What is TDR in Real Estate?

Hi,

Do you want to know what is TDR in real estate? Let  me assist you with this. TDR is a voluntary, incentive-based scheme that permits landowners to sell development rights from their land to a developer or other interested party, who can then use the rights to boost development density at another approved place.

A Transfer of Development Rights (TDR) programme safeguards land resources while also delivering additional income to both the landowner and the development rights holder.

• Protection of farmland

TDR initiatives is a technique to conserve large swaths of productive agriculture indefinitely. Farmers receive compensation in exchange for their development rights from developers. Farmers are free to spend the money as they want (e.g., to pay down debt, build a retirement account, or cover operating costs). The farmer retains ownership of the land and the right to farm it.

• Protection of Natural Resources

A TDR program can provide a source of private funds for the purchase of development rights on special natural areas, vital habitats, and resource-protecting regions such as groundwater recharge sites.

• New Urban Development

In rapidly urbanising cities, a TDR can help steer housing to desired sites. Receiving districts can be found in areas where urban growth or increased densities are sought, as well as areas with urban services.

To decipher TDR meaning in real estate, you need to know that TDR entails the owner of the land making available a specified amount of additional built-up area in lieu of the area abandoned or surrendered so that he can utilise the extra built-up area himself or sell it to someone else who needs it for a fee.

TDR is an important raw material in the real estate sector since it permits developers to construct over and beyond the permitted Floor Space Index (FSI) under the standards in place at the time. TDR is becoming more important as a result of increasing urbanisation and a lack of available space, particularly in city suburbs. Hence, I conclude my answer about what is TDR in real estate?