Basic real-estate terminologies to know before hunting for a new home

Buying your first home is an important decision in your life. It gives you a feeling of pride, joy and achievement. It starts from finding an apartment or independent house that is suitable for everyone’s needs. The location of the home should be convenient to all family members and the rates for that location should be affordable too.It is a challenging task indeed.Arranging the money required to buy a really comfortable house could be a difficult task. Looking at the dynamic economic environment we live in and the ever-increasingreal estate prices in the metro cities in India, it is always suggested to consult experts or at least read some good articles related to properties and their various features.

Understanding the terminologies

Whether you approach a builder or property broker to enquire about flats in Pune or bungalows in Hyderabad, there are many words or terms used by them during the conversation. You may or may not understand all of what they say.Hence, it is absolutely necessary to understand the meaning of the each of the term commonly used in the real estate business.

Carpet Area:The first and foremost term is the carpet area. It is used to describe the total area of the house contained within the walls. It does not consider the thickness or the area covered by the walls inside the house.

Built-up Area:Most people assume that the terms built-up area and carpet area mean the same and keep on using them interchangeably. But, these two terms are different. Built-up area includes the area covered by walls and also the area covered by balcony or open space within the walls.

Super Built-up Area:Super built-up area includes the built-up area plus the area of lobby, stairs, etc. This area is actually not owned but used by the flat owners. The common areas are divided into the number of flats and then priced accordingly.

FSI (Floor Space Index):FSI is the most commonly used word by any builder or contractor. Many a times, people not related to real estate don’t even know the full form of this word. FSI means Floor Space Index. It is the ratio of gross floor area of all floors to the total area of the empty plot. FSI changes from one area to the other area.More the FSI, more is the super built up area. This is a very important factor to consider while buying a flat as any construction done beyond permitted FSI is considered to be illegal.  A builder or contractor must explain to you the concept of FSI and how his work is well within the permissible FSI limit.

Saleable area:After reading the above terminologies, you must now be wondering about the exact area for which you will pay to the builder. The answer is – ‘super built-up area’, also known as the saleable area.

You must visit the builder or property agent’s office with the knowledge of these basic terms so that nobody can fool or misguide you.