By Daman Mehta
Tall buildings aka Skyscrapers are definitely is an inspiring real estate proposition and a pride in itself to be a part of, but not everyone desires to stay in high rises, there is a bunch who prefers low rise luxurious builder floors right in the center of the city.
What is a builder floor?
A builder floor apartment is a low-rise independent residential unit concept, generally with 4 – 5 floors maximum.
Depending on local municipal rules of development which might vary from city to city, usually builder floors are built of a piece of land which could be bought independently or be in collaboration with land owner.
These units can be offered in various forms and sizes eg : semi furnished / fully furnished ( with top of the line interiors ), 2, 3 ,4,and even 5 bhk configuration.
A win – win Situation
Builder floors concept are popular in places such as Delhi, Gurgaon Chennai, Bangalore and Hyderabad.
The Builder floor projects are generally developed by small players of surrounding locality who are well known in the local market which helps them to interact directly with land owners and give a personal touch to the transaction. Once the trust is built, the projects most of the time takes off on a collaboration model. Collaboration is a win win situation for both the parties wherein both share equities in the project. Generally, the builder puts in money for development, while the owner contributes land.
The land (owners share) usually constitutes for 80-90 per cent cost of a property in Tier I cities like Delhi and Gurgaon, the builder usually gets one / two out of four floors. In other cities, however where the land costs are usually lower, the builder gets a bigger share of the property.
A ratio is worked out ( more deal to deal basis ) and builder ends up paying cash in lieu of his construction cost and the share he gets in the land.
“ landowner is happy to receive cash plus the newly developed home as per his choice / desire and builder is happy as he gets another project in his portfolio to expand his business”.
End of the day – A WIN WIN SITUATION