Cost of Home Apartment India – Basic Sale

Price explained
Cost of Home Apartment India is the list of hidden costs that you have to pay when you
buy a private builder flat in India including BSP, EDC, IDC, PLC, EEC, FFEC, IDC, EDC and
CPC. Club membership is charged extra along with car parking space. GST tax is payable.
Power back up, electric, water connection cost.

By Anil Gupta Updated 12 Mar, 19

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Cost of Home
Apartment India - Basic Sale Price And Other Costs Explained

You see an advertisement in newspaper about an apartment that the developer is selling
at INR 2500 per square feet with total advertised area 1200 square feet. You
immediately calculate the cost as 1200 * 2500 = 30 lakhs.

Wow, 30 lakhs is what you were looking for and is very well in your budget. You want to
call the developer and book the flat as soon as possible.

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But wait, this is NOT the actual cost of the apartment. There are many other un-
advertised costs which are hidden and are added over and above the advertised price.
And yes, do NOT make the mistake of underestimating these costs as they normally
make upto 20% of the advertised cost.

Here are what all the costs a builder/developer will charge you when you actually buy
the apartment/property and sign the buyer’s agreement:

Basic Sale Price (BSP)

This is actually the price which is advertised by developers and forms the main cost of
your property.

Preferential Location Charge (PLC)

Pay a higher price if you want your property at a location which is preferred by most
people. For e.g. a villa on the corner of road or a flat in first four floors of an apartment
building are generally considered preferred location. The PLC charges are normally 4%
of BSP. So, add 4% to to the total cost if you want a preferred location for yourself.

External Electrification Charges(EEC)

This is the price charged by developer to lay down wires and cables from electricity
consumption meter to the Apartment.

Fire Fighting Equipment Charges (FFEC)

This is pretty self explanatory. All projects residential or commercial are supposed to
install fire safety devices and fire fighting equipment.

Infrastructure Development Charges (IDC)

These charges are paid direct to state government by the developer for developing the
infrastructure for the project. The charges vary from state to state.

External Development Charges (EDC)

These charges are again paid direct to state government by the developer for
developing the external areas surrounding the project. The charges vary from state to
state.
Car Parking Space(CPC)
Have you ever bought parking space in India? If this is the first time you are buying an
apartment in a society, then this may come as a surprise to you. But this is a fact that
developers do sell car parking space inside the society.

There are generally two types of parking available. One is open parking and other is a
covered one (in basement). The prices for both are also different. The open parking is
cheaper than covered one. You need to purchase at least one parking with your
apartment even if you don’t have a car to park!!

Also, if you want you can buy both covered and open parking.

Club Membership
This has become a common norm these days to create a club inside a society itself for
recreational activities. Your society may or may not have this facility but if it has, it does
NOT come FREE.

You need to pay a price for it and it is NOT optional.

Power back Up Charges

Power failure may be an alien term in developed countries but India certainly needs a
good power back-up. There are charges for setting up the power back up plant inside
your society and keep your air conditioners running even when there is a power cut
from state electricity board.

Electric Connection charges

Do not be under the impression that if you have paid the EEC and power back up
charges, you are done with your electricity needs. EEC is an amount charged by
developer only to set up the infrastructure for bringing electricity to your apartment.

You will have to pay the actual application fees for installing the electricity meter and a
connection to the electricity board of your state for actually getting electricity.

Water, drainage and sewerage charges

Hmm…fed up of all the charges? How can we forget the most precious resource on
earth? You would be required to pay for water facility set up in the complex too. The
charges are paid to government and will vary according to your state.

Stamp duty and registration charges

These charges are paid to state government for registering property on your name. This
fees is charged as a percentage of the registered value of the property and varies from
state to state.

GST Tax
This is an absolute killer as far as buying a property is concerned. Government charges
you GST tax (Earlier service tax was charged) on under-construction property at the
current prevailing rate on the total cost of the apartment.

 There is ZERO GST tax on sale of complex/building and ready to move-in

flats where sale takes place after issue of completion certificate.
 GST is applicable at the rate of 18% on sale of under construction property or
ready to move-in flats where completion certificate has not been issued at the
time of sale. Card rate for such flats is 18 per cent, but effective rate is 12 per cent
after abatement of 33 per cent (cost of land).
 Affordable housing GST rate is 8%.

