Builders in Ahmedabad are set to discard the ‘super built-up area’ system across the state and will adopt the RERA (Real Estate Regulatory Authority) carpet rules in the upcoming year. Builders in all the cities of Gujarat will soon follow suit as well.
“Due to this new system, no property prices will increase overnight. Instead, transparency in property deals will increase,” said Dhruv Patel, president of CREDAI (Confederation of Real Estate Developers’ Associations of India)- previously known as GIHED (Gujarat Institute of Housing and Estate Developers).
Patel mentioned that along with the base price for the flats, facilities like parking lot, clubhouse, gym facility, garden, staircase, and lift will now be part of the common infrastructure, so consumers won’t have to pay a separate price for them.
Charges like that of AEC (Ahmedabad Electricity Co), AUDA (Ahmedabad Urban Development Authority), and legal fees will also be included in the price of the 1,000-square-foot flats, and the buyers will no longer pay them separately.
However, buyers will have to pay stamp duty, GST (Goods & Services Tax), maintenance deposit, and other charges as an additional payment from the original price.
Other additional charges will also include a second parking spot or any other additional facility provided to the buyer.
Patel added that the property area provided to the buyers will remain the same. A provision for measuring this area could also be provided to the buyers.
Till now, the super-built-up area was vaguely calculated as either 40%, 45%, or 48% at various places, which gave a different carpet area to the buyers. This practice will be brought to a close.
Will this affect property rates?
The CREDAI president mentioned that this practice won’t hike property rates but will bring transparency to property deals.
The new system will see a change in the square foot calculation. Thus, the property prices in super built-ups, which were priced at ₹10,000 per sq ft, are likely to increase to ₹18,000 to ₹19,000 per sq ft.
This would enable the buyers to consider the RERA area when purchasing the property.
The carpet area will also be mentioned in the documents issued to the buyers.
Ahmedabad’s real estate market, annually sized at around ₹40,000 to ₹50,000 cr, has been seeing an annual increase of around 12% over the past five years. This growth rate in the property market is likely to continue in the coming years as well.