Why the quoted price is never the price
Every price sheet on this site, and almost every price sheet in India, carries an asterisk. On the project pages here it reads that prices are indicative and exclude GST, registration and other charges.
That is accurate and it is also doing a great deal of work. "Other charges" is a category, not a footnote. This article unpacks it.
The practical consequence: two projects quoting a similar rate per square foot can land in very different places once everything is added. The comparison only becomes real when you hold two complete cost sheets side by side.
Charges on the unit itself
| Charge | What it is | What to ask |
|---|---|---|
| Base price | Rate multiplied by area | Which area basis the rate applies to |
| Floor rise | An amount per sq ft for each floor above a baseline | The rate per floor and the baseline floor |
| Preferred location charge | A premium for corner, park facing or other preferred units | Whether your unit attracts one |
| Car parking | Allotted separately from the flat | How many, covered or open, and the charge for each |
| Clubhouse or amenity charge | A one time contribution to the amenity block | Whether it is one time or recurring |
Floor rise is the one that moves most. On a high floor it can change your effective rate materially, which is why choosing a floor is partly a pricing decision. And the base price only means something once you know which area basis it was quoted on.
Statutory and registration costs
- GST, where the property is under construction. It does not apply to a sale after the occupancy certificate has been issued, which is one of the quieter differences between buying early and buying ready.
- Stamp duty, calculated on the consideration or the guidance value. How it is computed in Karnataka is its own article.
- Registration charges, payable when the sale deed is registered.
- Legal and documentation fees, including your own lawyer, which is money well spent.
- Tax deducted at source, where applicable on the payment to the seller. The obligation generally sits on the buyer, so it is yours to get right.
What falls due at possession
Deposits, advances and interiors tend to arrive together, in the same period as registration and the start of full EMI. A budget that covers the purchase but not this cluster is a budget that breaks at the finish line.
- Electricity and water deposits, and any infrastructure or sewage charge.
- Maintenance advance, often twelve or twenty four months collected up front.
- Corpus or sinking fund, a one time contribution towards long term common asset replacement.
- Khata registration or transfer for your unit. Why the khata matters is worth reading separately.
- Interiors. Quoted per square foot, scaling with the size of the home, and not funded by the home loan.
Want a full cost sheet for a specific unit?
Base price, floor rise, parking, deposits, clubhouse charges and the statutory costs can all be put on one sheet. Tell us the project and configuration.
What starts after you move in
These are not purchase costs, but they are the cost of owning the home and they begin immediately:
- Monthly maintenance, normally per square foot per month. What it covers and how it is set deserves its own look.
- Property tax, annually.
- Utilities, which scale with the size of the home.
- Your EMI, at full rate once the loan is fully disbursed.
The order it all arrives in
Booking
Booking amount, and the first visible charges on the cost sheet.
Agreement
A larger tranche, plus stamp duty on the agreement where applicable, plus your legal fees.
During construction
Tranches per your payment plan, GST with them, and interest on the disbursed loan. How much lands here depends entirely on the plan, and a 50:50 plan behaves very differently from a construction linked one.
Registration
Stamp duty and registration charges, the largest statutory items.
Possession
Deposits, clubhouse and corpus charges, maintenance advance, khata, and the start of full EMI.
Immediately after
Interiors, and the monthly costs of running the home.
Ask for this in writing
- A single cost sheet for my specific unit, with every line itemised.
- Which lines are one time and which recur.
- Which lines are inside the payment plan and which fall outside it.
- The floor rise rate per square foot per floor, and the baseline floor.
- The parking allotment and its charge.
- The GST position and amount for this transaction.
- The estimated stamp duty and registration in rupees.
- The maintenance advance, the corpus, and the monthly maintenance rate.
Then ask the same eight questions of every project on your shortlist. That is the only comparison that means anything.
This explains how the mechanism works. It is not financial, tax or legal advice, rates and rules change, and your position depends on your own circumstances. Confirm the figures with your chartered accountant and have a property lawyer read your agreement.
What extra charges are there when buying a flat in Bangalore?
Commonly floor rise, preferred location charges, car parking, electricity and water deposits, a sewage or infrastructure charge, clubhouse or amenity charges, a corpus or sinking fund contribution, GST where the property is under construction, stamp duty and registration, legal and documentation fees, a maintenance advance, and then interiors. Ask for all of them on one sheet for your specific unit.
Is GST included in the quoted price?
Usually not. Price sheets typically quote a base price excluding GST, registration and other charges, which is why the asterisk appears. GST applies to under construction purchases and not to a property sold after the occupancy certificate has been issued. Confirm the position and the amount for your transaction with your chartered accountant.
How much should I budget beyond the base price?
There is no single percentage, because it depends on the project's charge structure, the floor, the GST position and how you fit out the home. The dependable approach is not a rule of thumb but a written cost sheet listing every line for your unit, plus a separate interiors estimate priced per square foot for the actual size.
Does the home loan cover registration and interiors?
Generally not in full. Lenders fund a share of the property value, and stamp duty, registration and interiors commonly fall outside that. Plan to fund them from your own money, and ask your lender exactly what is and is not included before you commit.
What is a corpus or sinking fund?
A one time contribution collected towards the long term maintenance of common assets, held so that major repairs and equipment replacement can be funded without a sudden levy on residents. Ask how much it is, who holds it, how it is accounted for, and whether it transfers to the residents' association.
When do these charges fall due?
They cluster. Some arrive with payment tranches, but stamp duty, registration, deposits, clubhouse charges, the maintenance advance and interiors tend to fall around registration and possession, which is also when your full EMI usually begins. That concentration is the part most worth planning for.