Guide
Terrace and roof rights: what a top floor is really buying
The terrace is the single biggest swing in value between floors in the same building. Exclusive use, ownership, and the right to build on it are three different things.
## Three different rights, often confused People say 'terrace rights' as though it were one thing. It is at least three, and the difference between them is worth tens of lakhs.
- Exclusive use. You alone may use the terrace. You do not own it, and you generally may not build on it.
- Ownership of the terrace. The roof slab is conveyed to you as part of your floor.
- Air rights, or the right to construct. You may build a further floor above, subject to what the sanctioned plan and local bye-laws allow.
A seller saying 'the terrace is yours' may mean any of the three. The deed decides which.
## Why it is the biggest price difference in a building Terrace or roof rights can materially change the value of a top floor because they add scarce private outdoor space. The exact premium depends on the deed, the usable area and comparable sales in the same locality; it should not be inferred from the words 'terrace access' alone.
Without the rights, a top floor is usually the cheapest: more heat, more waterproofing risk, the most stairs, and no compensating asset.
## What exclusive use does not give you Exclusive use is a real and valuable right, and it is also frequently oversold. It does not usually let you enclose the terrace, add a room, or install anything structural. It does not stop the building's water tanks, lift machine room or common services from occupying part of it, and you will generally be obliged to allow access for their maintenance.
It also comes with a duty most buyers do not think about: terrace waterproofing is the top floor's problem long before it is anyone else's, and the first person to notice a failure is the person living under it.
## The question to ask about future construction If the right to build is what you are paying for, ask whether the plot has any floor-area ratio left unused, and whether the sanctioned plan already accounts for the floors that exist. Many stilt-plus-four buildings have consumed everything the plot allows, in which case the right to construct is a right to do nothing.
That answer is available before you buy, from the sanctioned plan and the local bye-laws. It is a great deal cheaper to get it then.
Three different rights, often confused
People say 'terrace rights' as though it were one thing. It is at least three, and the difference between them is worth tens of lakhs.
- Exclusive use. You alone may use the terrace. You do not own it, and you generally may not build on it.
- Ownership of the terrace. The roof slab is conveyed to you as part of your floor.
- Air rights, or the right to construct. You may build a further floor above, subject to what the sanctioned plan and local bye-laws allow.
A seller saying 'the terrace is yours' may mean any of the three. The deed decides which.
Why it is the biggest price difference in a building
Terrace or roof rights can materially change the value of a top floor because they add scarce private outdoor space. The exact premium depends on the deed, the usable area and comparable sales in the same locality; it should not be inferred from the words 'terrace access' alone.
Without the rights, a top floor is usually the cheapest: more heat, more waterproofing risk, the most stairs, and no compensating asset.
What exclusive use does not give you
Exclusive use is a real and valuable right, and it is also frequently oversold. It does not usually let you enclose the terrace, add a room, or install anything structural. It does not stop the building's water tanks, lift machine room or common services from occupying part of it, and you will generally be obliged to allow access for their maintenance.
It also comes with a duty most buyers do not think about: terrace waterproofing is the top floor's problem long before it is anyone else's, and the first person to notice a failure is the person living under it.
The question to ask about future construction
If the right to build is what you are paying for, ask whether the plot has any floor-area ratio left unused, and whether the sanctioned plan already accounts for the floors that exist. Many stilt-plus-four buildings have consumed everything the plot allows, in which case the right to construct is a right to do nothing.
That answer is available before you buy, from the sanctioned plan and the local bye-laws. It is a great deal cheaper to get it then.
Frequently asked questions
Does the top floor automatically get the terrace?
No. It is a common arrangement, not an automatic one. Where it is not written into the deed, the terrace is usually common property shared by all the floors.
Can I build a room on a terrace I have exclusive use of?
Usually not. Exclusive use is a right to use, not a right to construct. Building requires ownership or specific air rights, plus whatever municipal approval applies.