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Your Best Guide to the Basics of Real Estate

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Best Guide to the Basics of Real Estate

Let’s be honest to ourselves, the specific kind of language and phrases used by Realtors and Agents leave us clueless on more occasions than we can admit. When real estate terms like built-up area, carpet area and super built-up area are spoken out loud, it usually passes over our heads, leading us into a state of uncertainty. We can’t even tell that it’s three different ways as to how one can calculate the square footage or area in a residential complex. They probably don’t sound different at all, but there actually is a massive difference between built-up and carpet area!

Being unable to tell the difference grants Developers an opportunity to take advantage of your unawareness. We’d just like to let you know that it isn’t as complex as a math equation. In fact, a little bit of light reading and you’ll turn into a pro. Here are a few basics about Real Estate that you should get yourself acquainted with.

carpet_area

Carpet Area

Carpet Area is the space in a residential complex that can be covered by actual carpet, or it could be better explained as the area of the apartment with which the thickness of the inner walls are excluded. It does not include the areas occupied by common areas such as stairs, lobby, play area, lift, etc. Therefore, carpet area makes up for the area you get to use in a residential apartment. When you are in the middle of your search for a perfect home, make sure you pay attention to the carpet area of the apartment and then base your decision around it, as that particular number will give you an estimate of the actual area you have access to. Focusing on that very number will aid in your understanding as to how you can utilize the space available in the bedroom, kitchen, living room, etc. In this day and age, many builders do not bother mentioning the carpet area in the first place, charging prices based on the super built-up and built-up area. Carpet area consists of 70% of the built-up area.

Built-Up Area

Built-Up Area

Built-up area consists of the space that follows after adding on the carpet and wall area. Here, the wall area does not imply the surface area. Instead, it consists of the thickness of the inner walls of an apartment. The area that makes up the walls comes up to around 20% of the built-up area which in turn alters the perspective. It also consists of other spaces that have been mandated by the concerned authorities, such as flower beds, dry balcony, etc. which add another 10% to the built-up area. Therefore, if a built-up area states that it consists of 12,000 square feet, at least 30% of it is not usable, making only the remaining 840 square feet permissible to use.

Super Built-Up Area

Super Built-Up Area

Super Built-up area is a builder’s BFF! It is the area calculated by adding the built-up area and common area that includes the corridor, lift lobby, lift, etc. In some cases, builders even include amenities such as a pool, garden and clubhouse in the common area. A Developer/Builder charges you on the basis of the super built-up area which is why it is also known as ‘saleable’ area.

Every builder has a best friend, namely the Super Built-up area. This area is calculated by adding together the common area, including the lift, corridor, lobby, etc. with the built-up area. In special cases, builders also include the amenities that are tied to the residential apartment such as the garden, pool and clubhouse into the common area. For this reason, a builder/developer charges each person based on the super built-up area, hence giving it the name of ‘saleable’ area.

Let’s consider an example – Rs. 2,000 is the rate per square foot and the super built-up area comes up to 1,200 square feet. Therefore, the base price will stand up till 24 lakhs.

When there is more than one apartment on a floor, the super built-up area is calculated in a different manner. Let us assume this is the case.

If there happens to be more than one apartment present on a floor, the calculation of the super built-up area is processed in a different method. Let’s just assume that this is the case.

—Apartment 1’s area comes up to 1000 square feet

—Apartment 2’s area comes up to 2000 square feet

— The complete common area would come up to 1500 square feet, for which Apartment 1’s common area share would come up to 500 sq. ft. while Apartment 2’s share would be 1000 sq. ft.

Therefore, Apartment 1’s super built-up area would come up to 1,500 square feet while Apartment 2’s super built-up area would come up to 3,000 square feet. As highlighted in this example, the super built-up area is divided based on the ratio of the apartments’ built-up areas, which in this case would be 1:2.

Seeing as how developers and builders usually base their price their residential apartments based on the super built-up or ‘saleable’ area, not knowing the vital difference between built-up and carpet area along with other terms tends to leave one fumbling around in the dark. In fact, the usable area is actually way lower than that of the super built-up area. There are builders who consider the carpet area while deciding the charge, but very rarely occurs. Almost all the developers decide the base cost based on the super built-up area, i.e. more amenities means more super built-up area.

Admittedly, there are complications when it comes to Real Estate, for which practices and rules cannot be changed. However, you would be capable of making an informed decision once you have been made aware of the various types of estimations of square footage.

Hopefully, this should clear up any confusion that exists for you, therefore, helping you to make easier questions. We’ll always be right here if you have any doubts.

Constellos 

A complex  which consists of best of served residential units mostly suites clubbed with Retail, Fitness, Office, Entertainment zones inside one premise.

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NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

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NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

On Thursday, Andhra Pradesh Chief Minister N. Chandrababu Naidu said with the estimated expense of Rs. 5,556.74 crore, the construction of more than 2,44,164 houses, out of the proposed 3,03,044, has been commenced under the NTR Housing Scheme 2017.

While addressing the second day of the Collectors’ Conference he also said the construction of the remaining houses will begin soon. He mentioned that Prakasam and the Kurnool districts are ahead of the schedule in the urban housing scheme. Also, the works are in full swing in the Nellore and the Guntur districts under the rural housing scheme.

According to Naidu, the government will complete 2.5 lakh houses by January next year and another lot of two lakh houses by June.

