Real Estate Glossary

The ratio of the total floor area of a building to the area of the plot on which it is constructed. Also known as FAR (Floor Area Ratio).

A mechanism that allows the transfer of development rights from one plot to another, typically used for infrastructure projects and slum rehabilitation.

Regulations that govern the development of land and construction of buildings in Mumbai, including FSI, setbacks, and other development parameters.

Updated regulations that replace the earlier DCPR, providing unified guidelines for development control across Mumbai.

The discount rate that makes the net present value (NPV) of all cash flows equal to zero. Used to evaluate the profitability of investments.

The difference between the present value of cash inflows and outflows over a period of time. Used in capital budgeting to analyze profitability.

A measure of the cash flow available to pay current debt obligations. Calculated as Net Operating Income divided by Total Debt Service.

The actual usable area within the walls of an apartment, excluding the thickness of walls, balconies, and common areas.

The carpet area plus the thickness of walls and balconies. This is the area for which the buyer pays.

The built-up area plus a proportionate share of common areas like lobbies, staircases, and amenities.