The quoted base price is usually the smallest part of what you hand over. Floor rise, preferential location charges, parking, clubhouse and infrastructure charges, legal fees, GST, stamp duty, registration, the maintenance advance, the corpus fund and loan fees all sit on top, and most of them are payable in cash rather than from your loan.
Key facts
- Under RERA 2016 a flat must be sold and advertised on carpet area, so a quote on super built-up area should always be accompanied by the carpet figure.
- GST applies to the sale of an under-construction unit. A completed unit for which the occupancy certificate has been issued is not treated as a supply, which is why no GST is charged on it.
- GST rates for residential property are set by the GST Council and have changed more than once since 2017. Confirm the rate in force with the CBIC or your chartered accountant before you budget.
- Stamp duty and the registration fee are state charges, set by each state and revised from time to time. Duty is charged on the higher of the consideration and the state's guidance or circle rate.
- Registration of a sale deed is compulsory under the Registration Act 1908.
- The Supreme Court has held that stilt parking spaces in an apartment building are not independently saleable flats and form part of the common areas, so what a developer can charge for is narrower than most price sheets suggest.
- The maintenance advance and the corpus or sinking fund are separate charges. The advance funds running costs for a stated period; the corpus is meant to sit untouched for major future repairs.
- Interest paid during construction, while you are also paying rent, is a real cost of buying under-construction and almost never appears on a cost sheet.
One example runs through this whole page. It is illustrative arithmetic, not a market price: a flat of 1,150 sq ft super built-up area, with a carpet area of 800 sq ft, quoted at Rs 6,000 per square foot, on the eighth floor, with a corner and park-facing position. Substitute your own figures as you read. The step-by-step buying process sits in how to buy a home in India.
What is the base price, and what is it a price of?
The base price is the rate per square foot multiplied by an area. The area is the question. Most price sheets still apply the rate to super built-up area, which includes your share of lobbies, staircases, lift wells, corridors and often the clubhouse. In our example, 1,150 sq ft at Rs 6,000 gives a base price of Rs 69,00,000.
Divide that by the carpet area instead and the real rate appears: Rs 69,00,000 over 800 sq ft is Rs 8,625 per square foot of floor you can actually stand on. That is the number to compare between projects, and it is the number almost nobody quotes. Do the division before you do anything else, because a lower headline rate on a heavily loaded flat is often the more expensive deal.
What are floor rise and preferential location charges?
Floor rise is a premium for height, charged per square foot per floor above a stated base floor, on the argument that higher flats have better light, air and view. It is a pricing decision, not a cost the developer incurs, which means it is negotiable. In our example the sheet charges Rs 30 per square foot for each floor above the third. The flat is on the eighth, so five floors of rise at Rs 30 gives Rs 150 per square foot, and across 1,150 sq ft that is Rs 1,72,500.
Preferential location charges, usually shortened to PLC, are a premium for position within the project: corner units, park facing, pool facing, a quieter side, a shorter walk to the lift. These stack. A corner flat facing the park can attract two PLCs on the same sheet. Our example carries Rs 100 per square foot of PLC, which is Rs 1,15,000.
Both charges are where negotiation actually works, because neither reflects a construction cost and both protect the headline rate. A developer who will not move on the base rate will often waive floor rise to close a sale at the end of a quarter. Ask for the waiver in the allotment letter, not in conversation.
Do I have to pay for car parking?
This is the most misunderstood line on an Indian cost sheet, and the law is narrower than the practice. The Supreme Court, in a case arising under the Maharashtra Ownership Flats Act, held that stilt parking spaces in an apartment building are not flats and cannot be sold by the promoter as independent units: they are part of the common areas, which belong collectively to the flat purchasers. The reasoning has been widely applied, and the broad position is that a developer cannot sell you a slice of the common areas.
