Become an Expert: Common Real Estate terms used in the market

Real Estate is one of the biggest contributors to the Indian Economy. As more and more people are moving to urban cities such as Delhi, Mumbai, Bangalore, and Hyderabad, the demand for real estate is increasing.

So, it is extremely important for someone who’s looking to buy or invest in Real Estate to know and understand the various terms used in Real Estate. Here, we’ll look into the various terms and common jargon used in Real Estate.

• Super Built-Up Area/ Super Area: Super Built-Up area or Super Area is one of the most common jargon used in Real Estate. Super Area is the total area of a property. It also includes the carpet area, common stairways, lobbies, and area for lift, among other things into consideration. Think of it as the total area of land on which the property has been constructed. It is mostly used to calculate the maintenance fees over other things.
• Built-Up Area: Built-Up is a subset of Super Area. It is the total area of the property besides the common areas. It also includes the thickness of the walls consideration. It only includes the interior of the property.
• Carpet Area: In simple terms, Carpet Area is the area on which you can lay a carpet down. It is the most accurate measure of the space available for personal use. It includes rooms, kitchens, bathrooms, and any other enclosed spaces, but excludes the walls and common areas.
• BHK: It is an abbreviation of “Bedroom, Hall, and Kitchen”. It is used to indicate the number of bedrooms in a property.
• Freehold Property: A freehold property is a property in which the owner has complete ownership and absolute ownership of the property without any time limitations. You have full and perpetual ownership of the property. Owners of a freehold property have the right to make changes to the property subject to the local zoning laws and approval of regulations from the subjective municipal department.
• FAR (Floor Area Ratio): It is a zoning regulation that specifies how much area can be constructed on a given plot of land. It restricts the total area of the whole property that can built on the land. Different cities have different FARs based on the area and the location of the land. For example, areas close to the airport have a lower FAR compared to the lands in other areas. Floors having an area between 250 to 750 square meters in Delhi, the FAR is about 225. If a plot size 250 square meters, the property constructed on the land has to be only 562 square meters.
• FSI (Floor Space Index): FARs and FSIs are quite similar terms and are often used interchangeably.
• Primary Market: The primary Market in Real Estate is the market in which a developer or a builder sells directly to the customer whenever a project or a property is developed. For example, projects developed and sold to the customers directly by companies such as DLF, M3M, Emaar, etc come under this.
• Secondary Market: The secondary market in Real Estate is the secondary market after the primary market. Someone who bought a property from a primary market builder and now wants to sell someone else the property in the secondary market. Re-sale properties come under this market.
• Resale Property: A property that has been previously owned and is being sold by an individual or entity other than the original developer.
• EMI (Equated Monthly Installment): A fixed monthly payment made by the borrower to the lender for a home loan, which includes both the principal amount and interest.
• Title Deed: A legal document that proves ownership of a property.
• Joint Development Agreement (JDA): An agreement between a landowner and a real estate developer for the construction of a project, typically where the landowner receives a portion of the developed property in exchange.
• Stamp Duty: A state government tax on property transactions, including sale deeds and property agreements.
• Occupancy Certificate: A document issued by the local municipal authority that certifies that the property is safe for occupation and meets the necessary building standards.
• RERA (Real Estate Regulation and Development Act): A regulatory framework in India that aims to protect the interests of homebuyers and promote transparency and accountability in the real estate sector.
• Khata Certificate: A legal document that shows the property owner’s name, used for paying property taxes.
• Carpark: A designated parking space within a building or housing complex.
• Ready to Move (RTM): Properties that are complete and available for immediate possession without further construction work.
• Under Construction: Properties that are still being built or developed. These are usually available at a lower cost but come with the risk of project delays.
• Down Payment: The initial payment made by a buyer to the seller as a percentage of the property’s total cost.

These are just a few of the many terms you might encounter in the Indian real estate market. It’s essential to understand these terms and, if needed, feel free to seek advice from our Real Estate Experts at JMD Super Infratech when navigating the complexities of property transactions.