Loading Factor in Apartments

Q: Hi, what is loading factor for Apartment? How it is calculated?

Suresh,

11th August 2015

Buying property in Mumbai

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real estate in mumbai

loading factor

loading factor in apartment

how to calculate loading factor

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Replies (4)

Thanks for the detail information Anirudh....
Now i understand the loading factor. It should be calculate on Carpet area not in super built-up area. Because the above example shows that there is a clear difference of almost 13 % between the two. Hence, buyers must be aware of what the builder is using in his calculations for the Loading Percentage. This will help them know the actual space for which they are being charged extra.

Suresh,

11th August 2015

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Now i am getting a bit but still confused how a builder's calculation differ from a common buyer? Can you give example for that to understand it?

Suresh,

11th August 2015

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I understand Suresh....
Let us assume, a builder offers a super built-up area of 1000 sq-ft. and the carpet area is 700 sq-ft. The extra that the builder is charging is equal to 300 sq-ft. which is said to be the loading factor of the unit.
Let's do a forward calculation using the formula which is said to be ideally correct where carpet area is used for calculation: Carpet area x Loading Percentage = Loading Factor x 100
Loading Percentage = (Loading Factor x 100)/ Carpet Area
Where Loading Factor = Super built-up area-Carpet area
Loading Percentage = (300 x 100)/ 700 = 42.85%

Anirudh Patel, Mumbai

11th August 2015

But the formula which is most common in the country, considers the super built-up area as against Carpet Area. And this brings down the Loading Percentage to a large extent which the buyer might feel is beneficial to him.

Super built-up area x Loading Percentage = Loading Factor x 100
Loading Percentage = (Loading Factor x 100)/ Super built-up area
Where Loading Factor = Super built-up area-Carpet area
Loading Percentage = (300 X 100)/ 1000 = 30%

Anirudh Patel, Mumbai

11th August 2015

Good morning Suresh,
Builders/Developers also needs to recover the opportunity cost of land used. For example, in premium projects, the developer provides amenities that are far more superior than the prescribed norms and thus leaves the opportunity of utilizing the available FAR for developing an additional saleable unit. So, the developer passes on the additional financial burden to buyers in the form of both as an increased base price as well as higher loading.

Sishir,

11th August 2015

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Thanks Sishir,
I just want to know that what constitutes the loading factor in apartment projects?

Suresh,

11th August 2015

The loading factor is always calculated as a percentage. This changes across projects and cities. Here are the loading factor in the 4 main cities across the country.

MMR:-50-60%
Delhi/NCR:- 20-40%
Bangalore:- 20-30%
Chennai:-25-30%

Santosh TR,

11th August 2015

Thanks Santosh..........
But most of the builders don't mention the loading factor of the property while talking to a prospective buyer, while it is very important that we should know this term.This is because, if property calculated, the loading factor gives the real value for our investment.

Suresh,

11th August 2015

Hi,
Loading factor in reality creates a relationship between the super built-up area and the carpet area. It is the factor which when added with 1 and then multiplied by the carpet area gives the super built-up area. The correct formula for calculating loading factor is:

Super built-up area = Carpet area (1+ loading factor)

We also understand that the source of Loading for a builder is to recover the cost of additional facilities that he is providing such as lifts, lobby, maintenance room, generator room, parking, and terrace, to name a few.

Santosh TR,

11th August 2015

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