RERA 2016 then drew a line of its own by defining a garage, a space with a roof and walls, separately from open or uncovered parking. The practical upshot is that a genuine enclosed garage may be a saleable unit in some states, while open and stilt parking generally remains common area that the association allots. What developers commonly charge for is an allotted right to use a space, which is a different thing from ownership.
So ask the question plainly: is this a garage being sold to me, or a fee for the right to use a common-area space, and what happens to that right when the association takes over the common areas? Get the answer in the agreement. Our example carries one covered space at Rs 4,00,000, which is what a price sheet in a metro project might show. It is also a line worth negotiating hard, particularly for a second space.
What are clubhouse, amenity and infrastructure charges?
A clubhouse or amenity charge is a one-time contribution towards the gym, pool, hall and sports facilities. It is usually a lump sum per flat or a rate per square foot. It funds capital cost only. Running the clubhouse is paid for separately through monthly maintenance, which catches people out: the one-time charge does not buy you free use of a pool for life. Our example shows Rs 2,00,000.
Infrastructure and development charges cover connections and in-project services: the electrical substation and transformer, water and sewage lines, the sewage treatment plant, roads inside the compound, the generator, and deposits paid to the utility companies. Some of these are genuine pass-through costs with receipts behind them. Others are a second margin dressed as a cost. Ask which deposits are refundable, who holds them, and whether the amounts are supported by utility demand notes. Our example shows Rs 120 per square foot, or Rs 1,38,000.
Then there is legal and documentation: the developer's charge for drafting the agreement and the sale deed, and any administrative fee for the transfer. Our example shows Rs 25,000. Your own lawyer's fee for reading the title is separate, and worth paying regardless.
What does the developer's total come to?
| Charge | Basis | Amount (Rs) |
|---|---|---|
| Base price | 1,150 sq ft at Rs 6,000 per sq ft | 69,00,000 |
| Floor rise | 5 floors above the base floor at Rs 30 per sq ft per floor | 1,72,500 |
| Preferential location charge | Corner and park facing, Rs 100 per sq ft | 1,15,000 |
| Covered car parking | One space, lump sum | 4,00,000 |
| Clubhouse and amenities | One-time, per flat | 2,00,000 |
| Infrastructure and development | Rs 120 per sq ft | 1,38,000 |
| Legal and documentation | Lump sum | 25,000 |
| Total payable to the developer | Before taxes and statutory charges | 79,50,500 |
| Effective rate on super built-up area | 79,50,500 over 1,150 sq ft | 6,913 per sq ft |
| Effective rate on carpet area | 79,50,500 over 800 sq ft | 9,938 per sq ft |
The headline was Rs 6,000 a square foot. Before a single rupee of tax, the developer's own sheet has reached Rs 6,913 per square foot of super built-up area and Rs 9,938 per square foot of carpet. That is a gap of nearly sixty-six per cent between the advertised rate and the rate you pay for usable floor, and nothing dishonest has happened: every line is disclosed. They are simply disclosed on separate pages.
How much GST will I pay?
GST is the charge that most changes the arithmetic, and it is also the one where a wrong number in an article does real damage, so take the mechanism from here and the rate from the authority.
The mechanism is this. The sale of an under-construction unit is treated as a supply and attracts GST. The sale of a completed unit for which the occupancy certificate has already been issued is not treated as a supply of goods or services, and GST is not charged on it. That single distinction is why a ready flat with its occupancy certificate in hand carries no GST while an identical flat in the tower next door, still under construction, does. It is also the strongest financial argument for buying ready, and it rarely appears in a comparison.
Rates for residential property are set by the GST Council. They differ between affordable housing and other residential housing, they have been revised more than once since 2017, and the treatment of input tax credit changed with them. For that reason this page does not quote a percentage. Confirm the rate in force with the CBIC, your chartered accountant or the developer's tax invoice before you commit to a budget.
