1
                                                Filed Pursuant to Rule 424(b)(7)
                                                Registration No. 333-05565

PRICING SUPPLEMENT NO. 3, dated September 16, 1996 
(To Prospectus dated June 18,1996 
and Prospectus Supplement dated August 19, 1996)

                                  $150,000,000
                    Developers Diversified Realty Corporation
                                Medium-Term Notes
                             Senior Fixed Rate Notes
                     Due 9 Months or More From Date of Issue

Principal Amount:                   $5,000,000
Issue Price:                        100%
Original Issue Date:                September 19, 1996
Maturity Date:                      September 19, 2001
Interest Rate:                      7.42%
Agent's Commission:                 .099%
Agent's Capacity:                   Agent
Net Proceeds to Company:            $4,995,050
Agent:                              Dean Witter Reynolds Inc.
CUSIP:                              25159N AL9

This Pricing Supplement supplements the Prospectus and Prospectus Supplement
with respect to both (1) the initial offering of Medium-Term Notes and (2)
market-making transactions in Medium-Term Notes by Dean Witter Reynolds Inc.