Loading Factor on Properties
“WHO DECIDES THE LOADING ON THE AREA OF THE FLAT / SHOP”
- Is it the total of the extra common area construction added to each flat/shop equally?
- Is it decided as per the wish of the Builder?
Ideally it should be the total of the extra common area construction, but then do you get that report from the builder? Rarely any builder will provide you that data.
Few years back, the loading was 15-25%, then it became 25-35% and now the standard followed by most in Surat is 40%. But lately it has even come to attention that some projects have a loading of 47% -53%.
We can agree to some extent if the developer has built some extra amenities, or left the passages and corridors bigger or made extra basement parking which wasn’t required by law, and if they calculate such things in super built up.
But is it the way the super built-up calculated. A 50% loading means that 50% of the all the carpet area is made for common usage. But does that always happen? Or is the loading MARKETING GIMMICK?
Here is an Example which you can find in Surat Market
Builder A is selling a flat A of 1000 sq ft super built-up .
Builder B is selling a flat B of 1000 sq ft super built up.
Pricing as per Super Built up
Flat A: 3500 / Sq ft Total Price 35 Lacs
Flat B: 3200 / Sq ft Total Price 32 Lacs
The loading on Flat A = 40%
The loading on Flat B = 47%
Thus the carpet Area that you get is
Flat A: 600 Sq ft
Flat B: 530 Sq ft
Now if you calculate the Price / Carpet area
Flat A: 5833 / Sq ft
Flat B: 6037 / Sq ft
It’s very easy for a common man to get confused and consider that the Flat B is cheaper, but actually he is wrong and making a wrong deal. Surprising we have observed that even regular real estate Investors have made decisions without considering the loading factor. A good property broker will guide users on such un-shown facts of property buying.
Note: The good side of the Surat Market is the builders are clearly informing (If asked) the users about how much is the loading, thus it is then up to the user to check out on their own if that is justified or not.
In case you find difference in loading factor of 2 flats, then you can always check the extra amenities between the 2 projects and you can find on your own is the loading factor is justified or a gimmick.
Please share / like this article if you feel this happens and people of Surat should be aware of this.
Article by www.SuratRealEstate.com Research Team. Phone: 89800-00777