Two practical points. First, GST is generally charged on the value of the composite supply, which means lines like floor rise and PLC usually sit inside the taxable value rather than outside it. The treatment of separately billed amenity and infrastructure charges has been argued about, so ask the developer to show you exactly which lines GST is being applied to and at what rate. Second, GST is not a government fee the developer merely collects at a rate of its choosing. If the rate on your invoice does not match the rate in force for your category of housing, ask for the reason in writing.
What will stamp duty and registration cost?
Stamp duty and the registration fee are state charges, not central ones. Each state sets its own rate, revises it from time to time, and several states charge a lower rate where the buyer is a woman. Some cities add a local body or metro surcharge on top. There is no single national figure, which is why you should take the current rate from your state's registration department or from our stamp duty page rather than from any article.
Two mechanics matter more than the rate. Duty is charged on the higher of the stated consideration and the state's guidance or circle rate for that location, so agreeing a price below the guidance value does not reduce the duty. And duty is payable in cash: lenders generally fund the property, not the duty, so this is money you need outside the loan. On our example, with a developer total of Rs 79,50,500, every percentage point of duty is roughly Rs 79,500, which tells you how much the rate matters without quoting one.
Registration of the sale deed is compulsory under the Registration Act 1908, and an unregistered deed does not transfer title. Budget separately for the registration fee, which is a different charge from stamp duty, and for small costs on the day: the deed writer, scanning and e-stamping fees, and the sub-registrar's office charges.
What do I pay at possession?
Two charges arrive at handover and both are frequently missing from the cost sheet shown at booking.
The maintenance advance is money collected upfront to run the building for a stated period, usually a year or two, until the owners' association takes over billing. It is charged at a rate per square foot per month. On our example, at Rs 3.50 per square foot for twelve months, that is Rs 48,300. Ask what the rate covers, whether it includes the clubhouse and the sewage treatment plant, and what happens to any unspent balance when the association is formed.
The corpus fund, also called the sinking fund, is different. It is a one-time contribution meant to be invested and left alone, so that in fifteen years the society can replace lifts, repaint the towers or rewaterproof the terrace without a sudden levy on every owner. On our example, at Rs 50 per square foot, that is Rs 57,500. Because it is meant to be untouched, two things matter: that it is actually transferred to the association's account rather than retained by the developer, and that it is accounted for separately from the maintenance advance. Ask, in writing, when the corpus will be handed over and in whose name it will be held.
| Charge | What it is for | Basis | Amount (Rs) |
|---|---|---|---|
| Maintenance advance | Running the building until the association takes over | Rs 3.50 per sq ft per month for 12 months | 48,300 |
| Corpus or sinking fund | Major repairs and replacement, years ahead | Rs 50 per sq ft, one time | 57,500 |
| Utility deposits and meter charges | Electricity and water connections in your name | Set by the utility | Confirm locally |
| Share money and association joining | Membership of the society, where applicable | Set by the association | Usually small |
| Fit-out and move-in deposit | Refundable security against damage during interiors | Set by the developer or association | Refundable, confirm terms |
What does the loan itself cost?
A home loan has costs beyond interest, and they are charged at sanction, when you are least inclined to argue. Expect a processing fee, usually a small percentage of the sanctioned amount and often subject to a cap, along with legal and technical valuation charges, a documentation or administrative fee, CERSAI charges for registering the lender's security interest, and stamp duty on the loan agreement in some states. Lenders also frequently offer a bundled insurance policy whose premium is added to the loan, which quietly increases both the principal and the interest you pay on it.
None of these are standard across lenders, and the processing fee in particular is routinely waived or halved in a competitive quarter. Ask each lender for a written list of every charge payable before first disbursement, then compare the lists rather than the advertised rates. Our guide to home loans in India covers how the interest rate itself is set and repriced.
What does interest during construction cost when I am also paying rent?
This is the largest cost nobody puts on a cost sheet. When you buy under construction with a construction-linked payment plan, the lender disburses in tranches and you pay interest on the drawn amount from the first tranche onwards. That interest builds no equity: the principal is untouched. Meanwhile you are still paying rent, because the flat does not exist yet.
