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

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
- Zoning
- Air Rights Development
- Inclusionary Zoning
- Urban Planning
- Transferable Development Rights


























September residential sales, not seasonally adjusted; the annual comparison uses CREA’s revised figures. Chart:
Annual changes in the unadjusted national MLS® HPI and average sale price. The average is affected by the mix of transactions. Chart:
Seasonally adjusted residential months of inventory by province. Local property types can differ substantially. Chart:
Ontario and B.C. are the two provinces with forecast annual average-price declines in 2026. Chart:
Annual average transaction prices in Canadian dollars. Forecast values are not December price targets. Chart:
Five-year changes in seasonally adjusted composite MLS® HPI benchmarks, September 2021 to September 2026. Chart: 
