Glossary of Common Real Estate in India

Real Estate terms are evolving from local terms to standard terminology. With a professional real estate industry in place, it’s important to know the basic yet important terms of the industry:

1. Carpet Area: 

It is the actual usable area of an office/apartment/showroom etc. excluding the wall thickness. Simply put, it is area within the walls wherein you can lay a carpet.

2. Built-up Area: 

It is the total covered area of the apartment/office. It can be calculated as carpet area + wall thickness (internal +external) + balcony areas until the inside walls.

3. Super built-up Area: 

The built up area of a unit plus common areas proportioned to that unit form the Super Built-up area. Common areas include - lobby, lift shafts, staircases, covered club houses etc. It excludes open areas such as parks, roof terrace, gardens etc.

4. Floor Space Index (FSI):

Floor Space Index (FSI), also known as Floor Area Ratio (FAR) is the ratio of the Gross floor area of all floors combined (except areas exempted under specific regulations) to the total area of the plot. Higher the FSI/FAR indicates more dense construction.

5. Freehold property: 

It is the property where the chief title owner has conveyed the property in favor of the buyer by a sale deed with no restriction on the right of the property holder to further transfer the property. The ownership record of the freehold property can be ascertained from the sub-registrar office. The property can be transferred by registration of sale deed.

6. Credit Score: 

A statistically derived score of a person’s worthiness which is usually based on the person’s past credit history. It is generally used by the money lenders to ensure that likelihood of the person to repay his debts.

7. Conveyance: 

It is the act of transferring the rights, title, ownership & interests of a property from one person to the other. It also refers to the written document in the form of a deed or lease that legally transfers the title of the property from the seller to the buyer.

8. Per Square Foot Rate: 

It is a measurement unit, measuring the area in terms of a square with sides of 1 foot. The builders usually set the value of the property based on the per square foot rate of the super built-up area. That is why the super built-up area is termed as “Saleable area”.