Decoding Real Estate Jargon For The Homebuyer

• Consider the following scenario. You’ve gone to the tailor for a new shirt. You’re familiar with the standard terms; length, shoulder width, hemline, neckline, cut, fit, etc. When suddenly you’re faced with a slew of words and phrases you aren’t too familiar with- ‘the bias’, grain, anchoring stitch, basting… And yet somehow these terms are important enough for you to pay attention to because they evidently add value to the garment, and having a grasp on them affords you the ability to ensure the quality of the shirt you get in the end.

It’s much the same with all industries, and under the umbrella of ‘all industries’ is the Real Estate Industry.

Once upon a time, developers and builders used terminology that served to confuse the buyer more than reassure. Not anymore, because today, clarifications are a simple internet search away! Today, reputed developers in Mumbai find their clients’ knowledge of industry terms to be more of a boon, allowing for a clear and balanced sale for both parties.

So we’ve shortlisted 6 Real Estate terms you should know to make your homebuying experience as effortless and clear as possible.

• RERA’: The Real Estate Regulation Act protects the interests of the home buyer against any malpractices of unfair builders. RERA Registered Projects are a sign of assurance that all the required documents have been submitted and validated by the RERA and the project will be developed in compliance with the RERA Guidelines.

1. OC’: Occupancy Certificate is issued when the local authorities certify that the building in question is suitable for habitation and the project has been completed with provisions for civic infrastructure. It is a key document for the homebuyer, without which the building cannot be occupied.
2. Carpet Area: The Carpet Area is the usable floor area of the apartment. For example- if you invest in a spacious apartment in Thane, the Carpet Area considers the floor area within the 4 walls of the house that can be used, i.e., literally be carpeted. The CA however, does include the area covered by the internal walls within the apartment.

4. ‘FSI’: Floor Space Index is the maximum floor area that can rest on a piece of land. It considers the floor area available to build but also impacts the height of the building as it is a complete calculation of the maximum area buildable on the one piece of land, i.e., it takes into consideration the levels of floor area too. The FSI varies from area to area, so a property in Dahisar may not be the same as the likes of a property in Thane.

5. Built Up Area: If Carpet Area is your usable area, Built Up Area is the total area that comprises a housing unit- that includes thickness of inner and outer walls, columns, and ducts. It is the overall area occupied by a single unit.

6. Super Built Up Area: Super Built Up Area is also referred to as Saleable Area, which refers to an even more macro view of area. This calculates the area occupied by the lobbies, staircases, shafts, common areas, and amenities. The Super Built Up Area will vary with each project as you consider the kind of common areas on offer. Luxurious flats in Goregaon and Malad will often have a single tower but carefully curated amenities and larger common areas, resulting in a higher Saleable Area in comparison but due to a grander tower. In simple terms, more bang for your buck.

So, the next time you’re out looking for a home to buy, go in better informed.

We are a renowned real estate developer with 50 years legacy, developing apartments and villas across Mumbai, Thane, and Goa