How do the rates vary as per Villa, Apartment, Plots, etc.?

Q: I see people talking about sq. ft. rates in some localities, but I don't understand what type of properties do those rates stand for? Are they for plots? Or the apartments? Or something else? What is the relation between rates of a plot, apartment, villa, etc.?

10th November 2011

Buying property

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Buying property

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If you the price of the plot then you can know the sqft price of the apartment built on the land. Usually builders keep the sqft price of an apartment by the following formula (Total Apartment Cost = Construction Cost + Cost of the Land). Also, Cost of the Land value / 2 + construction cost + builder's margin for profit = apartment cost. However, there are many factors on which an apartment is rated. It includes amenities provided, reputation of the builder and its number of projects, services present nearby, locality, etc.

If someone says area has price of Rs 4000 per sqft, then he is speaking about the cost of apartment and not the cost of the plot (if it is a developed area with many apartments around for competition).

Suresh Khanna, Mumbai

11th November 2011

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Okay, but my question is how can one guess the sq ft price of an apartment or villa if he know the sqft price of plot. Is there some formula? What all factors does it depend on?

Also, when someone says this area has price of 4000 rs per sqft, is he saying that for plot? or apartment or something else?

11th November 2011

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Hi Mukesh,

The rates per sq ft stands good for all type of immovable properties, be it apartment, villa, plot, agricultural land or commercial plot. Generally area of properties are measured in square feet (sqft) and square yards (sqyd) and 1 sqyd is equal to 9 sqft. Again for apartments and flats, there built up area and carpet area. Area is measured accordingly.

There is one saying that larger the sqft area smaller will the cost and vice versa. However size of plots, apartments and villas in a particular place will always vary. If a particular place has plot price as Rs 7000 per sqft and apartment price as Rs 6200 per sqft and other area has plot price as Rs 2600 per sqft and apartment price as Rs 4000 per sqft, then the place with the highest ratio of apartment price to plot price is the best investment destination for plots. So, area 2 is best for investing in plots.

Suresh Khanna, Mumbai

11th November 2011

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