Real Estate Glossary

The increase in property value over time due to market conditions, development, or improvements. A key factor in real estate investment returns.

A unit of land measurement equal to 4,840 square yards, 43,560 square feet, or approximately 4,047 square meters. Commonly used for large plots and agricultural land.

A traditional Indian land measurement unit. Size varies by state: approximately 3,025 sq yards in Rajasthan, 1,500-2,500 sq yards in UP/Bihar.

The total constructed area including walls, balconies, and common areas. Typically 15-25% more than the carpet area of a property.

Tax levied on profit from sale of property. Short-term (held < 2 years): taxed at income tax slab. Long-term (> 2 years): 20% with indexation benefit.

The actual usable floor area within the walls, excluding thickness of walls, balconies, and common areas. RERA mandates pricing based on carpet area.

Classification of Indian cities by population and infrastructure. Tier 1: Metros (Delhi, Mumbai). Tier 2: Major cities (Chandigarh, Ludhiana). Tier 3: Towns (Hoshiarpur).

Permission required to convert agricultural land to residential/commercial use. Essential for development projects in India. Fees vary by state.

Certificate issued by local authority confirming construction is complete and complies with approved plans. Required before occupancy and utility connections.

AI-powered local market knowledge engine that provides city-specific demand patterns, trending sectors, and project success data for 200+ Indian cities. MyLandIQ's City Intelligence knows which projects thrive in specific cities — e.g., coaching centres in Patna, warehousing in Ludhiana, co-working in Bangalore.

Decrease in property value due to age, wear, or market conditions. For tax purposes, buildings (not land) can be depreciated over their useful life.

Comprehensive investigation of property before purchase, including title verification, encumbrance check, physical inspection, and legal compliance review.

A fulfilment centre for quick-commerce platforms (Blinkit, Zepto, Instamart) with no customer walk-in. Used for 10-minute delivery operations in urban areas. Dark stores are warehouse-like spaces located in residential or commercial zones, optimised for rapid order picking and dispatch.

Document from Sub-Registrar's office showing property's transaction history and any liens, mortgages, or legal disputes for the past 13-30 years.

Charges levied by development authorities for external infrastructure like roads, sewage, water supply, and electricity connections outside the project.

Ratio of total built-up area to plot area. Determines how much construction is allowed. Also known as FSI (Floor Space Index) in some states.

Same as FAR. The ratio that determines maximum permissible construction on a plot. Higher FSI allows taller buildings and more floor space.

Complete ownership of land and building with no time limit. Owner has full rights to sell, transfer, or modify. More valuable than leasehold.

Percentage of plot area that can be covered by construction at ground level. Typically 40-60% depending on zoning and building type.

Annual rental income as percentage of property value, before deducting expenses. A key metric for rental property investment analysis.

Corporate innovation and technology centres established by multinational companies for R&D, engineering, analytics, and business operations. India hosts 1,700+ GCCs — the highest globally — primarily in Hyderabad, Bangalore, Pune, and Chennai. GCCs drive massive demand for Grade-A office space.

The most profitable, legally permissible, physically possible, and financially feasible use of a property. Core concept in property investment analysis.

Land-based development like plotted colonies, row houses, or warehouses. Lower construction cost than vertical development. Ideal for Tier 3-4 cities.

The discount rate that makes net present value (NPV) of all cash flows equal to zero. More accurate than simple ROI for comparing investments over time.

Charges for infrastructure within the project boundary - internal roads, landscaping, sewage treatment, water tanks, electrical infrastructure.

Traditional land measurement unit used in Punjab, Haryana, and J&K. 1 Kanal = 605 square yards = 5,445 square feet = 20 Marlas.

Revenue document showing property ownership details in municipal records. Essential for property tax payment, building plan approval, and loan applications.

Property where land is leased from government/authority for 30-99 years. Ownership reverts to lessor after lease expiry unless renewed.

Percentage of property value that a bank will finance. Typically 75-90% for residential, 65-75% for commercial properties in India.

Land measurement unit in Punjab and North India. 1 Marla = 30.25 square yards = 272.25 square feet. 20 Marlas = 1 Kanal.

Single development combining residential, commercial, and sometimes industrial uses. Popular in urban areas for work-live-play lifestyle.

Transfer of property title in revenue records from seller to buyer's name after registration. Essential for establishing ownership in government records.

Annual rental income minus all expenses (maintenance, taxes, vacancy) as percentage of property value. True measure of rental profitability.

Clearance from various authorities (Fire, Environment, Airport, etc.) required before construction approval. Number of NOCs varies by project type.

Certificate from local authority permitting occupation of building after completion. Confirms all building norms, fire safety, and infrastructure are in place.

Time required to recover the total investment from net cash flows. Shorter payback = lower risk. Key metric for investment decision-making.

Land subdivision into smaller residential plots with roads, drainage, and utilities. Low construction cost, high ROI. Ideal for large plots in Tier 3-4 cities.

Legal document authorizing someone to act on property owner's behalf. General POA (all matters) or Specific POA (particular transaction).

Regulatory body established under Real Estate (Regulation and Development) Act, 2016. Protects buyers, ensures transparency, and regulates developers.

Percentage gain or loss on investment relative to cost. The most common metric for evaluating property investment profitability.

Annual rental income as percentage of property value. Key metric for buy-to-let investments. Varies by city tier and property type.

Legal document transferring property ownership from seller to buyer. Must be registered with Sub-Registrar to be legally valid. Primary proof of ownership.

Built-up area plus proportionate share of common areas (lobby, stairs, corridors, amenities). Typically 25-40% more than carpet area.

Tax paid to state government on property transactions. Calculated on market value or agreement value, whichever is higher. Varies by state (5-7%).

Document establishing legal ownership of property. Should show complete chain of ownership. Title search is essential before purchase.

Complete cost of development including land, construction, approvals, financing, marketing, and contingencies. Basis for ROI calculations.

Small towns with population 50,000-5,00,000. Lower land costs, growing infrastructure, different investment dynamics than metros. Examples: Hoshiarpur, Pathankot.

Next-generation commercial and institutional project types driven by technology adoption. These include FinTech Hubs, Edutainment Centres, Data Centres, EV Charging Stations, Dark Stores, Creator Studios, AI Diagnostic Centres, Smart Logistics Hubs, Gaming Arenas, and Innovation Labs. MyLandIQ recommends 19 tech-enabled project types alongside traditional options.

Nationally trending business sectors identified for the current year based on government policy, venture capital funding, and market growth data. In MyLandIQ, trending projects are tagged with a 🔥 badge and receive a scoring boost. For 2026, trending sectors include EV charging, quick-commerce (dark stores), data centres, co-living, digital healthcare, creator economy, FinTech, solar energy, and skill development.

Multi-story construction like apartments, office buildings, or malls. Higher construction cost but more built-up area on limited land. Ideal for metros.

Return on property investment expressed as annual percentage. Includes rental yield (income) and capital yield (appreciation). Total yield = both combined.

Government regulations dividing land into zones for specific uses: Residential, Commercial, Industrial, Agricultural, Mixed-Use. Determines what can be built.

Official document from planning authority confirming permitted land use for a specific plot. Required for building plan approval and development permissions.