The real all-in cost of a flat in Bengaluru

Key takeaways

• Most Bengaluru flats are priced per saleable (super built-up) square foot, which includes a share of common areas; your usable carpet area is smaller.
• Divide the all-in cost by the RERA carpet area to compare flats fairly.
• Under-construction flats attract GST; completed flats with an occupancy certificate generally do not.
• Stamp duty and registration are charged on the higher of the sale price and the government guidance value; check current rates on the official portal.
• Ask for a written, itemised cost sheet that lists every charge and tax before you pay a booking amount.

Why is the advertised price not the price you pay?

Builders and brokers usually quote the base sale price, often written as BSP, in rupees per square foot of saleable area. That number is useful for a first comparison, but it leaves out several charges that are added later, some taxes, and the cost of making the flat liveable.

The gap is not small. Across the items below, it is common for the final cash outlay to be well above the headline figure. The exact amount depends on the project, the floor, whether the flat is ready or under construction, and how you finish the interiors. That is why the only reliable number is the one you calculate yourself from a written cost sheet.

Saleable area versus carpet area: which should you compare?

Carpet area, as defined under the Real Estate (Regulation and Development) Act, 2016 (RERA), is the net usable floor area of the flat. It includes the space under internal partition walls, but excludes external walls, service shafts, and exclusive balconies or open terraces. Built-up area adds the walls and balconies. Saleable area, also called super built-up area, adds a share of lobbies, corridors, lifts, staircases and sometimes the clubhouse.

The difference between saleable and carpet area is called loading. Loading varies widely between projects, so two flats with the same saleable price per square foot can have very different real costs.

Here is the fair comparison. Take the all-in cost and divide it by the RERA carpet area shown in the agreement and on the project's RERA page. For example, a 1,000 sq ft saleable flat with 700 sq ft of carpet area has 70% carpet efficiency. At ₹10,000 per saleable sq ft, the base price alone works out to about ₹14,286 per carpet sq ft.

Which charges sit on top of the base price?

Not every project charges every item, and some include them in the base price. Ask for each one by name.

• Floor rise: an extra amount per sq ft for higher floors, usually starting above a certain floor.
• Preferred location charge (PLC): a premium for a corner unit, park or lake view, or east-facing flat.
• Car parking: covered or stilt parking is often charged separately, per slot.
• Clubhouse or amenities charge: a one-time fee for club membership or amenity access.
• Infrastructure and utility charges: power (BESCOM) and water (BWSSB) connection costs, generator backup, and sometimes a separate 'development' charge.
• Legal and documentation charges: fees for drafting the agreement and sale deed.
• Khata transfer: the cost of getting the property tax record into your name after registration.

Taxes: GST, stamp duty and registration

GST (goods and services tax) applies to under-construction flats. For most homes, the current rate is 5% without input tax credit. For homes that qualify as affordable housing under the GST definition, it is 1%. A completed flat sold after the occupancy certificate (OC) is issued generally attracts no GST. Separately billed items, such as maintenance or club charges, can attract GST at a different rate, so ask for the tax on each line. GST rules can change, so confirm the current rate when you book.

Stamp duty and registration fees are paid when the sale deed is registered at the sub-registrar's office. In Karnataka, they are calculated on the higher of the sale price and the guidance value, which is the minimum value the government notifies for each area. Rates and slabs are revised from time to time, so check the current stamp duty, registration fee and guidance value on the Department of Stamps and Registration's official portal before you budget. Your lawyer can also confirm how duty is calculated if the purchase is split into a land share agreement and a construction agreement.

If the price is ₹50 lakh or more, you must deduct 1% tax at source (TDS) from payments to a resident seller and deposit it with the income tax department. This is not an extra cost, but it must be handled correctly.

Moving-in and running costs

Developers usually collect advance maintenance, often for 12 to 24 months, before handing over keys. Many also collect a corpus or sinking fund deposit, which is a one-time contribution to a reserve for major repairs. Check whether these are refundable or transferred to the residents' association.