Cost of Home Apartment India – Basic

Sale Price And Other Costs Explained
Please note that all the charges are calculated on the basis of SUPER AREA and NOT
BUILT UP AREA. As per industry standards, the difference between super area and built-
up area is approximately 18-20%. i.e. while you pay the price for 1200 sq. ft. (super area),
the actual built up area in your apartment would be somewhat 960 Sq. Ft. (1200 – 20%
of 1200).
Example

Nature Amount (in Calculation Basis

Rs.)
BSP 30 lakh 1200 Sq. feet * 2,500
PLC 1.2 Lakh 4% of BSP. You may or may NOT opt for a PLC
location.
EEC & FFEC 60k 1200 Sq. ft * Rs. 50 per Sq. ft.
EDC & IDC 1.2 Lakh 1200 Sq. ft. * Rs. 100 per Sq. ft.
Open Car parking space 1.25 Lakh Fixed amount
Covered parking space 2 Lakh Fixed amount
Club membership 45k Fixed amount
Power back-up 30k Fixed amount
Electric Connection charges 3k Fixed amount (Approximate value)
Water, Drainage and 3k Fixed amount (Approximate value)
Sewerage
Stamp Duty and Registration 1.8 Lakh 6% of BSP. Need to be paid to government
fees

GST Tax 5.4 Lakh 18% of BSP. Need to be paid to government

Total (advertised cost) 30 Lakh
Total (Extra and hidden 14.25 lakh
costs)
Grand Total 44.26 Lakh
So, you can see yourself that the actual cost of the apartment is increased by Rs. 7 lakhs.
Hence, the real rate is Rs. 3240 per Sq. Ft. instead of Rs. 2500 per Sq. ft. as advertised by
developer.

So, you should inquire about the above mentioned charges before paying the booking
amount to avoid any surprises later. Also, if you are looking to get your dream home
financed by a bank, please do account for the costs of procuring a home loan too.
 Rs: 1449/-
1. Masonry Works

Cement:

Priya, Maha

Bricks:

Red chambered clay bricks

Fine Aggregate:

Manufactured Sand[M-sand]
Coarse Aggregate:

20mm & 40mm

Steel:

Fe 500 Steel - Arun

2. Electricals
Wires:

Asmon/Polycab
Switches:

Lisha/GM/Wonder

3. Plumbing
PVC Pipes:

Star/ISI brand
CPVC Pipes:

Ashirvad
Fittings:
Waterman

4. Tiles
Floor Tiles:

2*2 vitrified tiles of Rs: 35/-

Bathroom Tiles:

Wall & floor ceramic tile at Rs: 25/-

Kitchen Tiles:

Sadheralli Granite on slab & ceramic tile on wall upto 3ft

5. Carpentary
Main Doors:

First class teakwood doors & frames

Bedroom Doors:

Second class teakwood frame & doors

Bathroom Doors:

Plain PVC doors

Windows:

UPVC windows

6. Painting
Interior:

Asian Tractor Emulsion-2 coat

JK wall putty - 2 coat

Exterior:

Base 1 coat
Tractor Emulsion - 2 coat
 7. Staircase
Railing:

Casting Handrail(Designed)
Tiles:

Eurocon parking file/ concrete tile

8. Others/Additionals
Dr.Fixit water proofing at all water stagging places
Syntax water tank of 500litres
Parapet of 3'height
Pest control treatment at Basement
Cupboard at Bedroom & Kitchen
Basement height - 3ft from G.L

9. Extra Works At Extra Costs

Underground SUMP
Elevation nominal cost
Weathering Course
Setback filling
Overhead water tank
Septic tank
Compound wall

Rs: 1549/-
1. Masonry Works

Cement:

For RCC works= Penna/ Coromandel

For Other works= Priya/ Maha
Bricks:

Red chambered clay bricks

Fine Aggregate:

For all works=M-Sand

Coarse Aggregate:

20mm & 40mm

Steel:

TMT 500 GBR/Arun

2. Electricals
Wires:

Orbit/Polycab
Switches:

Litaski/Roma

3. Plumbing
PVC Pipes:

Star/Finolex
CPVC Pipes:

Finolex/Ashirvad
Fittings:

Metro/Waterman

4. Tiles
Floor Tiles:

2*2 vitrified tiles of Rs: 45/-

Bathroom Tiles:

