Content Analyst at Investors Clinic
Buying dream home, personal space for your family is one of the most crucial financial decisions of your life. It sounds fascinating to buy your dream home; however it involves a lot more than that. Real estate terms in India or real estate terminology India, abbreviations in real estate or an acronym for real estate are few elements known to real estate working professionals only.
The sound understanding of real estate jargons helps you make informed decisions, identify hidden expenses, and avoid confusions. Knowing these terms and with the help of real estate consultants you can confidently invest in real estate projects.
What Is Real Estate Terminology India?
Real estate terminology India are terms framed and used by Indian Government body that regulates Real estate laws in the country. These terminologies are based on types of property, rights to ownership, details of construction, pricing, and legal status. It majorly depends on:
- State-wise regulations
- Kind of project (residential or commercial)
- Builder documentation
- Banking and legal requirements
Real Estate Terms in India Buyers Should Know
Understand the following real estate terms in India:
- Carpet Area: The actual space on which whole single unit construction is done
- Built-up Area: It sums up Carpet Area + Walls width + balconies space
- Super Built-up Area: It sums up Capet Area + Built-up Area + common areas like elevators and staircase
- Apartment vs Flat: Flat or apartment both residential units inside the building and differs on the basis of amenities provided to residents
- BHK: Bedroom, Hall, and Kitchen
Real Estate Terms Used in Projects & Construction
While assessing real estate projects, builders use construction-related jargons which buyers should be aware of:
- Gated community: Building covered with walls all around and gates with restricted access to strengthen residents’ security
- Amenities: Facilities provided to buyers such as gym, swimming pool, park, clubhouse, etc.
- High-rise and Low-rise: Referred to building’s height and density
- Date of Possession: Anticipated date when buyers can start living in the unit.
- Occupancy Certificate: OC attests to the building's suitability for habitation under the law
Financial & Home Loan Terms in Real Estate
Financial terms often used by real estate consultants, builders, and bankers in the real estate are as follow:
- Base Price: Basic price based on per square foot without any accessories
- PLC (Preferential Location Charges): These charges based on choice of your floor or view from balcony such as lake-view, park view and so on.
- EMI: Your home loan’s monthly installment
- Government tax: Stamp duty
- Registration Fees: Documentation charges of ownership
Legal & Ownership Real Estate Terms
Legal clarity protects buyers from fraud and disputes. Key legal terms pertaining to Indian real estate include:
- Freehold property: Complete possession of the property with no time constraints
- Leasehold property: Possession of the property for a limited duration of time.
- Sale deed: Official document used during the process of transfer of ownership
- Title Deed: It is considered as the proof of prior ownership
- RERA Registration: It is a compulsory registration of the property under Indian law framed by Real Estate Regulatory Authority
Investment & Luxury Property Terms
The following terms should be understood by buyers considering luxury residences or investment opportunities:
- Capital appreciation: It is the gradual rise in a property's value
- Rental Yield: It stands for annual rental income’s percentage
- Luxury Real Estate: Residences with first-rate features and design
- Pre-launch Project: Before the official market launch, the property was sold.
- Return on Investment, or ROI: The investment's profit
Abbreviations in Real Estate
Mostly in advertisements and legal paperwork following Abbreviations in Real Estate of India are found:
- RERA: Stands for Real Estate Regulatory Authority
- OC: Stands for Occupancy Certificate
- CC: Stands for Completion Certificate
- PLC: Stands for Preferential Location Charges
- BHK: Stands for Bedroom, Hall, Kitchen
Common Acronyms for Real Estate
Some commonly used acronyms in the real estate of India are as follow:
- RE: An acronym for real estate
- CRE: Stands for Commercial Real Estate
- REIT: Stands for Real Estate Investment Trust
- LTV: Stands for Loan to Value
- NOC: Stands for No Objection Certificate
How Real Estate Terms Impact Real Estate Projects
A lack of understanding of real estate terminology India can lead to:
- Paying more due to super built-up area confusion
- Delays in possession
- Legal ownership issues
- Poor investment decisions
Based on transparency and long-term value, buyers can choose appropriate real estate projects. Also by taking assistance from real estate consultants buyers can make their buying journey a cakewalk.
