A Review of Amendments to Building Rules – 2012

Hyderabad is now the attracting the attention of reputed builders and Multinational Construction firms for its attractive real estate pricing terms. In addition, the relaxation of building rules by the Telangana Government under a series of amendments to the Building Rules – 2012 is helping in accelerating the infrastructural growth along with the improvement in housing quality in Hyderabad. Previously, some of the building norms were creating barriers in the growth of housing segment in urban areas of the Telangana State.

The Telangana government has recently issued 21 amendments to the Building Rules-2012 that is termed as a bold measure by real estate developers and builders. According to them, these amendments would help in developing quality housing in central areas of the city and in decongesting Hyderabad. The government has reduced the impact fee and the time required for issuing Occupancy Certificate. As per rules, the Occupancy Certificate will be given within 15 days and penalty of Rs.500 will be levied on the concerned staff for every day of delay.

The other major Amendments of the Building Rules – 2012 include-

  • Hyderabad Municipal Development Authority (HMDA) has reduced the city level infrastructure impact fee to two slabs instead of four slabs to encourage the culture of high-rise buildings. The fees for those residential buildings having less than 17 floors ranges from Rs.175-500 per sq m of build up area and for those having more than 17 floors, the fees is in the range of Rs.350-750 per sq m of build up area.
  • Penalties would be imposed if the stilt floors were not exclusively utilized for parking purposes.
  • There is a 50% reduction in the special impact fee charged in the ORR (Outer Ring Road) growth corridor.
  • The height restrictions around the plots located in the vicinity of KBR park has been lifted (subject to confirming to abutting road width requirement and handling over the required land for road widening/SRDP project of GHMC)
  • The builders are now required to pay an Environment Impact Fee @ Rs.3/- per square feet for buildings above 10,000 Square feet of build up area according to the plan approved by various governmental authorities. In addition, the quarry owners who supply the building materials are required to pay Normal Seigniorage Fee at source.

These amendments to the Building Rules-2012 by the government is being hailed by real estate developers and builders as a major boost for real estate sector of Hyderabad that required major impetus after the formation of Telangana State. These rules will further drive the housing sector that has already saw a 67% increase in residential units sales during the fourth quarter of 2014 and 2015 compared to the same period during the previous year.

The recent amendments to Building Rules-2012 will be applicable only to new projects. In addition, the Telangana Government is going to put in place the fast track online approval system that would hasten the process of housing construction immediately and in getting approvals from concerned government departments.



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