Navigating the real estate market in Mumbai can be complex, especially with the unique terminology used in the industry. Here's a detailed guide to some common real estate terms specific to Mumbai, along with examples to help you understand their practical applications.
Carpet Area
Definition: The actual usable floor area within an apartment, excluding the thickness of the inner walls.
Example: If you buy a 2 BHK flat in Bandra with a carpet area of 700 sq ft, this means you have 700 sq ft of usable space for living purposes. This area does not include the walls or balcony.
Built-up Area
Definition: Carpet area plus the thickness of inner walls, balconies, and other usable areas.
Example: The same 2 BHK flat might have a built-up area of 850 sq ft, including the walls and balconies.
Super Built-up Area
Definition: Built-up area plus a proportionate share of common areas like lobbies, staircases, and amenities.
Example: If the super built-up area of your flat is 1000 sq ft, it includes your built-up area plus a share of common areas.
FSI (Floor Space Index)
Definition: The ratio of the total floor area of a building to the size of the plot it is built on.
Example: If the FSI is 1.5 and the plot size is 1000 sq ft, the total permissible floor area of the building would be 1500 sq ft.
Types of FSI in Mumbai
1. Basic FSI: The standard FSI granted based on location and zoning regulations. For example, a residential area might have a basic FSI of 1.33.
2. Premium FSI: Additional FSI that can be purchased from municipal authorities. For instance, in Bandra, you might increase the FSI to 2.0 by paying a premium.
3. FSI for Redevelopment Projects: Enhanced FSI for redeveloping old buildings or chawls, often between 3.0 to 4.0.
4. FSI for Slum Rehabilitation (SRA): Specific FSI for projects aimed at rehabilitating slum areas, typically ranging from 3.0 to 4.0.
5. FSI for MHADA Projects: Higher FSI for Maharashtra Housing and Area Development Authority projects, usually between 2.5 to 3.0.
6. *lFSI for Transit-Oriented Development (TOD): Enhanced FSI for projects near major transit hubs, such as 4.0 for developments near metro stations.
7. FSI for Commercial Zones: Higher FSI for commercial areas like Nariman Point, which can be as high as 5.0.
8. FSI for IT Parks and SEZs: Special FSI for Information Technology parks and Special Economic Zones, often ranging from 3.0 to 4.0.
RERA (Real Estate Regulatory Authority) Carpet Area
Definition: As per RERA guidelines, the actual usable area within an apartment, excluding the thickness of inner walls, balconies, and common areas.
Example: When advertising under RERA guidelines, a developer must specify the carpet area of a flat to provide transparency to buyers regarding the actual living space they will receive.
OC (Occupation Certificate)
Definition: A document certifying that a building is suitable for occupancy, issued by the local municipal authority.
Example: Before moving into a new apartment, ensure the builder has obtained the OC, confirming the building meets all regulations and is safe to occupy.
Stamp Duty
Definition: A tax paid to the government on property transactions, calculated as a percentage of the property's market value.
Example: If you purchase a property for ₹1 crore in Mumbai, the stamp duty might be around 5%, resulting in a payment of ₹5 lakhs to the government.
Ready Reckoner Rate
Definition: The minimum rate set by the government for property transactions, used to calculate stamp duty and registration charges.
Example: If the ready reckoner rate for an area in Bandra is ₹75,000 per sq ft, you cannot register the property for less than this rate.
MHADA (Maharashtra Housing and Area Development Authority)
Definition: A government organization involved in constructing and selling affordable housing.
Example: MHADA often holds lotteries for affordable housing units. Winning a lottery can get you a 1 BHK flat in Mumbai at a subsidized rate.
SRA (Slum Rehabilitation Authority)
Definition: A body responsible for rehabilitating slum dwellers by providing them with better housing.
Example: Slum areas in Dharavi are being redeveloped by SRA to provide modern housing to the residents.
LOI (Letter of Intent)
Definition: A preliminary agreement indicating the intention of the buyer to purchase the property.
Example: Before signing a sale agreement, a buyer might issue an LOI to the seller, expressing their intent to buy the property for ₹2 crores.
NOC (No Objection Certificate)
Definition: A document required from various authorities to ensure there are no objections to the property's development or sale.
Example: For developing a property in Bandra, a builder may need NOCs from the fire department, municipal corporation, and environmental authorities.
Pagdi System:
Definition: An old rental system where tenants pay a nominal rent and have significant rights, making eviction difficult.
Example: A tenant living in a pagdi system building in Dadar may pay only ₹1000 per month despite the property's high market value, and the landlord has limited rights to evict them.
Understanding these terms can help you navigate the Mumbai real estate market more effectively, whether you are buying, selling, or renting a property. For more information and assistance with your real estate needs, call -
Vishal Ojha - 9820056180
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