Why Homebuyers Must Consider Loading, Before Making A Purchase
While searching for a home, property seekers may often come across terms such as carpet area, built-up area and super built-up area. Usually, developers use these terms to explain to the home buyer, how spacious the property will be. However, an equally important concept called loading, which is often ignored, can be an important deciding factor in your property purchase.
To understand what loading factor is, a home buyer must know about the carpet area and the super built-up area. To know more, read here.
Carpet area is the floor area that you get within the walls of your property, while the super built-up area is the total area on which the apartment is constructed, including common areas such as the lift, lobby, staircase, gym, etc., in proportion to the unit. Loading factor is essentially the difference between these two concepts and is calculated as a percentage.
Formula to calculate loading factor
Let us assume that the super built-up area is 1,200 sq ft and the carpet area is 1,000 sq ft. The loading factor can be calculated by the below formula.
Why is loading factor important?
Home buyers should know the loading factor is an extra component, for the builder to recover the cost of additional facilities that they are providing, including lifts, lobby, maintenance room, parking and terrace. In premium projects, the loading may go as high as 60%, with the developer justifying the high loading on the basis of the superior amenities that are provided, as compared to usual projects.
“A majority of the developers do not mention the loading factor of a unit but it is important for buyers to know this term, as it gives the real value for investment. Most of the time, developers calculate loading in proportion to the super built-up area, instead of the carpet area, to bring down the loading percentage,” explains Vijay Singhania, a Bengaluru-based property broker.
The real estate law, notified two years ago, makes it mandatory for developers to disclose the carpet area of the units that they sell, along with the super built-up area, making it easier for the buyers to calculate the loading factor of the unit.
What is the ideal loading factor?
For flats, 30 per cent is the ideal loading factor. Anything else, would mean that the home buyer will end up with lesser carpet area. Smaller projects have less loading, while bigger projects with more amenities, will have higher loading.
Loading in top cities
Loading factor (in %)
Mumbai Metropolitan Region