Latest news with #PrashantThakur
Hindustan Times
13-06-2025
- Business
- Hindustan Times
Why more amenities may mean less space in your new home: What homebuyers should know about the loading factor
When buying an apartment today, especially in the luxury segment, you're not just paying for four walls. Modern projects often include clubhouses with restaurants, reception areas, lounges, and other upscale amenities. While these features enhance lifestyle, they also contribute to a higher loading factor, and ultimately, a higher price tag. Although most developers now quote prices based on RERA-defined carpet area, buyers may still end up paying more due to the cost of expansive common areas. The growing trend toward amenity-rich living highlights the importance of transparent disclosures, ensuring that homebuyers get clarity on exactly how much private living space they're paying for. 'Amid the rising demand for real estate projects with modern amenities, the 'loading' factor has been on the rise across the top cities of India,' according to a report by ANAROCK, a real estate consultancy. The loading factor is the difference between the super-built-up area and the carpet area of the apartment. The report said the loading factor is the highest in the Mumbai Metropolitan Region (MMR) followed by Bengaluru, and Delhi NCR. 'While RERA now requires developers to mention the total carpet area provided to homebuyers, no law currently limits the loading factor in projects," Prashant Thakur, Regional Director and Head, Research and Advisory, ANAROCK Group, said. 'Q1 2025 data shows that homebuyers in the top seven cities now get only 60% of the total space they pay for as actual liveable area within their apartments. The remaining 40% comprises common areas such as elevators, lobbies, staircases, clubhouses, terraces, and other amenities. Back in 2019, the average loading was around 31%,' Thakur said. Also Read: Mumbai real estate market: Planning to sell a flat in an old building? Here's why it can be tough According to real estate experts, developers are expanding common facilities, gyms, pools, lounges, and fire-safety infrastructure, to meet rising homeowner expectations. While these amenities enhance comfort and resale value, they reduce actual living space within individual apartments. They said homebuyers are now paying significantly more for common areas in modern apartment projects. The shift toward amenity-rich developments boosts lifestyle quality but underscores the need for transparent disclosures to ensure buyers aren't short-changed on living space. "Technically, apartments are to be sold based on RERA carpet area, which means there shouldn't be any concept of a 'loading factor'. Yet, in practice, it still exists without formal recognition," Jayesh Rathod, co-founder and director of The Guardians Real Estate Advisory. For instance, while homebuyers purchase apartments based on the RERA carpet area, the overall cost continues to rise, not just due to market appreciation or higher construction costs, Rathod said. Also Read: Homebuyers can't seek reimbursement of home loan interest from developer for delay in completion of project: SC Over the years, FSI (Floor Space Index) and premium charges have increased significantly. As a result, developers stick to the rule book but expand construction in common areas to manage approval costs. Ultimately, these costs, whether directly or indirectly, are passed on to homebuyers, leading to an increase in the effective loading ratio, Rathod explained. According to the Anarock report, MMR continues to see the highest loading among the top 7 cities, with 43% in Q1 2025. The region has seen the average loading percentage grow steadily over the years, from 33% in 2019 to 39% in 2022 and 43% in Q1 2025. Chennai, on the other hand, had the least average loading rise in Q1 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. Also Read: Supreme Court reaffirms that property shares become self-acquired after a joint family split, granting the right to sell In 2019, Chennai's average loading percentage was 30%, like Bengaluru's. It gradually rose to 32% in 2022 and 36% in Q1 2025. In NCR, the average loading percentage rose from 31% in 2019 to 37% in 2022 and to 41% in Q1 2025. Further, Pune's loading factor was 32% in 2019, rose to 36% in 2022, and stood at 40% in Q1 2025. Hyderabad's loading percentage increased from 30% in 2019 to 33% in 2022 and to 38% in Q1 2025. On the other hand, Kolkata's average loading factor increased from 30% in 2019 to 35% in 2022, and further to 39% in Q1 2025.
