In Mumbai, for new projectsl builders are loading 65% on the carpet area? Is this legal or justified?

Q: If carpet area is 1000 sft, the buyer is paying for a saleable area of 1650-1700 sft !! Are such high loading factors permitted? Car parks are being sold under other names eg Infra charges etc even though the SC has ruled they have to be on basis of flat area. Please guide.

pratt, Mumbai

7th July 2015

Buying property in Mumbai

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Hi Pratt,
High loading can be justified only if the builder intentionally wastes the FSI on making the look and feel of the project luxurious e.g. very large lift lobbies etc. but however it will always be a waste.

Deepti Baragur, Pune

28th July 2015

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Hi Pratt,
Loading factor varies from place to place and project to project. In residential property it is generally 25-35% of super built-up area.

According to CREDAI, Carpet area of unit is calculation as internal wall to wall measurements of all Rooms, Internal Passage, Toilets, Store Room etc. (without considering plaster thickness, skirting and column offsets) with addition of the internal area of Balconies and area of projection of Cupboards upto lintel level. No architectural features should be taken in Carpet Area Calculation. Terrace provided at same level should be calculated separately.

Anuskha Chandan, Mumbai

8th July 2015

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Hi Anushka, Thank you for your reply... however, I have to disagree with your initial statement... in Mumbai, for new projects, the loading factor EVERYWHERE is between 60%-70% - it does not vary from project to project (A few years ago, before the DRC regulations it used to be a more reasonable 35% or thereabout). However, my question was - is such a high loading factor justified or is this just a question of market dynamics and a function of whatever the builders can get away with, without any legal restrictions?.

pratt, Mumbai

8th July 2015

You are right Pratt. As a user we always calculate the loading on carpet area. But builders fool customers by telling them that they have a loading of 40% when actually it is on the Salable area. But almost all new construction for residential is at that rate. But for stand alone building with nil amenites it is definitely on high side, unless the rate quoted is below prevailing market in that locality.

Rajatrawal, Mumbai

28th July 2015

Hi Pratt,
As per your queries
Saleable area= 1700 sq-ft.
carpet area= 1000 sq-ft.
The formula to be used is given below:
Saleable area=carpet area(1-loading factor)
1700=1000(1-loading factor)
1.7=1-loading factor
Loading factor=0.7 or 70%
However, builders usually calculate the loading area as below
1000=1700(1-loading factor)
.58=1-loading factor
Loading factor=0.42 or 42%
This is not loading factor. It is the loss factor.

However, the first calculation is right and tells us that for every Rs 1 invested we get only Rs 0.58 worth of area.

Rajatrawal, Mumbai

8th July 2015

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Hi Rajatrawal - thank you for your clarification. However, my question remains unanswered - is such a high loading factor (not loss factor) justified, or is it just a question of market dynamics and whatever the builders can get away with - without any legal controls and restrictions?

pratt, Mumbai

8th July 2015

Hi Pratt,
It is a common practice of the builder. The loading factor is included by the builder to cover up the costs of the common areas of apartment complexes from all the consumers as per their unit preferences.

Secondly, Supreme court order in 2010 that flat buyers need not pay extra money to buy parking spaces, both open and closed, from property developers. The promoter has no right to sell any portion of the building which is not a flat. Allot the same on a first come, first served basis without charging any money from him.

Rajatrawal, Mumbai

9th July 2015

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