Real estate prices may be crashing in the city, but many builders are increasing 'loading', or difference between carpet area and built-up area, negating discounts on offer.

Developers charge buyers for every inch used up by amenities like lobbies, staircases, flower beds, storage rooms, lifts, and even walls separating flats. The loading varies from 20% to 35%.

"But hit by the real estate gloom, a cross-section of developers has increased loading up to 50%," said the head of a global real estate firm. "Most builders quote rates on the saleable (built-up) area, which can often be misleading, particularly if loading is high."

The civic body charges a small premium for space used by amenities and the area is not computed in the developable floor space. Shyam Randive (name changed), a bank employee, visited the budget property exhibition organised by the Maharashtra Chamber of Housing Industry last week. He thought Kalpataru Developers quoted a good price of Rs3,132 per square foot (built-up) for a flat in Thane. But what Randive did not know is that the saleable, or built-up, area of the flat was 45% more than the carpet area.

A Kalpataru spokeswoman, however, said the company shares both carpet and built-up area rates with prospective buyers. "Our properties have a difference of 32% between carpet area and built-up space."

Property dealers say developers across the city have increased loading to maintain profit margins while promoting projects as affordable housing.

At Rs2,250 per sq ft, the value of a 1,106 sq ft built-up flat of Godrej Properties comes to Rs25 lakh. But if one divides Rs25 lakh with the carpet area of 840 sq ft, the rate works out to Rs3,000 per sq ft.

Rajshri Mehta/ DNA-Daily News & Analysis Source: 3D Syndication