Real estate terms, defined plainly.

A

Absorption rateDevelopment & planning

The speed at which real estate inventory sells in a given market or project, usually expressed as units sold per month or as months of inventory remaining at the current sales rate.

Absorption turns before price does: when demand weakens, velocity falls while headline prices are held. It is the assumption developers most often get wrong in underwriting.

See alsoMonths of inventorySales velocity

Agreement for saleTransactions

The registered contract between a promoter and a buyer setting out the terms of purchase of an under-construction or completed unit, including price, payment schedule, specifications and possession date.

See alsoStamp dutyAllotment letter

Allotment letterTransactions

A document issued by a promoter confirming the allocation of a specific unit to a buyer, typically after a booking amount is paid and before the agreement for sale is executed.

See alsoAgreement for sale

Alternate accommodation rentTransactions

Rent paid by a developer to society members during redevelopment to cover temporary housing until possession of the new units is given.

Escalation, payment reliability and continuation until actual possession are as important as the amount.

See alsoCorpus

Area shareTransactions

A JDA structure in which the landowner receives a defined proportion of the constructed units or area, which they may hold or sell themselves.

See alsoJoint development agreement (JDA)Revenue share

B

Built-up areaDevelopment & planning

Carpet area plus the area of internal and external walls and, depending on convention, balconies — the area enclosed by the outer walls of the unit.

See alsoCarpet areaSuper built-up area

C

CAM chargesCommercial & sales

Common area maintenance charges payable by commercial occupiers for the upkeep of shared areas and building services, in addition to rent.

See alsoGrade A office

Carpet areaRegulatory

Under RERA, the net usable floor area of an apartment excluding external walls, service shafts, exclusive balcony or verandah area and exclusive open terrace area, but including the internal partition walls of the apartment.

Because it is defined and disclosed consistently, carpet area is the one standardised size measure buyers can compare across projects. The exact statutory definition should be read from the Act.

See alsoBuilt-up areaSuper built-up areaCarpet efficiency

Carpet efficiencyDevelopment & planning

The proportion of chargeable or constructed area that is usable carpet area. Higher efficiency means more usable space per rupee for the buyer.

It is won or lost at design stage through core placement, corridor strategy and structural grid, and is difficult to improve after sanction.

See alsoCarpet areaLoading factor

Cessed buildingRegulatory

In Mumbai, an old building — typically constructed before specified cut-off dates — on which a repair cess is levied and which is subject to specific repair and redevelopment provisions and tenancy protections.

See alsoCluster redevelopment

Channel partnerCommercial & sales

An independent real estate agent or brokerage that introduces buyers to a developer's project in exchange for a commission, typically registered with the relevant RERA authority.

See alsoSole-selling mandate

Cluster redevelopmentDevelopment & planning

The joint redevelopment of several adjacent plots or buildings as a single scheme, enabling better planning, wider roads and consolidated open space than plot-by-plot redevelopment.

See alsoSociety redevelopmentCessed building

Commencement Certificate (CC)Regulatory

Permission issued by the planning authority allowing construction to begin, often issued in stages up to specified floors.

See alsoOccupation Certificate (OC)IOD (Intimation of Disapproval)

Construction-linked payment planFinance & investment

A payment schedule in which a buyer's instalments are due on reaching defined construction milestones.

See alsoAgreement for sale

Conveyance deedTransactions

The document that transfers title of property from one party to another. In the society context, it can also refer to the transfer of land and building title to the housing society.

See alsoDeemed conveyance

CorpusTransactions

A lump sum paid by a developer to a housing society or its members in a redevelopment, commonly intended to offset the higher maintenance cost of the new building.

Its value depends on when it is paid and how it is secured, not only on its amount.

See alsoAlternate accommodation rent

CRZ (Coastal Regulation Zone)Regulatory

Coastal areas in which development is restricted or regulated under central coastal zone regulations, with permissible activity depending on the zone classification of the specific land.

Classification is parcel-specific and is one of the most common sources of misrepresented development potential on coastal land.

See alsoEco-sensitive zone

D

DCPR 2034Regulatory

The Development Control and Promotion Regulations for Greater Mumbai, which govern permissible development, FSI, setbacks, redevelopment incentives and related planning matters within the municipal area.

Specific provisions and their current amendments should be confirmed with a licensed architect or counsel.

See alsoFSI (Floor Space Index)Cluster redevelopment

Deemed conveyanceRegulatory

In Maharashtra, a process by which a housing society can obtain title to its land and building through the competent authority when the promoter has failed to execute the conveyance.

See alsoConveyance deed

Development agreementTransactions

The contract between a landowner or society and a developer granting development rights in exchange for defined consideration, such as area, revenue share, corpus and rent.

