Density Transfer

Density transfer allows unused development rights to be shifted between properties, balancing growth with preservation.

Density Transfer

September 30, 2025


What is Density Transfer?

Density transfer, also called air lot transfer, is a planning tool that allows unused development rights from one property to be transferred to another. This enables higher-density development in designated areas while preserving other lands.

Why Density Transfer Matters in Real Estate

Density transfers matter in real estate because they balance growth with heritage or environmental protection. They create marketable value for unused density while supporting urban planning goals.

Example of Density Transfer in Action

A heritage building in Toronto cannot be redeveloped to full zoning potential. Its unused density rights are sold to a nearby developer, who adds more floors to a new tower.

Key Takeaways

  • Transfers unused development rights to another site.
  • Encourages density where it is most appropriate.
  • Preserves heritage or environmentally sensitive sites.
  • Creates market value for unused density.
  • Supports municipal planning and growth strategies.

Related Terms

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

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