional land) to a landowner in return for the portion of a plot acquired for a public project. The new policy provides for the grant of twice the area of notional land for each and every square metre of land acquired.
The new plan is beneficial to TDR owners as well as TDR users. If the TDR of a bit of notional land moves from a primary area to a non-prime suburb, the area of the notional land rises at the obtaining to the extent of the fall in market value there.
Shantappa Honnur, a ex director of Town Planning, said the policy has addressed the important issue of how to work with old TDR certificates by approaching up with a formulation. The policy also provides for setback relaxation with a view to popularise TDRs. The confusion that been around in the last plan on setbacks had created problems for authorities with even Lokayukta trying out the probe.
As per Credai's Sharma, the new policy might now provide some momentum to the TDR market. "Now that the supply side has bneen created, we have to look at the demand side. The industry will consider forward to develop the TDR market in an appropriate manner. In case there is need to create a significant demand for TDRs, then we will first have to lessen the FAR of 3. 5 available for Bengaluru, and enforce building bylaws strictly.
As property developers would be the main buyers of TDRs from land-losers, the linking of TDR to market value, experts say, will help developer's aggregate TDR accreditation from multiple owners and utilization in a solitary project to the utmost allowable limit. The luxury apartments in bangalore will witness come major changes after this declaration.