Understanding the Key Difference Between BUA and GFA

Where real estate is concerned, even minor variances in vocabulary can make a lot of difference. Built-up Area (BUA) and Gross floor area (GFA) are two terms that have been most misread. They might sound somewhat similar at first, but in the real sense, they serve as a great contrast in the sense that one is used to create what buyers intend to pay, and the other guides how developers and architects design within legal limits.

The main distinction between BUA and GFA, supported by a breakdown of key differences, will be explained in this blog to present a clear understanding of these concepts and what drives their existence in conversations and writing.

What is a Built-Up Area (BUA)?

The Built-Up Area (BUA) is the total area in the walls surrounding an apartment, office or building unit. This includes more than usable living area (carpet area):

• The real area of floor space (carpet) used.
• The internal and external thickness of walls.
• Other spaces covered included balconies, terraces or utility areas (based on local regulations).

Usually, in the real estate scene, BUA is featured in sales brochures since it gives higher rates compared to carpet area. Yet, the buyers need to keep in mind that not all of this space is useful.

Example:

We take an example of an apartment that has been advertised as 1200 sq. ft. BUA. That figure may be as follows:

• Carpet area Area under use): 900 sq. ft.
• Wall thickness: 150 sq. ft.
• Balcony + Utility Area: 150 sq. ft.
• Total Built-Up Area = 900 + 150 + 150 = 1,200 sq. ft.

Thus, when the builder is selling the flat at 1,200 sq. ft. as illustrated, he will only be able to walk on a space of about 900 sq. ft.

What is Gross Floor Area (GFA)?

The Gross floor area (GFA) means the sum of the area of all floors in a building, starting with the exterior wall. GFA is a regulatory metric as opposed to BUA, which is relevant to buyers straight away. This is applied by authorities to verify the compliance of zoning, Floor Area Ratio (FAR/FSI) and development approvals.

Typically, GFA includes:

• All floor areas that are enclosed (residential, commercial, service).
• Setting up the exterior of the walls.
• It typically does not include open areas, like the balconies, a terrace, a shaft or parking (however, the rules are subject to change depending upon the local building code).

Example:

Suppose a residential building of the following plan:

• Covered Area of Ground floor: 5,000 sq. ft.
• Covered Area of 1st floor, 5,000 sq. ft.
• Covered Area of 2nd floor: 4,500 sq. ft. (a little bit reduced by design).

Total GFA = 5,000 + 5,000 + 4,500 = 14,500 sq. ft.

Now, note:

• GFA does not include balconies, open terraces, parking and service shafts (depending on codes used locally).
• GFA, in this case, is the value that developers should take to abide by the FAR/FSI regulations.

Key Differences Between BUA and GFA

1. Definition and Purpose

• BUA (Built-Up Area): Given as the area of each of the outer walls of a unit, i.e. carpet area, wall thickness and in some cases, of the balconies as well. It comes into application primarily in the sales and marketing of residential or commercial units.
• GFA (Gross Floor Area): This is the sum of the covered area of all the floors in a building, commencing with the exterior walls. It is basically a control mechanism for the regulations that govern building approvals as well as FAR/FSI regulations.

2. What's Included

• BUA: Carpet area, wall thickness, and covered balconies/terraces.
• GFA: The sum of all areas of all the levels of the building to the outer walls.

Note: GFA typically does not involve open balconies, terraces, shaft and parking whilst BUA includes balconies/terraces.

3. Who Uses It

• BUA: This is what is used by developers or buyers when making sales in the process of quoting the size of a unit.
• GFA: Project planning, approvals, and compliance are done by the inventors of building projects to the architects, developers and authorities.

4. Influence on Purchasers and Constructors

• BUA: To influence the price that a buyer is paying- when BUA is larger, it does not necessarily imply additional space that can be utilised.
• GFA: Affects the level of a developer that holds legal ability to develop on a plot, which still has a direct relationship to the zoning regulations and FAR/FSI restrictions.

Why the Difference Matters

1. For Buyers

For most purchasers, the size of a property quoted is in Built-Up Area (BUA), not carpet area. With this, they may be wrong in considering this to be a usable space in its entirety. Understanding the difference also assists the buyers in knowing exactly how much space they will be paying for and avoiding disappointment while buying the property.

2. For Developers

The developers should balance between BUA and GFA. Although the units can be marketed by means of BUA, the maximum number of units that are legally allowed to be constructed on a piece of land is stipulated by GFA. A wrong interpretation of GFA may lead to breach of design, fines, and project delay.

3. For Architects and Planners

Architects apply GFA to lay down designs within legal FAR/FSI limits. They should also maximise the BUA so that units can look attractive towards consumers. By having a clear understanding of both metrics, they can design it in an efficient way and adhere to the regulations while retaining as much marketability as possible.

4. For Regulators

Zoning and urban planning regulations are implemented with the help of GFA by local authorities. Cities are likely to become overcrowded without the GFA boundary, unsafe or haphazard constructions. The difference makes the growth occur in a legal and facilitated manner.

Common Misconceptions

1. BUA and GFA Are the Same

The opinion of many individuals is that BUA and GFA are the same since they both concern the area of building. In reality, BUA is a unit's sales metric, and GFA is a regulatory metric of the whole building.

2. BUA Equals Usable Space

Buyers tend to think that with the sale of a flat as 1,200 sq. ft. BUA, they get an opportunity to make use of the whole 1,200 sq. ft. Matter of fact, the carpet area is the only place which can be used; moreover, the rest can be walls and even balconies.

4. Balconies and Terraces Are Never Left Out

There is an opinion that both BUA and GFA always include balconies and terraces. Out of practice, local building codes tend to include balconies in the count of BUA and usually not in the count of GFA.

5. Local Rules do not change the definitions

Citizens think that the definitions are universal. However, what is counted in GFA (or even in BUA) may differ greatly across cities or countries. Regulations in localities should always be checked before assuming.

Closing In!

The meaning of Built-Up Area (BUA) and Gross Floor Area (GFA) is very important in the case where an individual desires to engage in a real estate purchase, business project design as well or a building project. The developers emphasize the market units on BUA and the authorities on GFA in order to control building structures.

The confusion may cause false anticipations in the buyers and the misuse of money in the development end. The moral of the story is that BUA has to do with what you are charged to pay, or GFA has to do with what can be legally constructed. Definitions in your local regulations constantly differ, and it is always good to ensure what is entailed prior to basing any decision.