Real Estate tips: Housing price - More than what meets the eye

PRICES add up

BASE SALE PRICE: The base price declared by the developer to Shah was Rs 23,000 per sq ft. The area of their 2 BHK flat was 1,350 sq ft of super built-up area. Like any other buyer, Shah calculated the cost as 1,350 sq ft × Rs 23,000 = Rs 3.10 crore plus stamp duty and registration charges as per the rules applicable. The rate looked competitive as compared to others in the vicinity and seemed much better with a fraction of the cost considered for amenities. The joy was short-lived, as it was time for the other expenses to add up.

OTHER COSTS: This includes charges for floor rise, car parking, clubhouse, infrastructure, society, maintenance, and taxes thereon.

Floor rise: Developers usually charge anywhere between Rs 60–140 per floor rise. The Shahs wanted the 12th floor and considering an average floor rise as Rs 100 per floor, the cost for 11 floors up is 11 × Rs 100 = Rs 1,100 per sq ft. Add this to base rate, which now becomes

Rs 24,100 per sq ft.

Infrastructure cost: This is a newer expense head created for keeping the base price low. This is usually a charge for common infrastructural facilities such as

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