By October 2, 2018, the state government intends to finish the construction of all the houses and plans to celebrate with massive house warming ceremony with local public representatives. This will help them set an example for housing schemes in other states.

Also Read: Raunak Group Presents Apna Pehla Ghar Campaign

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A Mumbai Suburbs’ Swift Transformation From Industrial To A Residential Zone: Wadala

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A Mumbai Suburbs’ swift transformation from industrial to a residential zone: Wadala

An industrial zone primarily, Wadala has undergone a drastic transformation in the past decade. Now an upcoming residential area, this Mumbai suburb is one of the seven islands to form the modern Mumbai. It is located on the Harbour line of Mumbai’s railway network.

Due to its proximity to BKC, large scale land development was inevitable, thus fueling the real estate market. Wadala is bordered by Dadar on the West, Matunga on the Northwest and Sewri on the South. Nestled between south Mumbai and the suburbs, Wadala enjoys strong connectivity by road and rail to most parts of Mumbai.

It has a number of flyovers like the Anik Panjrapol Link Road, Elevated road and Santacruz flyover. Thane, CST and Chembur are connected via the Eastern Highway while the Western Highway connects the locality to Bandra and Borivali. Wadala has the biggest bus depot in Mumbai. Furthermore, the multiple infrastructure initiatives like the monorail, Truck Terminal and the expansion of Highway are in various stages of development.

All this has given rise to residential demand and pushed the property value over the last few years. One of the most populated areas in Mumbai, Wadala has a large number of old temples, churches and dargahs, university campuses, schools, reputed hospitals and is also home to a former world’s largest IMAX dome theater. There are many stores, showrooms and malls around Wadala like the R Mall, High Street Phoenix and Palladium Mall.

Ramesh Nair, COO – business and international director, JLL India says, “A decade ago, property prices at Wadala were as low as Rs 2,800 per sq. ft. and it rose to Rs 14,000 a few years ago.”  As the infrastructure plans are on their way, so are the renowned developers like Ajmera, Dosti Group and Lodha Group among others.

Wadala at present offers one of the highest returns on real estate investments in the region. All the above-mentioned developers have their luxury projects in the area.

Ajmera I-Land introduces Aeon, Zeon and Treon towers with 2, 3 and 4 BHK plush homes. Conceptualized by renowned Singapore based Architects Space Matrix, these spaces with top-of-the-line lifestyle amenities exude exemplary class and finesse. The first residential floor begins at 110 feet from the ground level and offers several modern lifestyle amenities like kid’s pool, swimming pool, gymnasium, club house, open space and landscaped gardens, yoga room, kid’s play area and senior citizen corner.

Dosti Ambrosia is a 36-storey tower nestled in the 18 Acre Township of Dosti Acres. The architecture of the project was undertaken by renowned Hafeez Contractor in the 2 and 3 BHK apartments. It offers an exclusive rooftop swimming pool with 40,000 sq. ft. of landscaped gardens. You will find all modern conveniences like Gymnasium, Tennis Court, Indoor Badminton Court, Yoga and Meditation Room, Elderly Corner, Banquet Hall, Indoor Games, Indoor Badminton Court, Guest Rooms, Restaurant, Grand Entrance Lobby, Kids Play Area, 2 Club Houses and an Amphitheatre.

New Cuffe Parade by Lodha Group offers its residents all the comforts of a world-class lifestyle. The 2 and 3 BHK homes are spread in over 23 acres of land with 15 acres of stunning landscape and 75,000 sq. ft. of the club house. It includes 11 swimming pools, an organic farm, cricket pitch and multiple themed gardens. The buildings are designed by the world renowned WOHA in Singapore and the landscape was planned by Sitetectonix in Singapore.

Also Read: Mumbai to get Building Taller than Burj Khalifa, Road Bigger than Marine Drive

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Rajasthan Government May Hike The Affordable Housing Prices

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Rajasthan Government May Hike The Affordable Housing Prices

The prices of homes under the ambitious Mukhyamantri Jan Awas Yojana are expected to be increased by the state government.

According to the sources in the empowered committee meeting to be held on Monday, a proposal to increase the cost of a low-income group (LIG) and economic weaker section (EWS) houses will be proposed. Urban development and housing (UDH) minister Srichand Kriplani will chair the meeting. The LIG and EWS houses, presently are being constructed on government lands by private builders. These homes are sold at a fixed rate of Rs 1,250 per sq feet; out of which 1000 rupees per sq ft is given by Urban Improvement Trust (UIT), development authorities and local bodies to the builders.

According to provision 4(A) and 4(B), the developers are supposed to build EWS and LIG houses on government land. Seventy-five percent of such government land can be used in building EWS and LIG houses, while the remaining 25% can be sold by the developers. However, since the rates provided by the government are less the developers are not showing interest to construct houses under these categories. Sources said, “In Jaipur, not a single developer has shown interest in constructing houses under this model. The JDA has invited expression of interest (EOI) several times.”

The UDH is leaving no stone unturned to attract the builders in order to achieve the target of constructing 10 lakh houses by 2019. The sources mentioned, “As per the new proposal, the department has proposed to provide Rs 1,600 per sq feet rate to the developers. The land rates have increased subsequently over the period of time; this is why increasing rates has become a need of the hour.”

Sources further added, “The developers are constructing G+3 buildings at present. However, it is not cost-effective. It has been proposed to construct G+2 buildings for LIG and EWS category.”

Also Read: The Impact Of Regulations On The Real Estate Market

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