Interiors are the biggest item buyers underestimate. A new flat often comes with flooring, bathroom fittings and basic electrical points, but not a modular kitchen, wardrobes, lights, fans, curtains, appliances or a water purifier. Budget for these even if you plan to rent the flat out, because unfurnished flats can take longer to let.

After moving in, add property tax, monthly maintenance, and any water tanker costs passed on by the association during summer.

Worked example: a flat with a ₹1 crore base price

This example is illustrative only. The ranges are assumptions for explanation, not a quote, a market rate or a forecast. Your project's actual cost sheet will differ. Assume a 1,000 sq ft saleable flat with 700 sq ft of RERA carpet area, at a base price of ₹10,000 per saleable sq ft, bought under construction with a home loan.

• Base price: ₹1.00 crore.
• Floor rise and PLC: ₹0 to ₹4 lakh.
• Covered car park: ₹3 to ₹6 lakh, if charged separately.
• Clubhouse and amenities: ₹1 to ₹4 lakh.
• Power, water, generator and infrastructure charges: ₹1 to ₹4 lakh.
• GST on the under-construction price: about ₹5 to ₹6 lakh (nil for a ready flat with OC).
• Stamp duty and registration: about ₹7.6 lakh on a ₹1 crore flat (roughly ₹6 to ₹9 lakh, depending on current rates and guidance value).
• Legal, documentation and khata transfer: ₹0.3 to ₹1 lakh.
• Advance maintenance and corpus deposit: ₹1.5 to ₹4 lakh.
• Interiors from basic to mid-range: ₹5 to ₹15 lakh.
• Loan processing, valuation and insurance: ₹0.2 to ₹1 lakh.
• Illustrative total: about ₹1.23 to ₹1.54 crore, or roughly ₹17,600 to ₹22,000 per carpet sq ft, against ₹14,286 per carpet sq ft for the base price alone.

Financing and waiting costs people forget

If you buy an under-construction flat with a loan, the bank releases money in stages as construction progresses. You usually pay interest only on the amount released, called pre-EMI interest, until possession. If you are also paying rent during this period, you are carrying two housing costs at once. A possession delay of a year or two adds directly to this.

A ready flat with an OC costs more upfront per square foot in many cases, but you avoid GST, pre-EMI interest and delay risk. Compare the two on total cash outlay up to the day you can actually move in or collect rent.

A resale flat has a different list. There is usually no GST and no builder charges, but you may pay brokerage, an association transfer or membership fee, any unpaid dues the seller has not cleared, and repairs or renovation for an older home. Stamp duty and registration still apply in the same way. Build these into your comparison rather than assuming resale is automatically cheaper.

How to get a clean all-in quote

Ask the developer or seller for a written cost sheet for the exact unit. It should show the carpet area as per RERA, the saleable area, the base rate, every additional charge, GST on each line, the payment schedule, and what is refundable. Compare it with the agreement for sale before you sign, and check that the carpet area matches the project's RERA disclosure. If a number is described as 'approximately' or 'as applicable', ask for the maximum. Keep the cost sheet with your booking papers. If the final demand at possession is higher than the sheet, it gives you a clear basis to question the difference.

Checklist

• Get the RERA carpet area and saleable area for the exact unit in writing.
• Calculate all-in cost divided by carpet area for every flat you compare.
• Ask whether floor rise and PLC apply to your unit and how much.
• Confirm whether car parking is included or charged per slot.
• List club, infrastructure, power, water and generator charges.
• Confirm the GST rate on the flat and on each separately billed item.
• Check current stamp duty, registration fee and guidance value on the official portal.
• Plan for 1% TDS if the price is ₹50 lakh or more.
• Ask how many months of advance maintenance and what corpus deposit is collected.
• Budget for interiors, appliances and basic furnishing.
• Estimate pre-EMI interest and rent until possession.
• Match the cost sheet against the agreement for sale before signing.

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Official sources

• Karnataka Real Estate Regulatory Authority (RERA)
• Department of Stamps and Registration, Karnataka
• Kaveri Online Services, Karnataka
• Income Tax Department e-filing portal (TDS on property)

This guide is general information, not legal or tax advice. Rules and rates change; confirm on the official portal and with an independent property lawyer before you pay.