I heard about “BSP” when I was looking to buy a flat for the first time. I did not know about the BSP full form in real estate, so I asked one of the builders about it. He told me that housing projects that offer amenities have 2 types of components – an all-inclusive cost and the BSP (basic selling price).
An all-inclusive cost includes various charges like club membership charges, external and internal development charges, preferential location charges, etc. On the other hand, the basic selling price may or may not include one-time maintenance and floor-rise charges.
BSP Meaning in Real EstateThe BSP (basic selling price) is the base cost per square foot of the property, for the seller lists it for sale. Generally, it doesn’t include additional charges for parking, preferential location, floor rise, amenities, and other maintenance dues. Now you know what is BSP in real estate. Let’s understand this using an example:
Let’s see you saw an ad, where a 2 BHK is available at Rs 3000 per square foot. Therefore, a 1000 square feet flat would cost you Rs. 30,00,000. However, this isn’t the actual price of the flat since there are several unadvertised charges that you are required to pay over and above the BSP of Rs 30 lakhs. These additional costs can be up to 20 percent of the basic selling price.
| Type of cost | Calculation | Cost |
BSP |
Rs 3000x1000 square feet |
Rs 30 lacs |
PLC |
4 percent of BSP |
Rs 1.20 lacs |
External electrification charges |
1000 x Rs. 50 per square foot |
Rs 50000 |
IDC and EDC |
1000 x Rs. 100 per square foot |
Rs 1.0 lac |
Parking Space |
Fixed |
Rs 2.0 lacs |
Power back-up |
Fixed |
Rs 30000 |
Water connection, Electricity connection, sewerage, and drainage |
Fixed |
Rs 6000 |
R egistration charges and Stamp duty |
6 percent of BSP |
Rs 1.80 lacs |
Total Cost |
Rs 36.86 lacs |
While the basic selling price of the property is Rs. 30 lacs, you’d have to pay Rs. 36.86 lacs for the property, depending upon the additional charges levied by the builder. The additional charges are around 20 percent of the basic selling price.
Check Out the Cost Break-up of a Variety of Properties on NoBroker
This is all on the BSP full form real estate.
Read more:
What are the differences between Built-up Area,
Carpet Area, and Super Built-up area?
How to calculate built up area from FSI?
How to calculate super built up area?
I hope you liked my answer on the BSP full form in real estate.
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what is BSP in real estate?
Ojaswi
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2022-07-19T18:19:51+00:00 2022-07-19T18:58:50+00:00Comment
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