Godrej Properties has acquired Transfer of Development Rights (TDR) certificates worth INR 50 crore for their upcoming project in Sector 43, Gurgaon. This innovative move, commonly used in Mumbai, allows Godrej to add 300,000 sq ft of built-up space, significantly increasing the project's revenue potential to INR 900 crore. TDR certificates, issued as compensation to landowners for public development, provide additional building rights that can be sold to developers. This acquisition highlights Godrej Properties' commitment to the Gurgaon market, which saw a 473% sales increase in FY24, and sets a precedent for future developments in the area.
Godrej Properties has made a unique land acquisition in Gurgaon. The developer recently acquired Transfer of Development Rights (TDR) certificates worth INR 50 crore for their upcoming project in Sector 43. This innovative approach, while common in Mumbai, marks a first-mover advantage for Godrej Properties in the Gurgaon market.
TDR certificates are a game-changer for both landowners and developers. These certificates are issued by the Haryana government as compensation to landowners whose land is acquired for public development projects like roads or bridges. Instead of receiving just monetary compensation, landowners get TDR certificates that represent additional building rights. These certificates can then be sold to developers working on projects in designated zones.
For developers like Godrej Properties, acquiring TDINR presents a strategic opportunity. In this case, the purchased certificates, with a floor area ratio (FAR) of 2 and a total area of approximately 1 million sq ft, allow Godrej Properties to add a significant 300,000 sq ft of built-up space to their Sector 43 project. This translates to a major boost in revenue potential, estimated at a staggering INR 900 crore!
This strategic move underscores Godrej Properties' commitment to the booming Gurgaon market. The company has witnessed a phenomenal 473% increase in sales in Gurugram for FY24 compared to the previous year. They are not stopping there - a strong pipeline of projects is planned for FY25, including new developments in Sectors 103, 43, and 54.
Interestingly, in July 2023, Godrej Properties emerged as the winning bidder for two prime plots in the coveted Golf Course Road micro-market, one of which is located in Sector 43, where they are now utilizing TDINR for their project. These projects, spread over 2.76 acres and 5.15 acres, hold a combined estimated revenue potential of a whopping INR 3,100 crore.
Godrej Properties' innovative use of TDINR has the potential to significantly impact the Gurgaon real estate market. This approach offers developers a cost-effective way to increase project sizes and potentially improve their returns. As TDINR becomes more widely adopted, it could lead to a more efficient use of land resources in Gurgaon and surrounding areas.
The main questions are - Will other developers follow Godrej Properties' lead and start acquiring TDINR in Gurgaon? How will the wider adoption of TDINR affect land prices in Gurgaon? Will the Haryana government introduce any new policies or regulations related to TDINR?
Godrej Properties' landmark acquisition marks a turning point in Gurgaon's development strategy. The use of TDINR promises to unlock new possibilities for developers and potentially reshape the city's skyline in the coming years.
Advertisement
Facebook
Whatsapp
