What is the loading factor in apartments? 

October 7, 2022 . Home Buyer's Guide . 10 min read
Loading factor

The majority of purchasers in today’s market do extensive research before shortlisting potential apartments. Before reserving a flat, several factors, including the popularity of the builder as well as the building’s geographical location and the facilities it offers, are taken into account. The majority of investors educate themselves on the terminology of the real estate industry so that they may make educated decisions. The details may be easily overlooked, though. Even if a buyer is familiar with various real estate terminologies, it doesn’t guarantee they’ll understand concepts like the loading factor or how to calculate it properly. Therefore, in this article, we will go over all there is to know about the loading factor, including how to calculate it. But before we get into it, let’s understand a few crucial terminologies. 

Conventional real estate terms and their meanings 

1. Carpet area 

Measured from the insides of the walls, this is the usable space. The carpet area in an apartment would include the balcony space. Terrace sections often get a deduction of 30–50% when calculating carpet square footage. Each developer has their own formula for calculating the ratio of carpet to marketable square footage. A larger ratio is preferable. 

2. Built-up area 

This denotes the whole floor space of a flat. It encompasses the space occupied by the carpet, as well as the region that is hidden by the wall thickness and ductwork. In the majority of instances, it is around 10-15 percent higher than that of the apartment’s carpet area. 

3. Super built-up area 

As it relates to apartment buildings, this is also the “saleable” area. It is determined by multiplying the total square footage of a structure by a markup for public areas like lobbies, hallways, pump facilities, electrical rooms, etc., as well as for private areas like bedrooms and bathrooms. All of the facilities are designed for everyone’s use (with the exception of parking spots) but aren’t individually priced for each buyer. 

4. Loading 

The term “loading” refers to the difference that exists between the carpet area and the super built-up area. 

What is the loading factor? 

The Super built-up area minus the carpet area is the loading factor for flats. Every apartment has a certain amount of shared space, which is calculated by multiplying the carpet area by a certain ratio. It’s equal to the remainder when you split the super built-up area by the carpeted area.  

Home buyers should be aware that the reason developers charge loading is to recoup the costs of amenities like lobbies, service rooms, elevators, parking, and terrace. Builders were previously exempt from disclosing the difference between the super-built area and the carpet area, but this changed with the passage of the Real Estate Act, 2016, which ensures that buyers have access to this information and can make educated decisions based on it. 

How do you determine the loading factor? 

The loading factor may be determined with the use of a simple formula: 

Carpet area × (1-loading factor) = Super Built-up area 

For instance, let’s say that an apartment features a super built-up area of 1,600 square feet and a carpet area of 1,300 square feet.  

Now, 1,300 × (1-loading factor) = 1,600 

1-loading factor = 1,600/1,300 

Loading factor=1.23-1 

So, the result is 0.23 or 23 per cent. 

When you see 1.23, it indicates that the developer has applied a loading factor of 23 per cent to the carpet area. 

What is the optimal loading factor for a residence? 

Ideally, the loading factor should be under 30 per cent. If the price is over that, the customer will get less carpet area. When compared to larger projects with more features, smaller ones are easier on the load balance.  

Loading factors in premium developments may be as high as 60 percent due to the higher quality of the builder-provided facilities in comparison to those in mid-range projects. The government-allocated plots have zero loading factor.  

Loading factor break-up across cities 

The loading factor has a direct relationship to the number and quality of the facilities that are offered by the developer. As a result, it is not consistent from project to project and city to city. The loading factor that is typical in India’s four most important metro areas is broken down in the following table for your perusal. 

City Loading factor 
Bangalore 20-30% 
Chennai 25-30% 
Delhi NCR 30-40% 
Mumbai Metropolitan Region 40-50% 

There is no hard and fast rule dictating the loading factor. Thus it is up to the developer to justify excessive loading fees in light of the amenities provided. Many purchasers are forced to settle for a smaller unit at a greater price. However, they need to weigh the benefits against the costs. The high loading fees and house purchase costs are sometimes justified by the greater amenities and profits associated with smaller residences. 


When buying a home, it’s crucial to consider the Loading Factor. In case you are relocating from one location to another, it is important to research it in advance. The loading factor may be determined using the formula presented in the aforementioned paragraphs. Remember to study other relevant concepts before attempting the loading factor calculation. 

It is time for you to start searching for your ideal home now that you are familiar with the formula for calculating the loading factor. By providing interest-free finance for half your down payment, HomeCapital makes it simpler to buy the home of your dreams. 

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