The Telangana government is considering a major revamp of building regulations aimed at easing compliance and reducing costs in the real estate sector. The proposed changes include lowering mandatory mortgage requirements, revising project completion timelines, easing building fee payments, and increasing permissible floor heights, following long-standing representations from builders and developers.
Officials indicated that the existing rules have become outdated and financially burdensome, prompting the government to rework norms as part of new unified building regulations for the state.
Mortgage Requirement Likely to Be Reduced
One of the key proposed changes is a reduction in the mandatory mortgaging of built-up area. The government has, in principle, agreed to cut the mortgage requirement from 10% to 5% of the built-up space, responding to demands from builders’ associations.
The remaining 5% mortgage requirement will be covered through a combination of a 2.5% city-level infrastructure impact fee and a 2.5% security amount under the Non-Agricultural Lands Assessment Act, effectively retaining the overall obligation at 10% while reducing direct mortgaging.
Frequent Delays and Cost Burden Highlighted by Developers
Developers have argued that the mortgage clause, introduced nearly two decades ago, imposes an unnecessary financial burden and increases housing costs. Currently, builders are required to mortgage 10% of their built-up area with the civic body while seeking permissions for buildings above ground plus two floors.
The mortgaged portion is released only after submission of the Occupancy Certificate (OC). Officials noted that if deviations are found and an OC is denied, the mortgaged area is not released.
Revised Project Completion Timelines Proposed
As part of the overhaul, the government is also planning to revise project timelines to better reflect ground realities. Builders have sought longer completion periods, which the government is now considering:
• 3 years for individual residential buildings
• 5 years for non-high-rise residential, commercial projects and villa developments up to 100 units
• 6 years for high-rise apartments, gated communities and villa projects exceeding 100 units
Changes in Building Fee Payments
Developer associations have requested that building fees be allowed in instalments. While the government has not agreed to instalment-based payments, it is considering such requests for projects within the GHMC limits, subject to interest being levied on delayed payments.
Increase in Floor Height Limits
The government is also considering an increase in permissible floor heights by about 10%. Builders have proposed a floor height of 3.3 metres for residential buildings and 4 metres for villas and gated communities.
Additionally, balcony projections in setback areas may be permitted for both residential and commercial projects, offering more design flexibility.
Relief on NOCs and TDR Norms
On the issue of No Objection Certificates (NOCs) for buildings near water bodies, the government has declined to delegate powers to irrigation assistant engineers. However, it clarified that where full tank levels have already been notified by the irrigation and revenue departments, a separate irrigation department NOC will not be required.
Regarding Transferable Development Rights (TDR), builders will be required to submit TDR details only after the civic body generates the fee letter. This follows objections to earlier practices where TDR certificates were demanded at the planning approval stage.
Unified Building Rules in the Works
The proposed changes were discussed in a meeting involving officials from the municipal administration department, HMDA, GHMC, CREDAI representatives, and other real estate bodies. Officials said the state is preparing to formally notify the new unified building rules after examining the demands.
If implemented, the revised norms are expected to significantly reduce procedural delays, ease financial pressure on developers, and improve the pace of real estate development across Telangana.