Wall & floor ceramic tile at Rs: 30/-

Kitchen Tiles:

Sadheralli Granite on slab & ceramic tile on wall upto 3ft

 5. Carpentary
Main Doors:

First class teakwood doors & frames

Bedroom Doors:

Second class teakwood frame & membrane doors

Bathroom Doors:

Printed PVC doors

Windows:

Teakwood/UPVC windows

6. Painting
Interior:

JK wall putty - 2 coat,

Primer - 1 coat
Asian premium emulsion- 2 coat
Exterior:

Base 1 coat
Tractor Emulsion - 2 coat

7. Staircase
Railing:

MS Steel railing(Designed)
Tiles:

Antiskid parking file/Eurocon parking tile.

8. Others/Additionals
Dr.Fixit water proofing at all water stagging places
Syntax water tank of 1000litres
Parapet of 3'height
Pest control treatment at Basement
Cupboard at Bedroom & Kitchen
Shoe Rack - 1 Nos
Basement height - 3ft from G.L

9. Extra Works At Extra Costs

Underground SUMP
Elevation nominal cost
Weathering Course
Setback filling
Overhead water tank
Septic tank
Compound wall

Rs: 1649/-
1. Masonry Works

Cement:

For All works=Coromandel / Zuari / Dalmia

Bricks:

Red chambered clay bricks

Fine Aggregate:

For Roofs only=River Sand

For other works=M-sand
Coarse Aggregate:

20mm & 40mm

Steel:

TMT 500 GBR/ARS/Arun

 2. Electricals
Wires:

Orbit/Finolex
Switches:

Litaski/Roma

3. Plumbing
PVC Pipes:

Star/Finolex
CPVC Pipes:

Finolex/Ashirvad
Fittings:

Metro/parryware/Hindware

4. Tiles
Floor Tiles:

2*2 vitrified tiles of Rs: 55/-

Bathroom Tiles:

Wall & floor ceramic tile at Rs: 35/-

Kitchen Tiles:

Black granite on slab & ceramic tile on wall upto 3ft

5. Carpentary
Main Doors:

First class teakwood doors & frames

Bedroom Doors:

Second class teakwood frame & membrane doors

Bathroom Doors:

Digital Print PVC doors

Windows:
Teakwood/UPVC windows

6. Painting
Interior:

JK wall putty - 2 coat,

Interior wall primer - 1 coat
Asian premium emulsion- 2 coat
Exterior:

Base 1 coat
Tractor Emulsion - 2 coat

7. Staircase
Railing:

MS Steel railing(Designed)
Tiles:

Antiskid parking tile

8. Others/Additionals
Dr.Fixit water proofing at all water stagging places
Syntax water tank of 1000litres Parapet of 3'height
Pest control treatment at Basement
RCC & Brickwork Headroom
Cupboard at Bedroom & Kitchen
Shoe Rack - 1 Nos
False ceiling @ Living Room
Basement height - 3ft from G.L

9. Extra Works At Extra Costs

Underground SUMP
Elevation nominal cost
Weathering Course
Setback filling
Overhead water tank
Septic tank
Compound wall

A reasonable construction contractor will take cost of 1800 - 2400 per sqft (including all
materials) contractor rate will changes based on the brand and material on your request.

Land cost will be extra based on the city /area your are going to choose.

Percentage Cost Breakup against Budget

1. Foundation Cost - 9%

2. Structure Cost - 40%

3. Flooring Cost - 8 - 9%

4. Wall plastering and tiles Cost - 20%

5. Electrical and Plumbing Cost- 10%

6. Painting Cost - 9%

7. Wooden works Cost - 4%

The percentage of “Foundation” and 'Structure” total will be approximately 45% of the
total costing of building with 5% tolerance. The percentage cost of structure will
increases with the gradual increase in number of floors and decrease in the foundation
cost and Viseversa (I.e % of foundation cost increase for 1 store building compare to 2
floor building).

Major cost requires in interior's, decoration part which will cost 60% of budget for a
medium class range of material but will increases upon our requirement. (I.c Flooring,
Painting, Wooden works, Electrical, CP and sanitary (Plumbing) etc.).

We can make it some more reasonable by arranging the material of our own instead of
giving it to contractor in lumsum, and this will cost you around 1400 - 2000 per sqft
maximum.