Uni­form stan­dard for mea­sur­ing area a must

This is manda­tory be­cause there are no global stan­dards for mea­sur­ing su­per and car­pet area of prop­er­ties

HT Estates - - HTESTATES - Sachin Sand­hir

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.

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