The basic sale price (BSP) can be defined as a property’s base cost per sqft as listed by the seller. This price does not include charges related to floor rise, amenities, maintenance and parking.
Factors for deciding BSP
Property prices are impacted by several factors, such as demand and supply, presence of surrounding infrastructure and market inflation. Thus, BSP is decided based on the cost price of the property and the expected profit/loss. The BSP may largely be similar in a locality, however, it differs from one property to another based on their features, including the society’s amenities, connectivity, construction quality, the builder’s brand name and the furnishing status.
See also: How to calculate FSI and FAR?
How do you calculate BSP?
The below example explains the BSP calculation.
Ram has bought a 3-BHK for Rs 10,000 per sqft. Thus, the BSP of a house with an area of around 1,600 sqft will be around Rs 1,60,00,000 (cost per sqft x total area of the house). However, this amount is the base price and there are several other costs while purchasing a property that makes the final amount to be paid in the realty transaction.
Approximate cost of the property
| Cost type | Calculation | Cost |
| BSP | 10,000 x 1,600 | Rs 1,60,00,000 |
| Preferential location charges (PLC) | 4% of BSP | Rs 40,00,000 |
| External electrification charges | 1,600 x 50 per sqft | Rs 8,000 |
| Parking space | Fixed | Rs 3,00,000 |
| Water connection, electricity etc. | Fixed | Rs 8,000 |
| Stamp duty and registration charges | 6% of BSP | Rs 2,666,666.66 |
| Total cost of the property | Rs 22,982,666.66 |
Thus, even if the BSP is around Rs 1,60,00,000, the buyer has to spend close to Rs 22,982,666.66.
FAQs
When buying a property, does the buyer only have to pay the BSP?
No. The buyer has to add other aspects, such as amenities, floor rise, stamp duty and registration charges, with the BSP to get the total property amount to be paid.
Who decides the BSP of a unit?
The owner or a developer decides the BSP of a housing unit.
How is the BSP calculated?
The BSP is calculated as cost per sqft x total area of the property.
What is floor rise?
Floor rise is the increase in per sqft cost owing to the rise in floors in a tower. Hence, as you go higher in a building, the floor rise cost adds up.
What is PLC?
PLC stands for preferential location charges. This means if the building has things like a park view, city view and access to the main road, these are termed as preferential locations and they demand a premium.
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