Introduction to Built-up Area in India
In the Indian real estate market, the concept of a built-up area plays a crucial role in property valuation and buyer decision-making. Understanding what constitutes the built-up area of a property can significantly impact your purchasing decisions.
What is Built-up Area?
The built-up area of a property includes the carpet area plus the thickness of the outer walls and the area covered by balconies. It is the total area occupied by the property, covering all enclosed spaces.
Components of Built-up Area
- Carpet Area: The actual usable area within the walls where you can lay a carpet. This excludes the thickness of inner walls and pillars.
- Wall Area: This includes the thickness of both the inner and outer walls of the property.
- Balconies and Terraces: Any balconies, terraces, or verandas attached to the property are part of the built-up area.
How is Built-up Area Calculated?
To calculate the built-up area, you add the carpet area, the area covered by the walls (both inner and outer), and the area of balconies. For instance, if a property has a carpet area of 1,000 sq ft, wall area covering 150 sq ft, and a balcony area of 100 sq ft, the built-up area would be 1,250 sq ft.
Importance of Built-up Area in the Indian Market
- Property Pricing: The built-up area is often used by developers to price the property. Since it includes non-usable spaces like walls and balconies, the price per square foot may seem lower, but the actual usable area might be less.
- Loan Eligibility: Banks and financial institutions consider the built-up area while sanctioning home loans. A larger built-up area might increase the property’s value, impacting the loan amount you are eligible for.
- Buyer Awareness: It’s crucial for buyers to understand the difference between carpet area and built-up area to avoid misconceptions about the size and value of the property.
Built-up Area vs. Carpet Area vs. Super Built-up Area
- Carpet Area: The area that you can actually use.
- Built-up Area: Carpet area plus the thickness of walls and balcony space.
- Super Built-up Area: Built-up area plus common areas like lobbies, staircases, elevators, etc.
Why Built-up Area Matters
Understanding the built-up area is essential for making informed real estate decisions. It helps in evaluating the actual space available for use versus what is being advertised or charged.
In the Indian real estate market, being informed about terms like built-up area can help you make better purchasing decisions. Always clarify with your builder or seller about what is included in the built-up area to ensure you’re getting the best value for your money.
