When constructing a new house or buying a property, you may come across the term "plinth area." So, what is the plinth area? Simply put, the plinth area is the total area that is covered by the external walls of a building, including the internal walls, staircases, and other structures within the house. It plays a significant role in determining various aspects of property construction and valuation. In the context of real estate, understanding the plinth area meaning is essential for buyers, builders, and investors alike. This knowledge is particularly useful when applying for a
Loan Against Property from Bajaj Finance.
Importance of plinth area in real estate
The plinth area is crucial in real estate transactions and property valuation. It helps in determining the building’s construction cost and overall market value. The higher the plinth area, the higher the price of the property, as it covers the space occupied by a building's foundation. The plinth area also directly impacts the property tax calculations, making it a key component for both homeowners and developers. It ensures accurate assessment, which can affect insurance premiums and government duties. Understanding the plinth area helps in better negotiation during property deals and enables better planning for construction and design.
How to calculate plinth area?
Calculating the plinth area involves a few straightforward steps:
- Measure the outer dimensions: Measure the length and width of the building's outer walls.
- Include walls and columns: Include the thickness of walls and columns within the dimensions.
- Account for staircases and balconies: Add the area covered by internal staircases and any balconies that are not open to the sky.
- Exclusions: Do not include open spaces like gardens or courtyards.
- Sum up the areas: Add up all the covered areas to get the total plinth area.
Inclusions and exclusions in plinth area calculation
| Inclusions | Exclusions |
| Internal and external walls | Open balconies, verandas not covered by a roof |
| Built-up areas such as staircases, lift shafts, and ducts | Open courtyards and terraces |
| Columns, pilasters, and fireplaces inside the building | External staircases and ramps |
| Covered balconies, porches, and service shafts | Open parking spaces and garden areas |
Difference between plinth area, carpet area, and built-up area
| Aspect | Plinth Area | Carpet Area | Built-Up Area |
| Definition | Total covered area including walls and columns | Usable area within the walls | Plinth area plus balconies and other utility areas |
| Includes | External and internal walls, staircases, balconies | Only the area available for actual use | Carpet area + wall thickness + utility areas |
| Excludes | Open spaces, gardens | Walls, utility spaces | Open areas, terraces, and gardens |
Impact of plinth area on construction costs
The plinth area directly influences the cost of constructing a building. The more the plinth area, the more material and labour are required, thus increasing the cost. A larger plinth area can also mean higher property taxes and insurance premiums, as these are calculated based on the built-up area. For homeowners looking to manage construction costs effectively, understanding plinth area calculations is essential.
Plinth area vs. Floor area vs. Covered area
| Aspect | Plinth area | Floor area | Covered area |
| Definition | Area covered by the building, including walls | Usable area within a specific floor | Area covered by the roof of the building |
| Includes | External and internal walls, columns | All rooms, excluding walls | Walls, balconies, staircases |
| Excludes | Open spaces, gardens | Staircases, balconies | Open terraces, gardens |
Common mistakes in plinth area calculation
- Including open spaces: People often mistakenly include open balconies and terraces.
- Excluding wall thickness: Neglecting the thickness of walls can lead to incorrect calculations.
- Ignoring staircases and utility areas: Not adding these areas may result in a lower plinth area.
- Incorrect measurement units: Always measure in the same unit to avoid discrepancies.
Conclusion
Understanding the plinth area is vital for anyone involved in real estate, whether they are a buyer, builder, or investor. It affects not only the construction costs but also the valuation and insurance premiums of a property. If you are planning to construct a new house or buy a property, make sure you understand the intricacies of plinth area calculations. For those looking to finance their property investments, Bajaj Finserv Loan Against Property can provide the necessary support.
