Envision a spacious Olympic pool, a multi-level clubhouse, courts, and gardens. Once seen as a hillside retreat, such luxury has become normal for many. In busy cities, Indian homeowners find serene, luxurious escapes in lavish complexes. This elegance comes at a cost: buyers pay a premium for open spaces but get less living space.
Lavish Existence, Limited Room
When you buy an apartment, you pay not only for the livable area but also a portion for shared spaces, called the ‘loading factor’. This reflects your proportional share of common areas added to the carpet area (usable space) and included in the price. It highlights the difference between the super built-up area and the carpet area. The built-up area includes walls and ducts, while the super built-up area adds your share of common spaces like staircases, lift shafts, lobbies, corridors, parking, and amenities.
Recent findings show luxury homebuyers pay hefty premiums. The average loading factor in India’s top markets rose from 31% in 2019 to 40% in early 2025, says a real estate consultancy. This means 60% of the price is for the home interior and 40% for common areas and amenities, up from the previous 25-30%.
Homebuyers seek lifestyles with large lounges, cafes, gyms, rooftops, and utility areas, influencing trends. Experts link the loading factor to amenities, with developers charging extra fees. Larger projects tend to have higher loading due to the presence of more amenities and shared spaces.
Furthermore, regulatory and safety guidelines, such as fire exits, utility areas, and larger elevators, enhance the common spaces, leading to an increase in the load, as noted by Rahul Purohit, Cofounder & Chief Business Officer of Square Yards.
As per a published report, the Mumbai Metropolitan Region leads the top seven cities with a loading of 43% during January-March 2025. Over the last seven years, Bengaluru has experienced the highest increase in average loading, rising from 30% in 2019 to 41% in January-March 2025. The report points out that this matches the trend of developers including more modern amenities to fulfil the higher lifestyle needs in the IT hub. On the contrary, Chennai experiences the smallest average loading growth of 36% during the January-March 2025 period. This reflects a city-specific demand pattern where buyers prioritise spending on usable home space over common areas. Chennai had an average loading percentage of 30% in 2019.
Balancing Performance
When considering projects with many amenities, homebuyers prioritise location, which reflects the home’s value and function. The loading ratio shows the space you get for your money. A higher ratio means paying more per sq ft. For example, two units, each 1,000 sq ft and costing ₹75 lakh, have loading factors of 25% and 33%, resulting in 250 sq ft and 330 sq ft of livable space. This trade-off requires careful evaluation.
Personal preferences can vary, so buyers need to assess offers accordingly.
“For buyers who value access to curated amenities and community experiences, the premium associated with such projects can be well worth it, even if it means a slightly smaller functional space,” Purohit states. On the other hand, for those who prioritise maximum carpet space and functional layouts over lifestyle options, selecting a project with minimal loading and fewer amenities may be a better choice, he adds.
Loading may impact the value of your house when you sell it. It can either make the property more appealing or less so, based on what buyers prefer in the resale market, experts say.
“On one hand, projects with premium amenities and lifestyle-driven features often appeal to a certain segment of buyers looking for comfort, convenience, and community living. However, if the functional space feels significantly compromised, it could limit the resale pool or affect price appreciation over time,” Purohit claims.
Grasping Clarity Regarding the Loading Factor
Homebuyers need clear info on the loading factor and living area. The concept of ‘loading’ is often unclear, as developers usually omit it in sales brochures, and regulations do not require disclosure. While the Real Estate Act, 2016, mandates the indication of total carpet area, not all states enforce this, leaving buyers unaware of the actual value.
Moreover, there is no existing law that limits the loading factor in residential housing. The developers have the final say, justifying the higher loading with the amenities they offer. In the absence of rules, experts highlight that some developers charge 50% or more for their projects.
Buyers must take it upon themselves to be watchful. Here’s what you can do:
- Verify with your builder the specific carpet area for which you are being charged and compare it to the super built-up area.
- Examine the carpet-to-square-footage ratios of comparable projects, analyse the floor plans in detail, and consult an architect or real estate advisor if necessary. “Comparing loading percentages across projects can highlight anomalies and offer a strong basis for negotiation, especially if the loading appears excessive,” Purohit states.
Read more through the links below to uncover the key trends and market leaders driving this growth:
The Economic Times: http://bit.ly/3Iahlox
Published Date: 26 June, 2025
