Jun 13, 2023

Understanding Built-up Area In Indian Real Estate

by Godrej Properties Limited



Unraveling the Concept Of Built-up Areas in Indian Real Estate

In Indian real estate, one often encounters terms like built-up area, super built-up area, and carpet area. These terms are crucial in determining property prices but must be clarified for buyers and investors. This article aims to provide a comprehensive analysis of the concept of built-up areas in the Indian real estate sector, shedding light on its significance and implications.

Decoding Built-up Area in Indian Real Estate

1. Defining Built-up Area

Built-up area refers to the total floor area of a property, encompassing all enclosed spaces within its walls. It includes the area covered by the walls and other areas such as balconies, utility rooms, and corridors. It represents the space a buyer would access and utilise within the property.

2. Calculation Methodology For Built-up Area

The calculation of built-up area can vary slightly across different regions in India. However, a commonly accepted approach involves adding the property's carpet area to the walls' thickness. The resulting figure comprises the built-up area. It is essential to note that the thickness of walls can vary, typically ranging from 4 to 6 inches.

3. Significance in Pricing Of Built-up Area

The built-up area holds immense importance in determining the pricing of a property. Real estate developers often base their pricing on the built-up area rather than the carpet area. The rationale is that the built-up area represents the total constructed space, including the common areas and amenities provided to the residents. Therefore, the larger the built-up area, the higher the overall cost of the property.

4. Legal Implications Used For Built-up Area

Understanding the built-up area is also crucial for legal purposes. In many cases, developers must provide accurate information regarding the built-up area in their marketing materials and legal documents. In addition, homebuyers should verify the built-up area mentioned in the sale agreement and ensure it matches the provided space.

Final Thoughts

Understanding built-up areas is crucial for anyone in the Indian real estate market. Buyers must know the difference between carpet and built-up areas to make informed decisions about property purchases. Moreover, with the implementation of RERA, buyers can now have access to accurate information about the carpet area of a property, ensuring greater transparency and fairness in real estate transactions. By understanding these concepts, potential buyers and investors can navigate the Indian real estate market with confidence and clarity.


Frequently asked questions

1. Why is it important to understand the concept of built-up areas?

Ans. Understanding built-up areas is crucial when buying or investing in real estate as it affects the property's pricing, utility, and overall value. It helps buyers determine the actual size and space available within a property, ensuring they make informed decisions.

2. Does the built-up area affect the cost of a property?

Ans. Yes, the built-up area is one factor that influences a property's cost. The larger the built-up area, the higher the price. However, it is essential to consider other factors, such as location, amenities, and demand, in determining the value of a property.

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