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Business Standard
09-06-2025
- Business
- Business Standard
Gap between built up area & carpet area rises in apartment to 40%: Anarock
The difference between super-built-up area and carpet area in apartments has risen over the years with builders increasing average loading percentage to 40 per cent across major cities to provide common amenities, according to Anarock. The average loading percentage was 31 per cent in 2019, and the same has risen to 40 per cent in the January-March quarter of this year, which means flat owners are getting less livable space. In its report, real estate consultant Anarock said that in residential apartments, the average loading factor is the difference between the super-built-up area and carpet area. If the super built-up area is 1,300 square feet and the carpet area 1,000 sq ft, then the loading percentage is 30 per cent. Prashant Thakur, Regional Director & Head - Research & Advisory at ANAROCK Group, said, "While RERA now requires developers to mention the total carpet area provided to homebuyers, no law currently limits the loading factor in projects." "Q1 (January-March) 2025 readings show that 60 per cent of the total space within their apartment homebuyers in the top 7 cities pay for now is liveable space, and the remaining 40 per cent is common areas - elevators, lobbies, staircases, clubhouses, amenities, terraces, and so on," he added. Among the top 7 cities, Bengaluru has seen the highest percentile jump in average loading over the last seven years from 30 per cent in 2019 to 41 per cent in Q1 2025. Mumbai Metropolitan Region (MMR) continues to see the highest loading among the top 7 cities, with 43 per cent in Q1 2025 from 33 per cent in 2019. Chennai, on the other hand, has the least average loading rise. In 2019, Chennai's average loading percentage was 30 per cent. It gradually rose to 36 per cent in Q1 2025. In Delhi-NCR, the average loading percentage rose from 31 per cent in 2019 to 41 per cent in Q1 2025. In Pune, it was 32 per cent in 2019 and has now risen to 40 per cent in Q1 2025. Hyderabad saw an average loading percentage increase from 30 per cent in 2019 to 38 per cent in Q1 2025. Kolkata too saw its average loading factor increase from 30 per cent in 2019 to 39 per cent in Q1 2025. Commenting on the report, Angad Bedi, CMD of Bengaluru-based BCD Group, said, "Interestingly, the real estate sector is becoming increasingly experiential with their uniquely designed projects and their amenities becoming a key selling proposition. From saunas to state-of-the-art club houses and wellness centres to sports arenas, the growing demand for lifestyle-centric living is fueling this shift." Bhavesh Kothari, Founder & CEO of Property First, said, "This shift is led by the growing share of millennials in the customer cohort who are not just investing in carpet areas, instead, they're investing in building a lifestyle. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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Business Standard
09-06-2025
- Business
- Business Standard
Average apartment loading grows in top cities amid demand for amenities
Amid rising demand for state-of-the-art amenities within housing projects, the loading factor has grown to 40 per cent in the first quarter of the 2025 calendar year (Q1CY25) from 31 per cent in 2019 across the top Indian cities, according to research by Anarock. In residential apartments, the average loading factor is the difference between the super-built-up area and the carpet area. This means that the homebuyers are paying 40 per cent of their total homebuying money for the common areas like elevators, lobbies, clubhouses, staircases, terraces, gyms, and other amenities in Q1CY25, against 31 per cent in 2019. Dr Prashant Thakur, regional director & head - Research & Advisory, Anarock Group, said, 'While Rera now requires developers to mention the total carpet area provided to homebuyers, no law currently limits the loading factor in projects. Q1 2025 readings show that 60 per cent of the total space within their apartment homebuyers in the top seven cities pay for is now liveable space, and the remaining 40 per cent is common areas - elevators, lobbies, staircases, clubhouses, amenities, terraces, and so on. The average loading percentage was 31 per cent back in 2019.' Among the top seven cities, Bengaluru has seen the highest percentile jump in average loading over the last seven years, from 30 per cent in 2019 to 41 per cent in Q1CY25. In 2022, 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, the report noted. The Mumbai metropolitan region (MMR) continued to see the highest loading among the top seven cities, with a 43 per cent loading factor in Q1CY25, from 33 per cent in 2019. Chennai, on the other hand, witnessed the least average loading factor, which stood at 36 per cent in Q1CY25 against 30 per cent in 2019, 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 the past, a loading of 30 per cent or less was thought to be typical. 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. Collectively, these features may improve comfort, community liveability, and also resale value. However, homebuyers effectively lose on actual usable space within their apartments,' Thankur added. Essential infrastructure in modern housing projects now typically includes more lifts with bigger passenger capacities, amplified utility areas, and fire escapes that meet regulatory safety protocols. In high-density urban developments, optimising space for both private and shared use is crucial for a better living experience and long-term value, making some level of extra loading an inescapable fact of life. 'In most cases, buyers across cities, except in Maharashtra, are unaware of how much they pay towards the overall usable space within their apartment. Respective state Reras should ideally enforce provisions wherein each project clearly mentions how much buyers are paying for the total usable space within the apartment, and for the amenities,' said Thakur.