The arithmetic below uses a rate of 9 per cent purely to show the shape of the calculation. Do not take it as a current rate. Use whatever rate your own sanction letter carries, and run the figures in our EMI calculator.
| Year | Average amount disbursed (Rs) | Interest for the year (Rs) | Rent paid (Rs) | Total for the year (Rs) |
|---|---|---|---|---|
| 1 | 15,00,000 | 1,35,000 | 3,00,000 | 4,35,000 |
| 2 | 35,00,000 | 3,15,000 | 3,00,000 | 6,15,000 |
| 3 | 50,00,000 | 4,50,000 | 3,00,000 | 7,50,000 |
| Total | — | 9,00,000 | 9,00,000 | 18,00,000 |
Eighteen lakh rupees has left your account over three years and your loan principal has not reduced by a rupee. That is the number to set against the discount an under-construction flat offers over a ready one, and it is why a delay of even a year is expensive in a way the brochure never shows. If the project slips, each extra year adds another full year of both interest and rent. Our rent versus buy comparison handles the same trade-off from the other direction.
What will the flat cost me every year after possession?
Owning is not finished when the buying stops. A flat has an annual running cost that behaves more like a subscription, and it rises faster than most buyers expect because maintenance rates are revised by the association, not fixed by the developer.
| Cost | Who sets it | How it behaves | Illustrative annual (Rs) |
|---|---|---|---|
| Maintenance charge | Owners' association, after the developer's initial period | Rate per sq ft per month; revised upward as the building ages | 48,300 |
| Property tax | Your municipal corporation | Based on the corporation's own valuation method; check its portal | Confirm locally |
| Sinking fund contribution | Owners' association | Ongoing top-up of the corpus, where the association levies one | Set by the association |
| Home insurance | Insurer | Structure and contents; premium depends on cover, not on the flat's price | Quote per cover |
| Repairs and repainting provision | You | Nothing for a few years, then a lump; budget a provision each year | Set your own |
| Water tanker top-up | Association | Only in societies dependent on borewells or tankers; seasonal | Ask residents |
| Clubhouse or facility levy | Association | Separate from maintenance in some societies | Ask before buying |
Two of these deserve attention before you buy rather than after. Ask existing residents in the developer's earlier projects what the maintenance rate was at handover and what it is now, because the gap tells you how honestly the original rate was set. And ask what the society pays for water: a project with no assured municipal supply can carry a tanker bill that dwarfs every other line. If you are buying to let, net the whole of this table off your rent before you call anything a yield, and remember that gains on a future sale are taxed, which our capital gains calculator handles.
How do I get an all-inclusive cost sheet, and what if the builder refuses?
Ask for one document, in writing, on the developer's letterhead, containing every one of the following: the carpet area and the super built-up area; the base rate and which area it applies to; floor rise; each PLC separately; parking, with a statement of what is being sold or allotted; clubhouse and amenity charges; infrastructure and development charges with a note on which deposits are refundable; legal and documentation charges; the GST rate being applied and the lines it is applied to; stamp duty and registration, even if only as an estimate; the maintenance advance, its rate and the period it covers; the corpus fund and when it transfers to the association; and the payment schedule tied to construction milestones. Ask for one final line: total cost to the buyer, all inclusive.
Send the request by email so there is a record, and ask for the reply by email. If the sales team gives you a verbal figure, write it back to them in an email and ask them to confirm it. That email is evidence later.
If the developer refuses, or keeps producing a sheet with a blank line and the words at actuals, treat it as information about the developer rather than a procedural hitch. At actuals means the amount is not yet decided and you have agreed to pay it. Push for a cap, in the agreement, on any charge expressed that way.