See alsoJoint development agreement (JDA)Society redevelopment

E

Eco-sensitive zoneRegulatory

A notified area around protected areas such as national parks where specified activities, including certain construction, are regulated or prohibited.

See alsoCRZ (Coastal Regulation Zone)

Escrow account (RERA)Regulatory

A designated account into which a prescribed proportion of amounts collected from buyers must be deposited and used only for construction and land costs of that project, with withdrawals certified by professionals.

See alsoRERA

Exit liquidityFinance & investment

The depth of the resale market for a specific property — how many buyers exist and how long a sale takes at a reasonable price.

See alsoRental yield

F

Feasibility studyFinance & investment

An analysis of whether a proposed development is financially viable, covering saleable area, revenue and absorption assumptions, costs, phased cash flow, returns and sensitivities.

See alsoResidual land valuePeak funding requirement

Floor riseCommercial & sales

An incremental charge per floor applied to units on higher floors of a building.

See alsoPrice ladder

FSI (Floor Space Index)Development & planning

The ratio of total permissible built-up floor area on a plot to the area of the plot. An FSI of 2 on a 1,000 sq m plot permits 2,000 sq m of floor area, subject to applicable regulations. Also called FAR (floor area ratio).

Permissible FSI in Mumbai depends on the applicable development control regulations, road width, zone and any premium or TDR loading — it should be confirmed for a specific plot by a licensed architect.

See alsoTDR (Transferable Development Rights)Fungible FSIPremium FSI

Fungible FSIDevelopment & planning

In Mumbai, additional compensatory floor area permissible on payment of a premium, introduced to account for areas such as balconies and flower beds that were previously excluded from FSI.

Its applicability and rate depend on the regulations in force and the nature of the development.

See alsoFSI (Floor Space Index)Premium FSI

G

Genesis IndexDevelopment & planning

The Genesis's proprietary micro-market scoring framework, applying eight weighted variables — connectivity, demand, supply, pricing, absorption, infrastructure, liquidity and development potential — identically across the MMR.

See alsoAbsorption rateExit liquidity

Grade A officeCommercial & sales

Commercial office space of the highest quality in a market, typically with large efficient floor plates, modern building services, power backup, parking and professional management.

See alsoCAM chargesLoading factor

H

Highest and best useDevelopment & planning

The legally permissible, physically possible and financially feasible use of a property that produces the greatest risk-adjusted value.

It is a financial question rather than a planning one: the maximum permissible use is not always the most valuable.

See alsoResidual land valueFeasibility study

I

Integrated townshipDevelopment & planning

A large, planned development combining residential, commercial, retail, social infrastructure and open space within a single master-planned area.

See alsoPhasing

Inventory releaseCommercial & sales

The controlled opening of units for sale in tranches — by tower, floor band or configuration — rather than making all inventory available at once.

See alsoPrice ladder

IOD (Intimation of Disapproval)Regulatory

In Mumbai, an approval of building plans subject to listed conditions that must be satisfied at specified stages; despite the name, it is an in-principle approval.

See alsoCommencement Certificate (CC)

J

Joint development agreement (JDA)Transactions

An arrangement in which a landowner contributes land and a developer constructs and sells the project, with the landowner compensated through a share of constructed area, revenue, or a combination.

See alsoArea shareRevenue shareDevelopment agreement

L

Loading factorCommercial & sales

The ratio by which carpet or built-up area is increased to arrive at super built-up or chargeable area, reflecting the share of common areas allocated to each unit.

A high loading factor means a buyer or tenant pays for more area than they can use.

See alsoSuper built-up areaCarpet efficiency

Lock-in periodCommercial & sales

The initial part of a lease term during which the tenant cannot terminate without paying rent for the remainder of that period.

See alsoCAM charges

M

MahaRERARegulatory

The Maharashtra Real Estate Regulatory Authority, the body administering RERA in Maharashtra, including project and agent registration, disclosures and complaints.

See alsoRERA

Months of inventoryDevelopment & planning

Unsold inventory divided by the average monthly sales rate — the number of months it would take to sell remaining stock at the current pace.

It is the input that determines whether a project's finance-cost assumption is realistic.

See alsoAbsorption rate

N

NAINARegulatory

The Navi Mumbai Airport Influence Notified Area — a large planning area around the Navi Mumbai International Airport for which CIDCO acts as the special planning authority.

O

Occupation Certificate (OC)Regulatory

A certificate issued by the planning authority confirming that a building has been constructed in accordance with approved plans and is fit for occupation.

See alsoCommencement Certificate (CC)

P

Peak funding requirementFinance & investment

The maximum cumulative gap between money spent and money collected at any point in a development — the largest amount of capital the project needs at once.