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Business Standard
09-06-2025
- Business
- Business Standard
Avg apartment loading grows in top cities amid demand for amenities: Report
Amid rising demand for state-of-the-art amenities in housing projects, the 'loading' factor rose to 40 per cent in Q1 CY25 from 31 per cent in 2019 across major Indian cities, according to research by Anarock. In residential apartments, the average loading factor refers to the difference between the super built-up area and the carpet area. This implies that homebuyers are now paying 40 per cent of the total purchase cost for common areas such as elevators, lobbies, clubhouses, staircases, terraces, gyms and other amenities in Q1 CY25, compared to 31 per cent in 2019. Dr Prashant Thakur, regional director and head – research and advisory, Anarock Group, said: 'While RERA now requires developers to mention the total carpet area provided to homebuyers, no law currently limits the loading factor in projects. Q1 CY25 readings show that 60 per cent of the total space homebuyers in the top seven cities pay for is now liveable space, and the remaining 40 per cent is common areas — elevators, lobbies, staircases, clubhouses, amenities, terraces and so on. The average loading percentage was 31 per cent back in 2019.' Bengaluru sees sharpest jump Among the top seven cities, Bengaluru saw the highest percentage increase in average loading, from 30 per cent in 2019 to 41 per cent in Q1 CY25. This trend aligns with a rise in high-end lifestyle demands in the IT hub, prompting developers to offer a wider range of modern amenities, the report noted. The Mumbai Metropolitan Region (MMR) continued to record the highest loading among the top cities, rising to 43 per cent in Q1 CY25 from 33 per cent in 2019. Chennai, on the other hand, witnessed the lowest average loading factor, which stood at 36 per cent in Q1 CY25, up from 30 per cent in 2019. This reflects a city-specific trend where homebuyers prioritise usable space within their homes over expansive shared amenities. Changing norms in urban housing 'In the past, a loading of 30 per cent or less was considered typical. 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, landscaped gardens and grand lobbies. Collectively, these features may improve comfort, community liveability and also resale value; however, homebuyers effectively lose actual usable space within their apartments,' Thakur added. Essential infrastructure in modern housing projects now typically includes additional lifts with higher passenger capacity, larger utility areas and fire escapes that comply with safety regulations. In high-density urban developments, balancing private and shared space has become crucial for long-term value and better living experiences, making some level of higher loading an inescapable part of modern housing. 'In most cases, buyers across cities — except in Maharashtra — are unaware of how much they pay for the actual usable space within their apartment. Respective state RERAs should ideally enforce provisions requiring each project to clearly state how much buyers are paying for the usable apartment space and how much for shared amenities,' Thakur said.
Time of India
08-06-2025
- Business
- Time of India
Carpet area of new flats in Mumbai 43% less than super built-up — biggest gap in country
Mumbai: Apartments in the Mumbai Metropolitan Region (MMR) have the highest 'loading' factor — difference between super-built-up area and carpet area — among the top seven Indian cities. Tired of too many ads? go ad free now According to data collated by ANAROCK Research, MMR has a loading factor of 43%. As an example, a 1,000 sq ft flat will have a living area of under 600 sq ft. "Earlier, super built-up areas were the norm for quoting and marketing, which often overstated the liveable space. While the conversation around square footage continues in the sales room across the table, the focus in advertising appears to have shifted from actual flat sizes, which was more prevalent in earlier years, to taglines such as 'spacious 2 BHK' in advertisements and on hoardings,'' said Prashant Thakur, Regional Director & Head - Research & Advisory, ANAROCK Group. "RERA mandates that all mentions of size must be only based on carpet area. This is strictly mandated in Maharashtra, so marketing has had to adapt to steering the messaging around features and amenities instead. Buyers have become more conscious of shrinking liveable spaces and rising loading percentages," he added. Amid the rising demand for state-of-the-art amenities within housing projects, the 'loading' factor has been on the rise across the top cities. MMR continues to see the highest loading— difference between super-built-up area and carpet area— among the top 7 cities with 43% in Q1 2025. The region has seen the average loading percentage grow steadily over the years —from 33% in 2019 to 39% in 2022, and 43% in Q1 2025. Bengaluru has seen the highest percentile jump in average loading over the last seven years, from 30% in 2019 to 41% in Q1 2025. In 2022, it was 35%. 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. Tired of too many ads? go ad free now Chennai, on the other hand, has the least average loading rise in Q1 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%, like Bengaluru. It gradually rose to 32% in 2022 and further to 36% in Q1 2025. In NCR, average loading percentage rose from 31% in 2019 to 37% in 2022, and 41% in Q1 2025. In Pune, it was 32% in 2019, rose to 36% in 2022, and stood at 40% in Q1 2025. Hyderabad saw an average loading percentage increase from 30% in 2019 to 33% in 2022, and to 38% in Q1 2025. Kolkata too saw its average loading factor increase from 30% in 2019 to 35% in 2022, and further to 39% in Q1 2025. "While RERA now requires developers to mention the total carpet area provided to homebuyers, no law currently limits the loading factor in projects. Q1 2025 readings show that 60% of total space within their apartment that homebuyers in the top seven cities pay for is livable space, the remaining 40% is common areas – elevators, lobbies, staircases, clubhouses, amenities, terraces, and so on. The average loading percentage was 31% back in 2019," said Thakur. "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. Collectively, these features may improve comfort, community livability, and also resale value; however, homebuyers effectively lose on actual usable space within their apartments, " he said. Essential infrastructure in modern housing projects now typically includes more lifts with bigger passenger capacities, amplified utility areas, and fire escapes that meet regulatory safety protocols. In high-density urban developments, optimizing space for both private and shared use is crucial for a better living experience and long-term value, making some level of extra loading an inescapable fact of life. "Respective state RERAs should ideally enforce provisions wherein each project clearly mentions how much buyers are paying for the total usable space within the apartment, and for the amenities," the ANAROCK report said.
