Why two identical flats in the same project sell at different prices

Two flats of the same size and layout in the same tower can differ in price by several lakhs. The builder's price sheet adds premiums for floor, facing and position. Some of those premiums pay for something you will feel every day. Others exist mainly because buyers are known to pay them.

Floor level

Higher floors cost more because of the view, lower traffic noise and the general feeling that higher is better. Lower floors are priced down over worries about noise, privacy, dust and insects.

The difference in daily life between the 10th and the 15th floor is usually small. In a dense area the view you pay for can also disappear when the next tower comes up. Lower floors have their own advantages: less waiting for lifts, easier evacuation in an emergency, and they suit families with elderly parents.

Before paying a floor premium, ask what is planned on the adjoining land.

Facing

In Hyderabad, east-facing and north-facing flats sell at a premium because many buyers prefer them for traditional reasons. Builders know this and price accordingly.

How comfortable the flat is depends more on ventilation, cross airflow, how much direct sun it gets and how hot it becomes in the afternoon. A west-facing flat with good shading and airflow can be more comfortable than a badly designed east-facing one. If facing matters to your family, pay for it knowingly. If it does not, a less popular facing is often the best-value unit in the tower.

Stack position

A stack is the vertical line of flats that share the same position on every floor, usually labelled A, B, C and so on. It decides what you look at and what you hear.

One stack may open onto the central garden or open land. Another may face the next tower, a service road, the parking ramp or the transformer yard. Garden-facing stacks usually carry a premium, and those facing utilities or land marked for future phases are discounted. Many buyers ignore the stack at booking and notice it only after possession.

Demand and scarcity

Some units cost more simply because they sell faster. There may be only a few of that type, the marketing may push them harder, or early buyers took them first and the rest now look scarce.

Corner flats are the usual example. They do get better ventilation and privacy, so part of the premium is fair, but the amount charged can be more than the benefit is worth.

Where buyers overpay

• Assuming a higher floor is always better value.
• Paying for a preferred facing without checking heat and airflow in the actual flat.
• Not looking at what the stack faces.
• Booking early without seeing the full site layout.
• Relying on what the sales executive says about orientation, without checking it on the plan or on site.

What holds its value later

A premium paid at booking does not always come back at resale. Resale buyers look harder at how well the building is maintained, how the association is run, demand for the location and how efficient the layout is. Floor and facing premiums tend to narrow once the building is occupied and the area around it is built up.

Tenants care even less. They rarely pay extra rent for a higher floor or a particular facing. They look at the rent, the maintenance charge and how easy the place is to get to. If you are buying to let, the cheapest decent unit in the tower is usually the right one.

How to compare units

1. Ask for the price sheet of the whole tower and compare several units side by side.
2. Ask the builder to state each premium separately: floor rise, facing, corner, view.
3. Stand in the flat, or one directly below it, in the afternoon and check light and airflow.
4. Look at the master layout to see what will be built in front of your stack.
5. Work out what the premium adds to your loan and to maintenance if that is charged per square foot.
6. Decide which premiums you are paying for comfort and which for preference, and be honest about the second kind.

If you want a second pair of eyes on which unit in a project is fairly priced, book a call with a relai advisor.