Why Cost per Sq. Ft. Can Be Misleading
A property's quoted price per sq. ft. is meaningful only when you know which area definition is being used and which additional costs are included. Comparing properties on mismatched area bases creates a false sense of value.
Before Comparing Properties Checklist
- ✓ Is the quoted rate based on carpet area or super built-up saleable area?
- ✓ What is the exact carpet area mentioned in the RERA carpet area certificate?
- ✓ What is the loading percentage ((Saleable - Carpet) / Carpet)?
- ✓ Are stamp duty (~5%), registration (1%), and GST (5%) included in the quoted figure?
- ✓ Are parking, clubhouse, maintenance deposits, and legal fees added to the total cost?
Frequently Asked Questions
What is the difference between Basic Price per sq. ft. and Effective Price per sq. ft.?
Basic Price per sq. ft. is quoted property price divided by area. Effective Price per sq. ft. includes all additional acquisition costs (stamp duty, registration, GST, legal fees, builder charges) divided by area.
Why is Carpet-Equivalent Price per sq. ft. higher than Saleable Price per sq. ft.?
Carpet area represents usable net floor space, which is smaller than saleable (super built-up) area due to common area loading. Dividing total cost by a smaller carpet area yields a higher price per sq. ft.
How is loading percentage calculated?
Loading percentage is calculated as ((Saleable Area - Carpet Area) / Carpet Area) * 100.