Mandatory TDR usage fuels speculation, builders allege cartelisation.

Telangana’s TDR Policy Triggers Price Spike, Hyderabad Real Estate Sector Raises Alarm.

A recent policy move by the Telangana government mandating the use of Transferable Development Rights (TDR) for certain high-rise constructions has triggered sharp price escalation and unrest in Hyderabad’s real estate sector. Intended to compensate landowners who surrender land for public projects such as road widening and the Musi rejuvenation, TDRs are now being accused of turning into a speculative commodity. Industry sources say TDR prices, earlier trading at 23–25% of value, are now being quoted as high as 70%, with large developers reportedly securing bulk deals at lower rates. According to a January 2026 report, Greater Hyderabad Municipal Corporation had issued TDRs covering over 1,070 acres, with nearly ₹9,000 crore worth still available—raising questions over artificial scarcity. Builders and residents allege hoarding, cartelisation, and benami transactions by influential players, while brokers describe informal networks exploiting access gaps. Though the government maintains the policy aims to improve utilisation and ensure fair compensation, concerns persist over transparency, access for individuals, and unchecked market manipulation.