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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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  • #21

    #21

    Re : Calculation of per sqft Cost

    @sunilkongo , is L-zone on mars or on moon recently someone posted that Krisha Height - Colors Housing Society in L-zone is offering 2/3/4 bhk flats @2800/sqft , mind it they might not bearing any cost on their own means no charity .....that's the real rate !!
    pls check the link http://www.indianrealestateforum.com...9-a-87642.html

    btw in my calculation i have taken FAR as 2.5 then why you are misquoting it 4

    Comment

    • #22

      #22

      Re : Calculation of per sqft Cost

      Originally posted by sunilcongo View Post
      Dear All,
      It is nice to see some people trying to enlighten the customers how Builders fool the customers by inflating their cost price to justify the inflated costs being billed to the customers. But I must say Derek111 is 50% off mark i.e. to say things are not that absurd as he makes everyone believe. Before I proceed further I must break certain myths associated with Land pricing in "L" zone.

      Myth No.1 : FAR 4.0 Please read the DDA's MPD 2021. It clearly says the developer can use FAR 4.0 in authorized coverage area, which is 55% of Net residential land. The Net residential land itself is 48% of gross land. For example if you buy 5.0 acres of land and handover to DDA. You will get 2.4 acres back. Now within this permissible coverage area is 1.32 acres(2.4x.55). Applying FAR of 4.0 you can build 5.28 acres. So gentlemen the effective FAR is actually ONE against the procured RAW land.

      Myth No.2 : Total Flat Cost Gentlemen the total cost of Flat is not mere arithmetical addition of Land cost and construction cost. How about Internal Development & External Development charges. Who is going to pay for all the roads, electricity, drainage and other infrastructure. My take is it will cost at least Rs 500/- per sft towards IDC & EDC. EDC will go to DDA and IDC to the builder. Also depending upon quality of construction and various amenities the cost can vary by Rs 500/- per sft. Plus you are also required to construct 50 EWS Flats (for every 5 acres Raw land) and handover to DDA at Rs 2000/-sft, which translates to another Rs 150/- burden on every member.

      Real Cost of Land. With effective FAR of ONE for procured RAW land, the sft cost works out Rs 200/- per crore. Today there is no land selling below Rs 4.0 crore per acre in "L" zone. You add stamp duty, registration and other expenses and it will go up by another 60-70 lakhs. I can safely say no society in "L" can justify a cost below Rs 1000/- sft towards cost of the land. Please remember these calculations are for BuildUp Area. Thus a builder offering Rs 1200/- as land cost with BuildUp area costs same as another chap offering Rs 1000/- land cost but with super area calculations.

      CAUTION. The real caution to be exercised by everyone in "L" zone is the safety of your capital!! It may take anything upto 10 years before you see your dream home fully ready here!! You should be sure that the society of which you are a member can be trusted with funds and crores worth of land in it's possession. Also the positioning of the land may make a difference of 5-8 years in the project coming to completion. As far as the land cost goes. At least in "L" zone there is not much ULLU Baneying!!!

      Regards!!!!
      That's a wrong way of far calculation

      Sent from my HTC Desire 820 dual sim using Indian Real Estate Forum mobile app

      Comment

      • #23

        #23

        Re : Calculation of per sqft Cost

        Originally posted by derek111 View Post
        Instead of questioning others calculation , you pls post the real per sqft rate calculation in L-zone
        When 02 calculations will be on forum then it will be easy for forum mates to decide which one is authentic !!
        sunilcongo and derek111 calculation differ on one question
        " FAR is applied on how much portion of land "

        sunilcongo says 55% of (48% of land purchased) which comes out 26.40%
        derek11 says 100% of land purchased.

        for 4cr per acre
        sunicongo method comes out as 40000000/43560 = 918.2736 psf
        derek111 method comes out as 40000000/43560/4 = 229.5684 psf

        To see which one is true, one should look at DDA notifications and provide referecnce to same.

        I agree with sunlcongo for the psf calcuations.

        anyone thinking land pooling societies on the tone of builders and having same expectations like psf for fully constructed flat are at wrong place.

        Comment

        • #24

          #24

          Re : Calculation of per sqft Cost

          Dear All,
          It is not my personal calculation. I am merely stating what has been given clearly by DDA in it's MPD 2021 guidelines. Please read the last chapter (No.19) on Land Pooling policy. For example the table 19.1 (page 214) clearly shows that if you surrender 2.0 hectares of land, you get 0.96 hectares back and on which you can have 2.17 hectares of built up area. Also the next paragraph below clearly states that you are permitted a FAR of 4.00 on 55% of returned residential land.