It, rather than total project cost, determines financial risk, and it is heavily influenced by phasing.

See alsoPhasingFeasibility study

PhasingDevelopment & planning

Dividing a development into stages that are constructed and sold sequentially rather than all at once.

Phasing affects peak funding, how much inventory competes simultaneously, and the ability to reprice later phases on evidence.

See alsoPeak funding requirement

Power of attorneyTransactions

A legal instrument authorising a person to act on another's behalf; in property transactions it commonly allows an NRI buyer to be represented at registration.

For use in India when executed abroad, it typically needs attestation or consularisation and adjudication in the correct sequence.

Premium FSIDevelopment & planning

Additional floor space that may be purchased from the planning authority on payment of a premium, where regulations permit.

See alsoFSI (Floor Space Index)Fungible FSI

Price ladderCommercial & sales

The unit-level pricing matrix of a project, including base rates by configuration and premiums for floor, view, facing and other attributes, along with the sequence in which prices step up.

See alsoFloor riseInventory release

Q

Quarterly progress updateRegulatory

The periodic update a promoter of a registered project files with the regulator, covering matters such as construction progress, bookings and approvals.

See alsoRERA

R

Ready reckoner rateTransactions

The minimum value per unit area notified by the state government for property in a given location, used as the floor for calculating stamp duty. Also called circle rate in other states.

See alsoStamp duty

Registered transaction valueTransactions

The consideration recorded in a registered property document — generally a more reliable indicator of achieved prices than listing or asking prices.

See alsoReady reckoner rate

Registration feeTransactions

A fee paid to register a property document with the sub-registrar, separate from stamp duty and subject to prescribed rates and caps.

See alsoStamp duty

Rental yieldFinance & investment

Annual rental income as a percentage of property value. Gross yield uses total rent; net yield deducts costs such as maintenance, tax, vacancy and brokerage.

See alsoExit liquidity

RERARegulatory

The Real Estate (Regulation and Development) Act, 2016 — Indian legislation regulating the real estate sector, requiring registration of qualifying projects and agents, standardised disclosures and escrow of buyer funds, and providing a grievance mechanism.

See alsoMahaRERARERA registration number

RERA registration numberRegulatory

The unique number issued to a registered project or real estate agent, which must be displayed on advertising and can be used to look up disclosures on the authority's website.

See alsoRERAMahaRERA

Residual land valueFinance & investment

The value of land derived by deducting development costs, premiums, finance costs and a required developer margin from the expected revenue of the scheme that can be built on it.

It is the method developers use to decide what they can afford to pay for land.

See alsoHighest and best useFeasibility study

Revenue shareTransactions

A JDA structure in which the landowner receives a defined proportion of sales revenue as the project sells.

The definition of revenue, discount authority and audit rights determine what the owner actually receives.

See alsoJoint development agreement (JDA)Area share

S

Sales velocityDevelopment & planning

The rate at which a project converts inventory into sales over time; often used interchangeably with absorption at project level.

See alsoAbsorption rate

Self-redevelopmentDevelopment & planning

Redevelopment in which the housing society itself acts as promoter, raising finance, appointing professionals and contractors, and retaining the margin a developer would otherwise take.

See alsoSociety redevelopment

Society redevelopmentDevelopment & planning

The demolition and reconstruction of an existing cooperative housing society building, typically by a developer who rehouses existing members in larger or improved units and sells additional units to fund the project.

See alsoCorpusAlternate accommodation rentSelf-redevelopment

Sole-selling mandateCommercial & sales

An agreement appointing a single firm as the exclusive sales and marketing partner for a real estate project. Also called an exclusive mandate.

See alsoChannel partnerPrice ladder

Stamp dutyTransactions

A state tax payable on instruments such as agreements for sale and conveyances, calculated on the higher of the transaction value and the government's ready reckoner value.

See alsoReady reckoner rateRegistration fee

Structured debtFinance & investment

Real estate finance that sits between senior construction debt and equity, typically carrying higher returns with negotiated security and repayment terms.

See alsoPeak funding requirement

Super built-up areaDevelopment & planning

Built-up area plus a proportionate share of common areas such as lobbies, lifts, staircases and amenities. Also called saleable area; its calculation varies by developer.

Because the loading of common areas differs between developers, super built-up area is not comparable across projects — which is why carpet area disclosure matters.

See alsoLoading factorCarpet area

T

TDR (Transferable Development Rights)Development & planning

Development rights awarded in exchange for surrendering land for public purposes or for other qualifying reasons, which can be used to build additional floor area on a different eligible plot, subject to regulations.

See alsoFSI (Floor Space Index)Premium FSI