A developer who wants to build more than the base FAR on a Bengaluru plot has two main options: buy Premium FAR from the government, or buy TDR from a certificate holder. Both add floor area, but they differ in cost, availability and process.
The two routes in brief
Premium FAR is additional FAR sold directly by the authority on payment of a fee, in areas where the zoning rules permit it. TDR is additional FAR bought from a landowner who received a Development Rights Certificate for land surrendered to the city.
| Premium FAR | TDR | |
|---|---|---|
| Bought from | The government / planning authority | Landowners holding a DRC, or other certificate holders |
| Price | Fixed by the authority, usually linked to guidance value | Set by the market — depends on supply, demand and paperwork quality |
| Availability | Only in zones and road widths where it is allowed | Depends on certificates available for sale at that time |
| Main risk | Low title risk; cost can be high in prime areas | Title and issue-record risk if not verified |
| Process | Applied for along with plan approval | Purchase, endorsement of transfer, then loading on the plan |
When Premium FAR makes sense
- The plot is in a zone where Premium FAR is allowed and the fee is reasonable.
- You want a single-window process tied to plan approval.
- Verified TDR in the quantity you need is not available in time.
When TDR makes sense
- The market price of verified TDR is lower than the Premium FAR fee for your plot.
- You need flexibility in quantity, or want to buy in stages.
- You want to support land release for city infrastructure as part of your project story.
Using both together
On many projects the best answer is a mix. The rules set an overall ceiling on how much additional FAR a plot can take, and a developer can plan how much of that comes from each route. Working out the combination early — before buying anything — avoids paying for rights that cannot be loaded.
Our view
There is no single right answer for every plot. Compare the landed cost per square foot of each route, factor in the time each will take, and never buy TDR without verifying the certificate first.
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