Where a refusal holds, you still have three moves. Compare the developer's registered agreement for an earlier buyer in the same project, which some buyers will share and which shows how the charges were actually structured. Ask your own lawyer to list the charges from the draft agreement, since anything enforceable must appear there. And make your booking conditional in writing on the final cost not exceeding a stated figure. A developer who will not state the total is telling you something, and a buyer who pays anyway has agreed to find out later.
Frequently asked questions
What is the difference between the base price and the total cost of a flat?
The base price is only the rate per square foot multiplied by an area. The total cost adds floor rise, preferential location charges, parking, clubhouse and infrastructure charges, legal fees, GST, stamp duty, registration, the maintenance advance, the corpus fund and loan fees. On a typical sheet the total is substantially higher than the base price.
Is GST payable on a ready-to-move flat?
No. GST applies to the sale of an under-construction unit, but a completed unit for which the occupancy certificate has already been issued is not treated as a supply of goods or services, so no GST is charged. That difference is one of the strongest financial arguments for buying ready rather than under construction.
What GST rate applies to an under-construction flat?
Rates for residential property are set by the GST Council, differ between affordable and other residential housing, and have been revised more than once since 2017. Because of that, confirm the rate in force with the CBIC or your chartered accountant, and ask the developer to show which lines on the sheet the rate is being applied to.
Can a builder charge me for stilt or open parking?
The Supreme Court has held that stilt parking spaces in an apartment building are not independently saleable flats and form part of the common areas belonging to the purchasers collectively. RERA 2016 separately defines a garage, which has a roof and walls, from open parking. Ask in writing whether you are buying a garage or paying for a right to use a common-area space.
What is floor rise, and is it negotiable?
Floor rise is a premium charged per square foot for each floor above a stated base floor, on the argument that higher flats have better light and view. It reflects a pricing decision rather than a construction cost, which is why it is one of the most negotiable lines on a sheet. Get any waiver written into the allotment letter.
What are preferential location charges?
A premium for a flat's position within the project: corner, park facing, pool facing, or closer to the lift. They stack, so one flat can attract two or three on the same sheet. Like floor rise, they are a pricing decision and can usually be negotiated down more easily than the base rate.
Is the clubhouse charge the same as maintenance?
No. The clubhouse or amenity charge is a one-time contribution towards building the facilities. Running them is paid for monthly through maintenance, which the owners' association bills once it takes over. Paying the one-time charge does not give you free use of the facilities afterwards.
What is a corpus fund and why is it separate from the maintenance advance?
The maintenance advance pays running costs for a stated period after handover. The corpus or sinking fund is a one-time contribution meant to be invested and left untouched, so that lifts, waterproofing and external paint can be replaced years later without a sudden levy. Ask when the corpus transfers to the association and in whose name it is held.
Does the home loan cover stamp duty and registration?
Generally not. Lenders fund the property, so stamp duty, registration, GST in many cases, the maintenance advance and the corpus fund have to come from your own cash. Work out that cash requirement before you fix a budget, because it is the figure that most often derails a first purchase.
What does it cost to pay EMI and rent at the same time?
During construction the lender disburses in tranches and you pay interest on the drawn amount, which reduces no principal, while still paying rent. Over a three-year build that double outgo can run to several lakh rupees with nothing to show for it, and every year of delay adds another full year of both.
What are the recurring costs after I take possession?
Monthly maintenance set by the owners' association, property tax set by your municipal corporation, home insurance, a provision for repairs and repainting, any sinking fund top-up, and in some societies a water tanker bill and a separate facility levy. Ask residents of the developer's older projects what their maintenance rate is now.
What should I do if a builder refuses to give an all-inclusive cost sheet?
Treat the refusal as information about the developer. Ask your lawyer to list every charge from the draft agreement, since anything enforceable must appear there, insist on a cap in the agreement for any line written as at actuals, and make your booking conditional in writing on the final cost not exceeding a stated figure.
Run your own numbers
PropIQ's calculators are free and need no login: EMI and affordability, stamp duty across states, rent versus buy, rental yield and capital gains.
Open the tools →