Uniform standard for measuring area a must
This is mandatory because there are no global standards for measuring super and carpet area of properties
Are you a prospective homebuyer? Have you found a housing project of your choice? If your answer is yes, did you ask your developer the reason why is he mentioning to you the size of the apartment in super area format instead of the carpet area, which is in fact 25 to 30% lesser and the actual area that you will live in.
My guess is that you will not get a straight answer to that question! The fact is that measurement of property assets such as homes, office buildings or shopping centres vary dramatically from one market to the next. The variation and irregularities can be seen across countries. For example, in India, the concept of super areas have been used to include outdoor swimming pools, stairs, common areas such as pavements; in parts of the Middle East floor areas can include the hypothetical maximum number of floors that could be built on the existing foundations; and in Australia, measurements have included outdoor parking spaces, even when they are not physically adjoined to the property itself.
The inconsistency is because countries around the world follow different measurement standards. Like many other countries India, too, has irregularities when it comes to measurement practices. And thus you see the prevalence of super area over carpet area and built-up area. And there are no global standards for measuring super and carpet area.
And as an outcome of this inconsistency, the final value of assets calculated is incorrect. This results in faulty transactions. In a series of events, the government also then shares the burden of these transactions in terms of reduced or incorrect state taxes such as stamp duty and registration charges.
Therefore, there is a need for a set of uniform measurement standards that is applicable worldwide. Having understood the importance of uniform property measurement standards, globally, governments and the private sector institutions including developers, are already working to remove these inconsistencies. An International Property Measurement Standards Coalition (IPMSC) was, therefore, formed in May last year after a meeting at the World Bank in Washington DC.
The coalition, comprising 29 organisations from across the globe, including the World Bank, aims to bring about harmonisation of national property measurement standards through the creation and adoption of agreed international standards for the measurement of office, residential, industrial and retail property. Hopefully, in future, the world will have uniform measurement standards for all kinds of properties.
Through this, the aim of the coalition is to enable properties to be measured on a transparent basis that promotes market efficiency through greater confidence between investors, occupiers and funds across borders.
The acceptance level among developers for uniform standards is gradually increasing. Any developer adhering to these standards will hugely benefit his business, as adapting these standards will add to the overall value of his offerings. Commercial property developers will benefit in terms of attracting more tenants, occupiers for their properties. Buyers will have faith while putting money in his project, as they would be paying for the exact usable space.