Rising prices for shrinking houses: How lavish lifestyle comes at the cost of higher loading factor; check this before you buy
Imagine an Olympic-size swimming pool, a swanky multistorey clubhouse, badminton and tennis courts, and landscaped gardens. A few years ago, you would have been picturing a luxury retreat nestled somewhere in the hills. But what was once a dreamy escape is now part of everyday life for many. An oasis of calm, comfort and luxury awaits Indian homeowners within plush housing complexes mushrooming amid the hustle-bustle of its big cities. However, this elevated living comes with a sharp trade-off: homebuyers are paying through the nose for open spaces, while making do with less living space.
Lavish living, cramped spaces
When you buy an apartment, you do not just pay for the liveable area within its four walls. A portion of the cost also goes toward shared spaces in the housing society—this is known as the '
loading factor
'. It refers to the proportionate share of ancillary common areas and amenities added to the carpet area (usable inner home area) and included in the price charged to the buyer. It essentially refers to the difference between the super built-up and the carpet area of an apartment. To put it simply, the carpet area refers to the floor space where you can actually lay a carpet. The built-up area includes the carpet area plus the space taken up by the walls and ducts. The super built-up area includes the built-up area along with a proportionate share of common spaces such as the staircases, lift shafts, entrance lobbies, corridors, parking areas, and amenities. 'In India, property prices are usually calculated based on the super built-up area. While developers market homes based on this figure, the real value lies in the carpet area,' points out Akhil Rathi, Head– Financial Advisory at 1 Finance.
A recent report by ANAROCK throws light on the steep premium homebuyers are paying for their lap of luxury. According to the
real estate
consultancy, the average loading factor in apartments across India's top seven markets has climbed sharply from 31% in 2019 to 40% in January-March 2025. This means that of the total space you are paying for, only 60% is the home interior, while 40% of the cost is for the common areas and amenities. In the past, a loading of 25-30% was the norm.
Loading factor has surged
MMR faces highest loading; Bengaluru sees steepest rise
Homebuyers' preferences for a certain lifestyle is contributing to this trend. Nowadays, homebuyers covet expansive lounge areas with cafes, state-of-the-art gymnasiums, rooftop decks and multi-purpose utility areas. Experts point out that the loading factor is directly proportional to the amenities in a project. The cost of additional amenities provided by the developer is usually passed on to customers in the form of loading charges. Invariably, loading will be higher for larger projects, where more space is allotted to amenities and common areas.
Live Events
Prashant Thakur, Regional Director & Head–Research & Advisory, ANAROCK Group, observes, 'Today, higher amenity loading has become the norm across most projects partly because homebuyers are no longer satisfied with basic lifestyle amenities— they expect fitness centres, clubhouses, park-like gardens, and grand lobbies.' Additionally, regulatory and safety requirements, such as fire escapes, utility zones, and larger elevators, further increase the common areas, thereby adding to the loading, points out Rahul Purohit, Cofounder & Chief Business Officer, Square Yards.
But the flip side is that homebuyers end up giving up on actual living spaces. Buyers often end up paying a premium for homes with less actual living area because the pricing is based on the super built-up area, not the space the residents actively use, Rathi explains. 'While such facilities may enhance the community living experience, they also reduce the size of individual units, resulting in tighter bedrooms or smaller living spaces,' he says. Jayesh Rathod, Co-Founder and Director of The Guardian Real Estate Advisory, asserts, 'Homebuyers are increasingly paying a significant portion of their total home cost for shared spaces rather than actual liveable space.'
'While high loading doesn't automatically lower resale prices, it may narrow the pool of interested buyers due to perceived space inefficiency", says Akhil Rathi, Head – Financial Advisory, 1 Finance.
According to the ANAROCK report, Mumbai Metropolitan Region continues to see the highest loading among the top seven cities, with 43% in January-March 2025. Bengaluru has seen the highest percentile jump in average loading over the last seven years–from 30% in 2019 to 41% in January-March 2025. The ANAROCK report suggests this dovetails with the increasingly higher saturation of modern amenities that developers now include to cater to the higher lifestyle ask in the IT hub. Chennai, on the other hand, has the least average loading rise in January-March 2025 with 36%, aligning with a city-specific demand profile where homebuyers prefer to pay more for usable space within their homes rather than for common areas. In 2019, Chennai's average loading percentage was 30%.
