Undivided Share of Land or UDS in Hyderabad Apartment Projects

Due to a range of advantages offered by apartments projects, a significant section of buyers decide to invest in an apartment unit rather than buying an individual plot. There are many, though who see it differently and choose individual plot. Reason being, apartment units get old with time, and the value of the property depreciates.

Undivided Share of Land
Why should you choose an apartment if that is the case?

Apartment buyers do not buy a part of the building alone, they also get a portion of the land on which that building is as a part of the deal. This ownership of such land is known as the undivided share of the land (UDS) of a homebuyer. Though the apartment building gets old and deteriorates over a period of time, the value of the apartment unit still increases with time because of the appreciation of the land value.

The undivided share of land of a buyer is clearly mentioned in a standard buyer-seller agreement, either in percentage terms or in a specific square footage. One could do a simple math and arrive at that value to ensure they are given the rightful share.

What is UDS?

UDS or Undivided Share of Land is a proportionate share of the land given to the buyer of the apartment where the apartment project is built. This share of land has no precise borders within the total extent of the land on which the apartment complex is constructed. The sum of all UDS will be equal to the total land area of the apartment complex.

How to calculate UDS?

Usually, UDS is calculated as the percentage of the apartment’s super built-up area to the total super built-up area of all apartments as hereunder:

(Individual apartment’s super built-up area / Sum of all apartments’ super built-up area) X total land area = UDS

For instance, buyer X has invested in an apartment project on a land of 10,000 sqft with 10 units, each measuring 1000 sqft. Here, X will have 1000 sqft as his/her undivided share in land.

In an apartment project with different square footage apartments, however, X’s UDS will be proportionate to the size of his/her apartment.

Suppose X has a 2BHK apartment in an apartment project that has a total of 100 apartment units – 40 of them 1BHK, 40 are 2BHKs and 20 are 3BHKs. The constructed area of a 1BHK flat is 1000 sqft, 2BHK is 1,500 sqft, and 3BHK is 2000 sqft. Here, the total land area of the society would be:

(40 x 1000) + (40 x 1500) + (20 x 2000) = 40,000 + 60,000 + 40,000 = 140,000 sqft.

X’s undivided share of land in the project would be:

1,500 / 140,000 x 100 = 1.07%

Importance of UDS

When you buy an apartment, it usually includes two components – cost of land and cost of the structure. This land component is the undivided share of land in any apartment complex. After a period of time when the building is damaged either out of compulsion or for re-development, then the buyer will get compensation on the basis of UDS i.e. the share of land which a buyer has on his name.

An allotted car park is a very prized possession for the same reason. If you have a car park, your UDS becomes UDS calculated plus car park land area in square footage. Thus, it is important to ensure that the developer documents the car park in your name.

While the land on which the building is built appreciates, the building itself depreciates in value. Therefore, an informed buyer or investor would definitely look at the UDS.

Undivided Share of Land or UDS in Hyderabad

Leave a Reply

Your email address will not be published. Required fields are marked *

Reset password

Enter your email address and we will send you a link to change your password.

Powered by Estatik