          So simple thumb rule for effective cost of raw land is Rs 200/- per sft for every one crore per acre.

          Regards!!!!

          Comment

          • #25

            #25

            Re : Calculation of per sqft Cost

            @safeda the percentage term 48% as mr sunilcongo is telling is not applicable to every size plot and per sqft calculation will differ for smaller & bigger size plots and in 02 different category (it varies 40-60%)
            category-1 builder will get permission for 53% residential
            category-2 builder will get permission for 43% residential....now should I start blaming sunilkongo why he has used general term 43% instead of specifying 43% & 53% (pls read with own the real guideline point 19.2 taken from most authentic site means DDA http://dda.org.in/tendernotices_docs...ITE_290114.pdf

            safeda sir ths thread was written "in general" without covering any specific zone because purpose was just to show the difference between real price & market price to make people aware and if per sqft cost is below 3000 then what's the logic to ask Rs 4000 psf rate....no 02 areas have everything common in calculation.

            I took masterplan-2021 as example because that is the latest one and is in attention to everyone and now calculation is very much open as per the plot size and I request you and sunilkongo to take the lead to calculate per sqft cost of category-1 & category-2 plot and share with the forum mates for their benefit !!
            Last edited March 26 2015, 11:36 PM.

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            • #26

              #26

              Re : Calculation of per sqft Cost

              @sunilkongo
              Buyer has to pay full amount i.e. land cost + construction cost and the general term is used "Per sqft cost" which covers both !!

              you may take an example of 5 acre plot exclusively for L-zone and show the calculation for 02 cases
              case-1 : For category-1 plot
              case-2 : For category-2 plot

              1-Start the calculation for raw land cost
              2-% Land retained by dda & given back to builder / society
              3-Assume FAR
              4-Now put all the % items in the calculation and share the per sqft cost and justify the higher prices which are being offered by builders......what's the problem

              Comment

              • #27

                #27

                Re : Calculation of per sqft Cost

                Guys don't confuse FAR and ground coverage.FAR applies to whole project area.Ground coverage is the maximum ground builder can cover.both are independent terms and have to be complied separately.for eg...high rise buildings use the maximum FAR but ground coverage is less than permissible.low rise buildings use more ground coverage but still may use same FAR.

                Sent from my HTC Desire 820 dual sim using Indian Real Estate Forum mobile app

                Comment

                • #28

                  #28

                  Re : Calculation of per sqft Cost

                  Confusion on FAR, Land cost & Flat cost!!!

                  Dear All,

                  I have read the relevant portions of MPD 2021 & discussed threadbare with many builders/socieites in "L" zone. As far as MPD 2021 is concerned the FAR 4 is for 55% coverage area & not for the full plot. Thus effectively it means an FAR of only 2 for the developed plot and a FAR of ONE for the raw land since the DDA returns only 48% of raw land as a developed plot. Thats what I have been saying time again that you need to apportion gross raw land cost on sft basis to every Flat. As a thumb rule, with a parcel of 5 acres of raw land, you can make 150 Flats of 1500 sft built up area!!!!!

                  Besides construction cost, the total cost of the Flat will also include EDC/IDC. SO there is no way anyone can provide a decent Flat at less than Rs 3000/- sft.

                  I have already given calculations of Case1 i.e. land parcels of 5-50 acres, in my first post on this thread. As far as Case2 i.e. land parcels bigger than 50 acres are concerned, DDA will handover 60% instead of 48% land.But gentlemen you can not count all 12% as a gain since half of it will go towards providing internal roads etc.

                  Regards!!!!

                  Comment

                  • #29

                    #29

                    Re : Calculation of per sqft Cost

                    Originally posted by derek111 View Post
                    asking ?? or as say in hindi "chutki le rahe ho"
                    anyways from my side Rs 4000 psf is toooooooo much , better anyone who agrees Rs 4000 is justified then pls come up with the logic in support !!
                    I was genuinely asking, I too think price is high (at least for now, if we look at the place). But I am sincerely hoping it will yield results as high as Dwarka giving it today to those who invested there 10-15 years ago.

                    Comment

                    • #30

                      #30

                      Re : Calculation of per sqft Cost

                      I would suggest to wait till DDA comes out with the final approval. Right now, everything is on paper and it may or may not materialize. Even if it materializes, it may change from what is still only a draft policy.

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