Key Terms Every Home Buyer Should Know

October 29, 2024

Noida and Greater Noida were once known for affordable and mid-segment properties. Today, they are hotbeds for premium properties as the prices have surged in the past few years. Luxury projects in the Noida extension are rising as many investors are eager to invest in the region. Top builders in Noida are doing their best to match the infrastructure development with some of the best residential and commercial projects. If you are a new investor or home buyer interested in property in upcoming projects in Noida, here are a few key terms you should know.

This blog discusses important real estate terms for your reference.

Carpet Area

Be it commercial property for sale in Greater Noida or new upcoming projects in Noida, the definition of carpet area remains the same. It includes-

1. The complete floor area covered in a carpet was to be laid on it.
2. The thickness of the walls between the rooms.
3. Staircase, if any, only inside the property.

It does NOT include:

1. Area covered by the external walls.
2. Areas under service shafts.
3. External areas like the Balcony, veranda, terrace, and flower beds

Built-up Area

The Built-Up area is the sum of the carpet area and the area covered by the separating walls and the balconies. The built-up area is usually 20% to 30% more than the Carpet area.

An easy formula to calculate the Built-Up Area can be: –

Built-Up Area = Carpet Area + Thickness of the external walls + Balcony area + Exclusive Corridor area

Super Built-Up Area or Super Area

A Super Built-Up or super area is a total saleable area that includes the built-up area and common areas like the staircase, lobby, corridors, lifts, and amenities like gardens and a clubhouse within the confines of the building property.

Loading Factor

The difference between the property’s super built-up and carpet areas is known as the loading factor. To calculate loading factor, we use the formula –

Super built-up area = Carpet area *(1 – Loading factor)

So, if the loading factor is 1.3 then the 0.3 component of the loading factor constitutes the outer walls and amenities of the building.

To make it simpler, it is also expressed as a percentage. If for instance, the loading is said to be 30%, it means the developer has added 30% of the carpet area to the construction.

As per RERA (Real Estate Regulatory Act), the property prices should be based on the carpet area and not on built-up or super-built-up areas. Developers often confuse property buyers with jargon. By understanding the key terms and their usage, investors can be assured of their investments in the upcoming projects in Noida.