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Calculation of per sqft Cost

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Calculation of per sqft Cost

Last updated: April 17 2015
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  • Calculation of per sqft Cost

    No ullu banaying !! Calculation of per sqft cost

    1 Acre = 43560 sqft and Suppose 1 acre land cost = 1 crore

    Suppose FAR (Floor Area Ratio0) = 2.5 so builder can construction 2.5 acres vertically but usually builder is very kind and “wasted / donated” 40% of that for amenities for the welfare of buyers !! So the total chargeable area = 1.5 acres or 65340 sqft.

    Thus Effective rate per sqft is Rs 10000000 / (1.5*43560) = 10000000 / 65340 = Rs 155 (rounding off)
    Now add registry + other charges = Rs 20 per sqft lump sum
    Thus a thumb rule is created that “For every crore amount in a acre land will cost Rs 175 (155+20) as land cost !! Don’t get surprised something is still left

    Builder argue that huge amount is paid to authorities officials and political parties …Let’s consider his point also and take Rs 1 crore per acre means add Rs 155 in total ….so the total land cost comes to Rs 330 (175+155) per sqft only!!

    Master plan delhi-2021 example

    Suppose land is purchased ar Rs 4 crores per acre with 2.5 FAR and as per previous calculation, per sqft land cost comes to ((4*175)+155)= Rs 755 only !! Since this land cost is to be paid in advance and with this money land will be purchased by societies / builders means there is no financial burden for builder and in one way land cost is almost fixed Rs 755….Everyone must be agree “Business is Profit” so let’s add builder margin 145 per sqft and the total land cost is FREEZED to Rs 1000 per sqft only (Pls keep in mind that land is purchased below 2 crores / acre rate also so calculate accordingly.

    Construction cost is approx Rs 1600 per sqft so total flat cost comes to Rs 1000+1600 = Rs 2600 including profit ….but how much is being asked for booking?? Few are asking Rs 4000 + ??? Never forget the kindness of builder for that 40% area as above
    Last edited June 29 2014, 01:58 AM.
  • #2

    #2

    Re : Calculation of per sqft Cost

    Wow!! thanks

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    • #3

      #3

      Re : Calculation of per sqft Cost

      Originally posted by Amitflyhigh View Post
      Wow!! thanks
      Thanks Amit !! I am the happiest person today ....at least one person recognized the calculation

      Comment

      • #4

        #4

        Re : Calculation of per sqft Cost

        I believe FAR in Delhi is 4

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        • #5

          #5

          Re : Calculation of per sqft Cost

          Originally posted by t_yash View Post
          I believe FAR in Delhi is 4
          Thanks for this valuable info !! since I was not confident so I assumed lowest i.e. 2.5....If FAR is 4 then per sqft price will be further drop down !!!

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          • #6

            #6

            Re : Calculation of per sqft Cost

            Amazing....
            Thanks for this info

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            • #7

              #7

              Re : Calculation of per sqft Cost

              A group housing site 5.5 acres was sold for 98 crore in mohali itself....I wonder what wud be land cost in NCR....by ur calculation... Far of 2 in mohali....it will be 2045psf......n no leave aside 40% considered yet.....add to that appox 20% for registration,environmental and other clearances,bribe etc....costs the builder approx 2450 psf...... Cost of construction m amenities n all other expenses 2200 psf at least...so total cost to builder 4650 psf......n d builder launched it in 6000 psf in CLP......Builder margin so is 1350 psf....which for a 1500sqft apartment will be 20 lakh........or 22% which is OK....afterall its business.

              Sent from my LT26i using Indian Real Estate Forum mobile app

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              • #8

                #8

                Re : Calculation of per sqft Cost

                Btw even construction of amenities is charged......dats how super area is calculated.....builder never donate

                Sent from my LT26i using Indian Real Estate Forum mobile app

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                • #9

                  #9

                  Re : Calculation of per sqft Cost

                  I have invested in IOC OWS society in L zone. and as per your cal, they are charging exactly what you have mentioned, so i'm happy

                  Comment

                  • #10

                    #10

                    Re : Calculation of per sqft Cost

                    Originally posted by Nasir88 View Post
                    I have invested in IOC OWS society in L zone. and as per your cal, they are charging exactly what you have mentioned, so i'm happy
                    boss money is urs and choice is urs

                    high risk high gain
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