Glossary · 26 terms
Real Estate
All real estate terms in the EquitiesIndia.com glossary — plain-English definitions written for Indian retail investors.
Affordable Housing(PMAY Housing)
Affordable housing in India referred to residential units meeting specified area and price criteria defined by government bodies — including RERA, income tax authorities, and GST Council — that qualified for preferential tax treatment, lower GST rates, and eligibility under schemes such as the Pradhan Mantri Awas Yojana (PMAY).
Carpet Area(Net Usable Area)
Carpet area is the net usable floor area within the walls of an apartment or property unit — the area over which a carpet could literally be laid — and is the legally mandated standard for property area disclosure under RERA since 2016.
Circle Rate vs Market Rate(Guideline Value)
The circle rate (also called guideline value, ready reckoner rate, or jantri) is the minimum value at which a property transaction must be registered with the government for stamp duty purposes, while the market rate is the actual transaction price agreed between buyer and seller, which may be higher or lower than the circle rate.
Completion Certificate vs Occupancy Certificate(CC vs OC)
A Completion Certificate (CC) is issued by the local municipal authority confirming that a building has been constructed in accordance with the approved plan, while an Occupancy Certificate (OC) confirms that the building is fit for occupation, with all utilities, fire safety, and structural requirements met.
Floor Space Index (FSI)(FAR)
Floor Space Index (FSI), also called Floor Area Ratio (FAR), is the ratio of the total built-up floor area of a building to the area of the plot on which it stands, determining the maximum permissible construction density in a given zone.
Fractional Real Estate(Fractional Ownership)
Fractional real estate investment is a model in which multiple investors pool funds to co-own a property — typically a commercial or high-value residential asset — with each investor holding a proportionate economic interest, receiving a share of rental income and capital appreciation without the cost and complexity of outright ownership.
Home Loan Balance Transfer(Home Loan BT)
A home loan balance transfer (BT) is the process of shifting an outstanding home loan from one lender to another, typically to avail a lower interest rate, better service terms, or additional top-up funding, resulting in interest savings over the remaining loan tenure.
Home Loan EMI vs Pre-EMI(Pre-EMI)
A home loan EMI (Equated Monthly Instalment) covers both principal repayment and interest on the full disbursed amount, while Pre-EMI is the interest-only payment made to the lender during the construction phase before full disbursal, applicable to under-construction properties where the loan is disbursed in tranches.
Joint Development Agreement (JDA)(JDA)
A Joint Development Agreement (JDA) is a legal contract between a landowner and a real estate developer under which the landowner contributes land and the developer contributes construction capital and expertise, with the finished project divided between them in an agreed ratio.
Land Revenue Records(Satbara Utara)
Land revenue records are official government registers that document ownership, area, land use classification, encumbrances, and cultivation details of land parcels, with the 7/12 extract (Satbara) being the most important land record document in Maharashtra, while mutation and encumbrance certificates serve corresponding functions in other states.
Net Asset Value (Real Estate)(NAV)
Net Asset Value in the real estate context is the estimated market value of a developer's or REIT's property portfolio minus all outstanding liabilities, providing an intrinsic value benchmark against which listed real estate companies and REITs trade at premiums or discounts.
Power of Attorney (Property)(GPA)
A Power of Attorney (PoA) in property transactions is a legal document authorising another person (the attorney or agent) to act on behalf of the principal in property-related matters, with a General Power of Attorney (GPA) granting broad authority and a Special Power of Attorney (SPA) limited to specific acts.
Pradhan Mantri Awas Yojana (PMAY)(PMAY)
Pradhan Mantri Awas Yojana (PMAY) is a Government of India housing subsidy scheme launched in 2015 with the objective of providing affordable housing to economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG), primarily through the Credit Linked Subsidy Scheme (CLSS) on home loan interest.
Pre-Sales (Real Estate)(Bookings)
Pre-Sales, also called bookings, is the total value of residential units booked by customers in a given period before construction is complete, and it is the leading operational metric for Indian real estate developers that predicts future revenue recognition and cash collection.
Ready Reckoner Rate(Circle Rate)
The Ready Reckoner Rate (RRR) — also known as the Circle Rate, Guidance Value, or Jantri Rate depending on the state — was the minimum value per square foot or per unit of property determined by the state government for the purpose of levying stamp duty and registration charges on property transactions.
Real Estate Regulatory Authority (State-wise Implementation)(RERA State Implementation)
The Real Estate (Regulation and Development) Act, 2016 mandated each state and Union Territory to establish its own Real Estate Regulatory Authority (RERA), resulting in significant variation in implementation effectiveness, digital infrastructure, and enforcement across states, with MahaRERA widely regarded as the most effective authority.
Registration Charges (Property)(Property Registration Fee)
Property registration charges are fees levied by state governments for the official registration of a property sale deed at the Sub-Registrar's Office, separate from stamp duty, and are typically fixed at 1 percent of the property value subject to a state-specified maximum cap.
REIT(Real Estate Investment Trust)
A Real Estate Investment Trust (REIT) is a listed investment vehicle that owns and operates income-generating real estate assets — such as commercial offices, malls, or warehouses — and is required to distribute at least 90 percent of its net distributable cash flows to unitholders, providing investors exposure to real estate income without direct property ownership.
REITs vs InvITs(REIT vs InvIT)
REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) are SEBI-regulated pass-through vehicles that pool income-generating assets — commercial real estate and infrastructure projects respectively — and distribute the majority of their income to unit-holders, providing investors access to asset classes previously restricted to institutional capital.
RERA(Real Estate Regulation Act)
RERA, or the Real Estate (Regulation and Development) Act, 2016, was a landmark Indian legislation that established regulatory authorities in each state and union territory to protect homebuyers, bring transparency to real estate transactions, and promote accountability in the residential and commercial property sector.
RERA Complaint Process(RERA Grievance)
The RERA complaint process is the statutory mechanism under the Real Estate (Regulation and Development) Act, 2016 through which home buyers, allottees, or real estate agents can file grievances against promoters or agents for violations including delayed possession, defective construction, and misrepresentation.
Section 54 (Capital Gains Exemption on House)(Section 54 Exemption)
Section 54 of the Income Tax Act, 1961 provided an exemption from long-term capital gains tax arising on the sale of a residential house, subject to the condition that the seller reinvested the capital gains (or net consideration, in certain cases) in purchasing or constructing another residential house within specified time limits.
Stamp Duty (Property)(Property Stamp Duty)
Stamp duty on property is a state-levied tax payable at the time of executing a property purchase agreement or sale deed, calculated as a percentage of the property's transaction value or the government's guidance value (ready reckoner rate), whichever is higher.
Super Built-Up Area(Saleable Area)
Super built-up area is the total area used by a property developer to compute the sale price of a residential unit, comprising the carpet area of the unit plus a proportionate share of all common areas in the building — lobbies, staircases, lifts, corridors, amenity spaces, and other shared infrastructure.
TDS on Property(Section 194-IA TDS)
TDS on property refers to the tax deducted at source under Section 194-IA of the Income Tax Act, 1961, requiring a buyer of immovable property worth Rs 50 lakh or more to deduct 1 percent of the purchase consideration from the payment made to the seller and remit it to the government.
Transfer of Development Rights (TDR)(TDR)
Transfer of Development Rights (TDR) is a mechanism by which a landowner whose land is acquired or reserved for public purposes — such as road widening, parks, or amenity spaces — receives tradeable certificates granting additional construction rights that can be used on another plot or sold to a developer.