Frequently Used Real Estate Terms Explained
August 24th, 2018
Are you often confused with the real estate terminology used by developers and real estate agents? If the answer yes, let us help you understand some of the frequently used terms in the realty space.
- Guideline Value/Circle Rate: It is the minimum rate at which a property can be registered in a particular area. This rate is applicable to all residential and commercial properties and is the value determined by the government for the land in a particular area.
- Carpet Area: It is the net usable floor area and the area covered by internal partition walls in a housing unit, excluding the area covered by external walls, services shafts, balconies or veranda, open terrace and common areas such as play area, lift, corridor, gymnasium and swimming pool among others. It is commonly known as the area on which a carpet can be laid.
- Built-Up Area: It is the overall area of a housing unit, comprising the carpet area and the thickness of the inner walls and outer walls along with the area of the balcony.
- Super Built-up Area/Saleable Area: It is also known as the saleable area and includes the (i) the carpet area of the housing unit, (ii) thickness of the external walls, (iii) balconies, (iv) terraces and a proportionate share of the common areas such as lobby, lift, children play area and gymnasium among others. These common areas are usually distributed among all the housing units uniformly.
- Floor Space Index (FSI)/ Floor Area Ratio (FAR): It is also known as Floor Area Ratio (FAR). FSI is the proportion of the built-up area allowed on a given plot vis-a-vis the overall area of a plot. This number depends on the area, plot size and road width. For instance, if the total constructed area is 10,000 sq. ft. and the total land area 20,000 sq. ft., the FSI will be (10,000/20,000) 0.5.
- Occupancy Certificate (OC): Also known as the Completion Certificate. It confirms/certifies that the construction of the Block/Project conforms to the approved Plans and the local regulations or laws. This certificate is issued by the local municipal corporation/Planning Authority who has sanctioned the plan, to the owner of the project.
- Loading Factor: It is equal to the carpet area plus wall area of a given unit plus common areas (Loading fact. These common areas include staircase, elevators, lobbies, service shafts, common corridors, service rooms, drivers and domestic help common restrooms, security cabin and club house area and any other common facility provided. It could also be calculated using super built area and carpet area. For instance, if the super built-up area of a unit is 1200 sq. ft. and the carpet area is 1000 sq. ft., the loading factor will be (1200-1000) 200 sq. ft. The loading percentage can be calculated by multiplying the loading factor x100 divided by carpet area. Therefore, in this case, the loading percentage is (200×100/1000) 20%
- OSR (Open Space Ratio): OSR or parks and open spaces means a certain percentage of space is to be earmarked for parks as specified by the local approving authorities. This is in most cases 10% of total land available for development, excluding the building foot print.