Same budget, different loading factors
Knowing the loading factor helps assess value.
Balancing act
For homebuyers, the loading factor of an apartment is critical when evaluating projects with extensive amenities and open spaces. It is indicative of the functionality of the house. It also reveals the real value behind the price tag. Loading ratio tells you how much space you get for the money you spend. If the ratio is higher, it implies that you are paying a higher price per square foot than the advertised cost. Homebuyers can effectively compare relative value proposition of different projects. For example, if two apartments—Unit A and Unit B—each have a super built-up area of 1,000 sq ft and are priced atRs.75 lakh, but their loading factors are 25% and 33% respectively, it means Unit A offers more liveable space at 800 sq ft compared to Unit B's 750 sq ft. This trade-off between amenities and functional space begs careful consideration.
'This trade-off, paying more for less private space, has become a growing concern among urban homebuyers, especially in cities where affordability is already a challenge,' says Rathi. Individual preferences may differ, so buyers should evaluate offers accordingly.
'Higher amenity loading has become the norm across most projects partly because homebuyers are no longer satisfied with basic lifestyle amenities," says Prashant Thakur, Regional Director & Head -Research & Advisory, Anarock.
'For buyers who value access to curated amenities and community experiences, the premium associated with such projects can be well worth it, even if it means a slightly smaller functional space,' avers Purohit. Conversely, for those who prioritise maximum carpet area and functional layouts over lifestyle features, choosing a project with minimal loading and fewer amenities might be more suitable, he adds.
Loading may also impact the resale value of your house. It can bolster or dilute the appeal of the tenement, depending on buyer preferences in the secondary market, experts say.
Housing prices have shot up sharply
Bengaluru has seen highest jump; Mumbai commands biggest premium.
'On one hand, projects with premium amenities and lifestyle-driven features often appeal to a certain segment of buyers looking for comfort, convenience, and community living. However, if the functional space feels significantly compromised, it could limit the resale pool or affect price appreciation over time,' contends Purohit.
'Higher loading may affect the resale value in some cases, particularly when similar properties in the vicinity or even nearby locations offer more usable space at the same price,' Thakur remarks.
How to calculate loading factor
Buyers must verify charges to avoid overpaying for less space.
If super built-up area is 1,000 sq ft and carpet area is 750 sq ft:
Older or more thoughtfully designed homes with minimal loading and better space distribution often attract greater interest during resale, Rathi points out.
However, if a new project is developed by a well-known builder and offers premium amenities, some buyers may still find value in the overall lifestyle offering. 'So, while high loading doesn't automatically lower resale prices, it may narrow the pool of interested buyers due to perceived space inefficiency,' Rathi adds.
Get clarity on the loading factor
For homebuyers, clarity on the loading factor and actual living area is essential. Unfortunately, the practise of 'loading' in real estate is shrouded in a web of secrecy. Developers conveniently do not mention the loading factor in their glossy sales brochures. Regulations do not mandate developers to disclose this figure either. This leaves homebuyers in the dark about the value they are getting. To be sure, the Real Estate (Regulation and Development) Act, 2016, requires developers to mention the total carpet area provided to homebuyers. But not all states enforce the law. 'In most cases, buyers across cities, except in Maharashtra, are unaware of how much they pay towards the overall usable space within their apartment,' avers Thakur.
Besides, there is no law that currently limits the loading factor in residential housing. It is left to the discretion of the developers, who justify higher loading for the amenities provided. In the absence of any regulation, some developers charge loading as high as 50% or more for their projects, experts point out.
The onus is on buyers to remain vigilant. Here's what you can do:
Ask your builder, the exact carpet area you are paying for and compare it with the super built-up area. 'Request a clear breakdown of costs, what portion goes to actual usable space and what is for common amenities,' says Rathod.
