When it comes to real estate, understanding the terminology associated with property dimensions is crucial. One such term that often perplexes home buyers is "built-up area. Read more about the built-up area, its importance, significance, calculation, and more.
What is a built-up area
Built-up area refers to the total area covered by a structure, including all walls and other structural elements. It encompasses not only the carpet area (actual usable area) but also the areas covered by walls, columns, balconies, and other structural components. In simple terms, it represents the entire space enclosed by the walls of a building.
Components of a built-up area
1. Carpet area:
- The actual usable area inside the walls, excluding balconies and walls.
- Example: If a room measures 10 feet by 15 feet, the carpet area is 150 square feet.
2. Wall area:
- The space covered by the walls of the building.
- Example: If the perimeter of a room is 50 feet, and the height of the walls is 10 feet, the wall area is 500 square feet.
3. Balconies and terraces:
- The area covered by open spaces attached to the main structure.
- Example: If a balcony measures 5 feet by 8 feet, the balcony area is 40 square feet.
4. Common areas:
- Spaces such as corridors, staircases, and lobbies shared by multiple units.
- Example: If a corridor has an area of 100 square feet, it contributes to the built-up area.
Calculating built-up area
The formula to calculate built-up area is as follows:
Built-up area = Carpet area + wall area + balcony and terrace area + common area
Example of built-up area calculation
Suppose a flat has a carpet area of 800 square feet, wall area of 200 square feet, balcony area of 50 square feet, and common area of 100 square feet.
Built-up area = 800 sq. ft. (Carpet) + 200 sq. ft. (Walls) + 50 sq. ft. (Balcony) + 100 sq. ft. (Common) = 1150 sq. ft.
Built-up area importance while availing home loan
The calculation of built-up area holds paramount importance in various aspects of real estate, construction, and urban planning. Here are some key reasons highlighting the significance of accurately calculating built-up area, including its impact on property valuation, adherence to zoning regulations, determination of home loan eligibility, and assessment of tax liabilities.
1. Pricing and valuation:
- Fair pricing: Builders and developers often determine property prices based on the built-up area. Knowing the accurate built-up area ensures that home buyers are charged fairly for the space they are acquiring.
- Property valuation: Appraisers and financial institutions use the built-up areas as a crucial factor in property valuation, influencing decisions related to loans and mortgages.
2. Regulatory compliance:
- Legal requirements: Municipal authorities and local building codes often have regulations and norms that consider the built-up area for various purposes, including property taxes, occupancy limits, and compliance with zoning laws. Accurate calculations are essential to meet these legal requirements.
3. Tax assessment:
Property tax: Property taxes are frequently assessed based on the built-up area. Homeowners and property owners need to have precise information about the built-up area to ensure they are correctly assessed and billed for property taxes.
4. Resource planning:
- Material estimation: For construction projects, builders and contractors need accurate built-up area calculations to estimate the quantity of construction materials required, helping in effective resource planning and cost control.
- Energy consumption: Understanding the built-up area aids in planning for energy-efficient measures. It helps in determining the load on heating, ventilation, and air conditioning (HVAC) systems, contributing to sustainable building practices.
5. Space optimisation:
Interior design: Home buyers and tenants benefit from knowing the built-up area to plan their interior spaces effectively. It allows for better utilisation of available space, ensuring a comfortable and functional living or working environment.
6. Investment decisions:
Return on Investment (ROI): Investors use built-up area calculations to evaluate the potential return on investment. Understanding the distribution of space and the overall built-up area helps investors make informed decisions about the profitability of a property.
7. Property comparison:
Apples-to-apples comparison: When comparing different properties, built-up area serves as a common metric for assessing the value proposition. Buyers and investors can make more informed choices by comparing similar properties based on their built-up area.
8. Urban planning:
City development: Urban planners use built-up area data to assess the density of developments and plan infrastructure such as roads, utilities, and public spaces. It plays a crucial role in shaping the sustainable growth of cities and towns.
Significance of built-up area
- Pricing: Builders often price properties based on the built-up area, affecting the overall cost.
- Regulatory compliance: Many municipal regulations and property tax assessments consider built-up area.
- Space planning: Home buyers can plan their interior spaces more effectively by understanding the distribution of built-up area.
- Investment decisions: Investors can evaluate the value of a property based on its built-up area and potential for future development.
In conclusion, a clear understanding of built-up areas is essential for anyone involved in real estate transactions in India. By grasping the components and calculation methods, individuals can make informed decisions when buying or investing in properties. Whether you are a home buyer, real estate developer, or urban planner, this comprehensive guide serves as a valuable resource for navigating the complexities of built-up areas in the Indian context and understanding more about real estate.
