Understanding Loading in Property
Do you also think that you will get possession of the whole area of a property shown in the brochure or advertised by the developer to use? The answer is a big No. If a builder has advertised that you will get a 2000 sq. ft. property with the basic price of 8000 per square foot, it doesn’t mean that you will get the whole 2000 sq. ft. area to live in. To know why, read further…
What is loading in real estate with an example?
Loading refers to the extra space included in your total super built-up area that you don’t actually use, but it is used for common spaces like the lobby, lift, common washrooms, and sometimes to build other amenities as per the need and demand.
Loading in Residential Projects
Total loading in residential projects varies from 30-35 percent.
Loading in Commercial Projects
Total loading in commercial projects varies from 40-50 percent.
How is loading calculated in real estate?
To calculate the loading in a real estate project, you have to use a simple formula. But first, get familiar with these terms related to the loading factor before proceeding with the calculation:
1. Super Built-Up Area: Total area including loading that you pay for.
2. Built-Up Area: The total area of a property, including the carpet area and the area of the walls, balconies, and other livable spaces. It's also known as the gross area of a flat.
3. Carpet Area: The actual usable area within your unit or flat, excluding walls and common areas.
Loading Formula In Real Estate
Example:
• The super built-up area is 2500 sq. ft.
• The carpet area is 2000 sq. ft.
Now, to find the loading factor:
• First, divide the super built-up area by the carpet area:
• 2500 divided by 2000 equals 1.25.
Now, subtract 1 from the result:
• 1.25 minus 1 equals 0.25.
• So, the loading factor is 0.25 or 25%.
This means the tenant is paying for 25% more area than they actually use, because of shared spaces like hallways, elevators, etc.
Always check loading while purchasing property
It’s crucial for property buyers to check the loading factor before purchasing a residential or commercial space. A builder will never clearly mention the loading factor in their brochure or advertisement.
Suppose you need 2000 sq. ft. of carpet area for your business and you purchase a commercial space thinking that you will get 2000 sq. ft. of carpet area. But in reality, if a commercial space has 50% loading, which is a standard for commercial spaces, it means your actual carpet area becomes 1000 sq. ft. So, always calculate the loading factor while determining your space needs.
In conclusion, loading in real estate refers to the extra space added to your total area for common areas like lobbies, lifts, and washrooms. It’s important to understand the loading factor when buying property, as you may not get the full area advertised.
Always check the loading percentage to know how much actual usable space you are getting. This helps avoid surprises and ensures you make an informed decision when purchasing property.
Frequently Asked Questions
How to calculate Loading Factor In A Flat?
To calculate the loading in a real estate project, you have to use a simple formula. Super Built-up Area = Carpet Area x 1 - Loading Factor.
What is the loading factor in RERA?
In RERA, the loading factor refers to the common area allocated to all project apartments.
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