Compare carpet-to-super built-up ratios across similar projects, thoroughly study floor plans, and, if needed, consult an architect or a real estate adviser. 'Comparing loading percentages across projects can highlight anomalies and offer a strong basis for negotiation, especially if the loading appears excessive,' Purohit comments.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
31 minutes ago
- Hans India
India's exports of pharmaceuticals, textiles, jewellery to US likely to go up after bilateral trade pact
New Delhi: Although the US is India's largest export partner, there is scope to increase exports further in areas such as smartphones, certain pharma products and labour-intensive exports such as textiles and gems and jewellery under the bilateral trade agreement (BTA) between the two countries that is expected to be signed by the fall (September-October) of this year, according to a Crisil report released on Monday. To begin with, India should be prepared to see more imports from the US under the BTA. This is because India's tariffs are much higher than those of the US, and bringing these down would be advantageous to exporters in the US, the report points out. It highlights that the imminent bilateral trade agreement will likely lead to a reduction in India's goods trade surplus with the US. India would be able to import more energy products, defence equipment and certain agricultural products, among others, from the US after the agreement is signed. The report further states that India accounts for only a small part of the USA's imports. India's exports, however, are unlikely to see a major spike because the focus of the Donald Trump administration is to reduce its trade deficit with India, and most of India's top exports to the US are already duty-free (i.e. before the application of baseline 10 per cent, which is applicable since April 10). Besides, the export potential would also depend eventually on the amount of tariff India faces when compared with other competing nations, it added. According to the report, there is some potential to improve. The US is not only the world's largest economy, but also the world's largest importer. In 2024, its goods imports stood at $3.36 trillion (in contrast, China and Germany, the second- and third-largest importing nations, recorded $2.59 trillion and $1.43 trillion worth of goods imports, respectively), according to ITC Trade Map. But India's share in the US's global imports was just 2.7 per cent. Thus, there is some scope for India to increase its exports to the US. The report said that "to understand the areas where India can potentially increase exports to the US, we assess the following two matrices". "Among the top 25 items India exports to the US, products such as diamonds, marine products and bed linen already have a high penetration there. The penetration remains low for others, such as smartphones and certain pharma products. Also, only two of India's top 25 export items faced the most favoured nation (MFN) tariff in 2024; others were duty-free. Clearly, this means Indian goods will have to become more competitive to gain further market share. Though a vast majority of India's exports to the US are duty-free, several products attract MFN tariffs. For instance, out of the US's goods imports of $91.2 billion from India in 2024, $32.9 billion worth of goods (36 per cent) attracted tariffs. The US announced reciprocal tariffs on India and a host of other nations on April 2, 2025, and then paused the increase for 90 days from April 10 to negotiate trade deals with these countries (for India, the reciprocal tariff was 26 per cent, lower than the tariff on many other Asian peers). During the pause period, a 10 per cent base tariff remains applicable (over and above the existing tariffs) on all countries, including India.
Mint
an hour ago
- Mint
Colgate-Palmolive eyes H2 rebound amid urban stress, rural growth
New Delhi: Despite a 'tough" March quarter and lingering pressure on many urban consumers, Prabha Narasimhan, managing director and chief executive officer (CEO) of Colgate-Palmolive (India) Ltd, expects a rebound in consumer sentiment and spending in the latter half of the year. She cited government interventions, improved liquidity and a good start to the monsoons as key drivers for this change. 'We're hoping the uptick in consumer sentiment happens towards the back end of the year. The government has intervened, there's been a tax cut, liquidity has improved, monsoons are meant to be quite good this year—all of those should certainly help. We see two pockets of opportunity—the top 30% of urban India has no shortage of money for FMCG products; they continue to want to premiumize. Meanwhile, rural India continues to be buoyant—crops have been good and the sentiment is also positive. However, there is stress in 70% of urban India that has been slightly under pressure," Narasimhan said in an interview with Mint on Monday. Also read: Trent sticks to the long-term goal of growing 25% every year In fiscal 2025, the maker of toothbrushes and body wash reported a 6.3% increase in sales, reaching ₹5,999 crore, compared to ₹5,644 crore in the previous year. The company's profit after tax in FY25 grew by 8.5% to ₹1,437 crore, up from ₹1,324 crore in the previous year. However, the fourth quarter saw a dip in both profit and sales, with net profit down 6.5% to ₹355 crore and revenue declining 2% to ₹1,452 crore. Rural volumes grew ahead of urban for the Mumbai-headquartered company during the fiscal year. The March quarter was 'tough", she said. Analysts attributed this to greater competition and weak urban demand. Managing consumption 'Consumers respond to a feeling of confidence. If they feel a little bit of pressure, then they tend to optimize across all parts of their budget. There are some things that are sacrosanct such as medical and education [expenses]. In the case of oral care, it is management of consumption; it's not through smaller pack sizes or cheaper packs," she told Mint in an interview in the capital. The Indian fast-moving consumer goods (FMCG) industry reported 11% year-on-year value growth in the March quarter, driven by a 5.1% volume increase and a 5.6% price hike, according to data released by NielsenIQ. Also read: Govt may relax registration rules for e-commerce players, traders unhappy Urban market growth decelerated in the March quarter, while rural markets saw an 8.4% volume increase, a slight dip from the December quarter. Other large packaged goods companies such as Procter & Gamble Hygiene and Health Care Ltd, the maker of Whisper, Vicks and Old Spice, gave similar commentary earlier this month. The company reported a steady revival in rural consumption, even as urban demand remains under pressure. The home and personal care category, where Colgate Palmolive operates, saw consumption growth of 5.7% in the March quarter, with higher demand in rural areas, NielsenIQ noted. The company competes with Dabur India and Hindustan Unilever Ltd. Oral care penetration Meanwhile, the maker of Colgate toothpaste and Palmolive body wash continues to increase the usage of oral care products in India. 'We would like to move the needle as far as urban India is concerned—to get the 80% of consumers who don't brush twice a day to brush twice a day. As far as rural India is concerned, the aim is to get the one in two consumers who don't brush daily to brush daily," she said. A decade ago, oral care penetration in India was around 85%. Today, it's close to universal. The company has also been pushing its flagship Oral Health Movement. Also read: P&G Hygiene sees rebound in rural demand, but urban stress persists As part of the same, over 4.5 million Indians screened their oral health in 700 districts. The company spent 14% of its FY25 annual sales on advertising. Narasimhan said the number will remain in the ballpark and within that range in the current fiscal, too. Meanwhile, commenting on global geopolitical volatility, Narasimhan said the company is largely insulated from supply chain disruptions. 'We are a largely 'make in India' for India company, so almost our entire production of both toothpaste and toothbrush is in India across our four plants. We are reasonably self-sufficient in that sense. We've tried very hard to localize, even to source raw materials; to that extent, one is a little bit insulated from all of this. The macro environment has become so volatile that it's just impossible to comment on and it's impossible for us to do anything other than to insulate on a more structural basis as we have done and continue to do," she added.
Time of India
an hour ago
- Time of India
The Power of Rudraksha Beads in Planetary Healing
I observe a pile of rudraksha beads, some strung as a mala. Subtle Navagraha symbols and associated deities create a peaceful, spiritual backdrop. In Indian spiritual practices, rudraksha beads are revered and have a strong connection to astrology and planetary healing . Traditionally connected to Lord Shiva, these organic seeds are thought to contain potent vibrations that affect the body, mind, and soul. Rudraksha beads are used as remedies in astrology to bring harmony to life and balance planetary energies. Rudraksha Beads: What Are They? The seeds of the Rudraksha tree, which is primarily found in Nepal and some regions of India, are used to make Rudraksha beads. The type and particular astrological effect of each bead are determined by its natural lines, or "mukhis." There are between one and twenty-one types of mukhis, and each is associated with a specific planet or deityAstrological Benefits by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo Rudraksha beads are known to absorb and regulate planetary vibrations. They are often prescribed by astrologers as natural and non-invasive remedies to pacify malefic planets or strengthen weak ones. 1 Mukhi Rudraksha – Linked to the Sun; promotes self-confidence and leadership. 2 Mukhi Rudraksha – Associated with the Moon; brings emotional balance and peace. 3 Mukhi Rudraksha – Connected to Mars; reduces anger and helps control impulsiveness. 5 Mukhi Rudraksha – The most common; balances Jupiter energy and improves wisdom and calmness. 7 Mukhi Rudraksha – Related to Saturn; helps in overcoming delays and obstacles. Rudraksha beads can be stored in a sacred area or worn as a mala (necklace) or bracelet. It's crucial to energize the bead using the right ceremonies and wear it only after making sure it aligns with your birth chart. A spiritual way to deal with the consequences of planetary imbalances is to wear rudraksha beads. When used with faith and appropriate guidance, they not only aid in astrological healing but also foster mental clarity, peace, and spiritual development.
