1500 sq. ft kehkar ek developer deta hae 930 sq. ft carpet: usable area. (1500 sq. ft is doled out to the client by the developer, after quoting 930 sq. ft carpet: usable area.)
Doosra developer deta hai 870 sq. ft area. Aur teesra developer deta hai 825 sq. ft area. (Another developer offers 870 sq. ft area. Yet another developer gives out 825 sq. ft area.)
Kharidaar hairaan pareshaan, na samajh sake AREA KA GYAN aur ulajh kar kar de paison ka nuksaan.(This variation adds to the confusion of the client who remains in a quandary minus any real knowledge of technicalities. Eventually the unfortunate client ends up losing precious money.)
How I wish there was a clear definition of various nomenclatures of areas used, viz Super Built-Up Area (Saleable Area), Built Up Area and also Carpet Area (Useable Area) together with permissible loading.
In simple terms why should NOT the loading on carpet area be strictly defined by regulatory authority, so that all developers have the same area calculation.
TO START WITH LET ME DEFINE ALL THE AREAS THAT WE HEAR ABOUT WHEN WE GO TO BUY REAL ESTATE.
Built up Area is the carpet area, plus the thickness of outer walls and the balcony. Super Built-Up Area is the built-up area, plus proportionate area of common areas such as the lobby, lifts shaft, stairs, etc. Sometimes it may also include the common areas such as swimming pool, garden, clubhouse, etc.
ONE MORE SET OF DEFINITION:
Super built-up area– Carpet area + terrace + balconies + areas occupied by walls + area occupied by common/shared construction (e.g., lift, stairs, clubhouse, etc).
Generally, builders use loading factor on the carpet area to arrive at the super built-up area. The super built-up area is the saleable area.
What should the buyer do?
Simple Steps Home Buyer Should Take to Evaluate the Product & Pricing Before He Decides to Buy:
- Dear Home Buyer first step is to Decide the Accommodation you need – 2 Bed Room, 3 Bed Room and so on…
- Decide the Location – location with established social and physical infrastructure, close to work place, and finally close to friends and family.
- Identify and choose the Developers in the location you short listed with good track record, and study the product – pricing and area charts (especially the loading between carpet area and super built-up area).
- Do some Exercise – make an EXCEL chart using the pricing and loading factor to understand the mathematics of the situation.
(SEE THE ILUSTRATION BELOW)
Builder A
| Rate
(Per Sq. ft) |
Total Area
(In Sq. ft.) |
Total Saleable Area (Sq. Mt.) | Actual Carpet Area (% age) | Actual Carpet Area (In Sq. ft.) | Cost
(In Rupees) |
| 4000 | 1500 | 139.35 | 62% / 86.397 Sq. Mt. | 930 | 60 Lakhs |
Builder B
| Rate
(Per Sq. ft) |
Total Area
(In Sq. ft.) |
Total Saleable Area (Sq.Mt.) | Actual Carpet Area (% age) | Actual Carpet Area (In Sq. ft.) | Cost
(In Rupees) |
| 4000 | 1500 | 139.35 | 55% / 76.6425 Sq. Mtr. | 825 Sq. ft. | 60 Lakhs |
Builder C
| Rate
(Per Sq. ft) |
Total Area
(In Sq. ft.) |
Total Saleable Area (Sq.Mt.) | Actual Carpet Area (% age) | Actual Carpet Area (In Sq. ft.) | Cost
(In Rupees) |
| 4000 | 1500 | 139.35 | 50% / 69.675 Sq. Mtr. | 750 Sq. ft. | 60 Lakhs |
Standardization of areas is a must, so that we have transparency for the buyer.
If you look at the illustration it sure looks scary.
- 750 sq. ft carpet area @ Rs 60 Lacs translates into Rs 8000 / sq. ft cost
- 825 sq. ft carpet area @ Rs 60 Lacs translates into Rs 7272 / sq. ft cost
- 930 sq. ft carpet area @ Rs 60 Lacs translates into Rs 6451 / sq. ft cost
The variation is eye opening indeed. 750 – to 825 to 930 sq. ft of usable area.
We all are not civil engineers or architects, and unfortunately like in other countries where you first build and then sell, in India because of the demand and supply gap, most of the sales start happening before the first spade is put on the ground. Since we are very emotional about buying or I should say owning our HOME, we take the decision without studying the offer in detail.
It may be a good idea to take advise from an architect – engineer – financial consultant, relating to both the developer and the product, so as to take an informed decision.
The authorities have walked a long path in formalising the Real Estate Industry by virtue of implementing RERA – GST and the like, but there is much that remains undone.
The authorities need to create a level playing field for all developers with defined rules. While RERA provides for listing all areas (Carpet-Built Up-Super Built Up), it is mandated that for a defined saleable area (Super Built-Up Area) by any developer, the carpet area provided to the consumer by all developers should be identical.
Most importantly the premium that the developer makes should be on the quality he delivers.
Mr. Sanjeev Kathuria is an entrepreneur and accomplished expert in a variety of areas pertaining to real estate such as land buying, liasoning, marketing, sales, construction and development. His chief interests lie in strategic sales and marketing as well as business development. He has sold inventory worth Rs. 13,000 crores over the last decade. Mr. Sanjeev’s strong value system and his integrity and commitment to his customers has been appreciated by everybody he has worked with. His new initiative of delivering quality content about real estate has been lauded by numerous industrialists and industry leaders.
