Essential Real Estate Terminology to Understand Before Searching for a Luxury Apartment in Mumbai

Mumbai, one of the rapidly evolving cities financially and in terms of real estate, is also witnessing parallel development in the luxury apartment sector. If you are planning to buy a luxury apartment in Mumbai, there are some terminologies to understand before beginning your search.
Since buying a Luxury Apartment in Mumbai is an expensive effort, understanding these terms is crucial for making informed decisions and ensuring a smooth home-buying process. here, we’ll explore 10 essential terms from the real estate dictionary that every homebuyer should know.

Real Estate Terms to Know

Here’s a list of some common real estate terms and definitions that will help you easily navigate your Luxury Apartment in Mumbai buying journey.

(CC) Commencement Certificate

The first thing you should be aware of before buying a luxury apartment in Mumbai is that CC (Commencement Certificate) is an important approval that a real estate developer should have before starting any project. It indicates that the project has cleared all legal aspects and is being constructed in accordance with government guidelines. The ongoing projects by Gurukrupa Group have received a Commencement Certificate and are strategically located in hot spots of Mumbai.

Cost Sheet

When buying a luxury apartment in Mumbai, the cost sheet is a simple and crucial term you should understand. It includes a breakdown of apartment costs and the payment schedule. Elements such as agreement value, stamp duty, additional charges, registration fees, and taxes are among the various components listed.

(OC) Occupancy Certificate

A term you must know in the real estate sector is OC (Occupancy Certificate). This document certifies that the building is ready for occupancy, confirming that the project has been constructed according to proper guidelines and approved by the government as safe for habitation.


The Real Estate Regulation and Development Act, passed by the government in 2016, aims to increase accountability, efficiency, and transparency in the real estate sector while also protecting the interests of homebuyers seeking luxury apartments in Mumbai and throughout India.

Carpet area and Built-up Area

The term ‘carpet area’ refers to the actual living space of a luxury apartment, measured from its interior walls. This encompasses the area that can be carpeted and extends to include balconies. The built-up area comprises the total space of the flat, encompassing the carpet area as well as the wall and duct thickness, which typically adds 10 to 15% more than the carpet area.

Floor Space Index (FSI)

When looking for a luxury apartment in Mumbai, it’s essential to understand that FSI (Floor Space Index) is the ratio of a building’s floor area to the plot area, regulating urban density. It’s calculated by dividing the total floor area by the plot area, and FSI varies according to city regulations.

Preferred Location Cost (PLC)

When searching for a luxury apartment in Mumbai, location stands out as the most crucial aspect to consider. However, there is a term known as PLC (Preferred Location Charge), where an additional cost is incurred for the advantage of a prime location. Nevertheless, investing in reputable real estate builders in Mumbai, such as Gurukrupa Group, eliminates the need for additional payments for location advantages. Gurukrupa Group offers projects in prime Mumbai locations that seamlessly connect you to every corner without any extra charges.

Floor Rise Cost

As the number of floors in a high-rise building increases, most developers apply an increased charge per square foot, known as floor rise cost. The cost for the first floor is lower than that for the fifth floor and is known as floor rise. when investing in a well-established Real Estate Company in Mumbai such as Gurukryupa, there’s no requirement for extra charges for additional square footage, as Gurukrupa projects provide extensive space, surpassing the need for further purchases.


One of the most important terms you should know when purchasing a luxury apartment in Mumbai or anywhere else is amortization, which refers to the predetermined schedule within which the borrower gradually pays off debts over a specified duration.


A real estate agreement usually includes various contingencies. In real estate terminology, a contingency refers to a clause in the agreement outlining a condition. The contract only becomes legally binding if the relevant condition is fulfilled.

Before purchasing a luxury property in Mumbai, you should be aware of the terms mentioned above as they will help you understand the legal aspects of the project you are considering.

While there are many real estate companies in Mumbai that offer projects with modern facilities, world-class amenities, and seamless connectivity, projects by Gurukrupa such as Shivsagar, Guru Atman, and Marina Enclave are strategically located in prime Mumbai locations. These locations connect every corner of the city within an hour. Gurukrupa believes that luxury does not just lie within four walls, so they offer world-class facilities that will uplift your living experience.

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