The purpose of the paper is to highlight some of the contradictory features of the "extended" Transfer of Development Rights (TDR) as recently formulated and applied in Milan’s "Piano di Governo del Territorio" approved in 2012. Quite differently from the American experience, because the transfer is allowed across the entire urban fabric, infringing upon the value balance between Sending and Receiving Zones, it may exacerbate the over-densification of central areas, coupled with further abandonment and decay of peripheral areas. In sum, the Milanese TDR appears to give a conspicuous bonus to land rent without a fair compensation in terms of urban quality and liveability.
Keywords: Master planning, planning compensation, transfer of development rights.
Jel Code: R52, R14, Z18