Are you thinking of buying a house?
Congratulations! It is not a simple feat to own a house. Buying a property will fill your heart with a sense of accomplishment and joy. This article is intended for you. To help you understand the conversation with the property developers and builders. They will be using the terminologies, common to the real estate sector, which you may not be aware of.
7 Basic Real Estate Terminologies to Know Before Buying a New House in India
We are describing some of the most commonly used terminologies used in the real estate sector. You may understand the meaning of those before commencing the search to buy a new house.
- Rate per Sq Ft – As the term indicates, it is the price for each square feet of the area. The sum of the carpet area and the super built-up area will be calculated and multiplied with the rate per square foot to find out the cost of the property. The Real Estate Regulatory Authority (RERA) and other governmental bodies have certain stipulations for calculating the total square foot area. The builder must pursue the specifications during the subject calculation. If a builder quotes a cost of 1000/ square feet, the total cost of a property 1000 square feet will be Rs1000000 (ten lakh rupees).
- Carpet Area – Carpet area is the realistic space or area that is available to you for use. It will exclude the area for the lobby, staircase, the external and internal thickness of walls etc. Check the carpet area before finalizing the deal, to confirm that the area available for use is according to your plan.
- Built-Up Area – Built-up area is also called Plinth area by some builders. This will include the thickness of walls, space in the balcony and terrace. Normally, the built-up area will be Carpet area + 20%. Therefore, considering the example we have seen earlier, a house of 1000 square feet built-up (plinth) area will have only 800 sq ft carpet area.
- Super Built-Up Area – Super Built-up Area will include common spaces like gym, club, party hall, playstation etc. The super built-up area is considered as the saleable area by most of the real estate developers. When a seller says about the super built-up area, understand that he or she is considering the space of common amenities too. The calculation of super built-up area will depend on the number of apartments on one floor.
- Floor Space Index (FSI)/ Floor Area Ratio (FAR) – The authorities have promulgated certain specifications/ limitations regarding FSI/ FAR. You will have to have knowledge about the concept and discuss with the builder before investing in a particular property. Reputed builders like OMG Builders abide by the regulations and construct according to the rules only. You may reach out to us to know more about the Floor Space Index or Floor Area Ratio. This is basically the ratio between the total built-up area and vacant plot. The authority can reject approval or ask the builder to demolish construction if it is not within the limits.
- Open Space Ratio (OSR) – Open space ratio will define the area available for construction of common amenities like gym, game area, recreation halls, children play area and so on to the area available for building the accommodation. If common amenities are being built at an area of 03 acres in a total of 06-acre land, the OSR is 50%. The term will be used when you discuss buying a house at a new project.
- Loading Factor (LF) – LF is calculated by multiplying a factor with the carpet area, to get the built-up area. This will provide you with the idea about your apartment’s share of common area. A commonly followed loading factor is approximately 30%. Builders may raise the loading factor to gain unjustifiable profit. Understand this concept in-depth to avoid paying a high amount. Consult our professionals to have an idea about this concept and understand it.
It is a great decision to buy a home. However, you must be aware of the perils in the real estate sector before venturing into searching for properties. A property at the prime location, from a reputed builder, will be an asset for you and your future generations. Buy a house in a great deal from us to have a peaceful and serene stay, among exclusive world-class luxuries.