Times Property | 11th October 2023

Let’s take a closer look at the key aspects of a quadruplex apartment so that you can keep them in mind when you’re about to make your big investment.

In this vibrant and bustling city where each bit of space is so valuable, a brand new concept has emerged on the horizon – we’re talking about quadruplex apartments.

These remarkable living spaces not only elevate the urban living experience but also redefine the essence of luxury. “A quadruplex contains four separate apartments that share the same building structure. The floor plan and layout can vary, with units being stacked, side-by-side, or a combination, but each unit functions as a fully independent living space with its amenities. The quadruplex design essentially doubles the housing capacity compared to a standard duplex, while still providing a more intimate smallscale multi-family setting,” shares Anuj Puri, chairman, of Anarock Group.

As the popularity of quadruplex apartments is on the rise in the already thriving Indian real estate market, let’s explore the benefits, drawbacks, and tax benefits associated with it.

Advantages of a quadruplex house

The biggest plus of a quadruplex apartment is that it has amenities for each living space, thus elevating the privacy quotient. “If looking from an investment/rent point of view, this type of apartment makes sense as you can keep a check on the upkeep of the apartment. In case of a large joint family, these units help stay close while maintaining your individual home,” says Mohit Ramsinghani, chief sales officer of a real estate group. From a long-term maintenance perspective also, this kind of a home makes sense for a large family, as shared walls reduce the external maintenance, as compared to several single homes, opines Puri.

From a taxation perspective

Another advantage that such apartments have over buying four single units is tax benefits. Sadhav Mishra, partner at a law firm explains, “Under Section 24 (4) of the Income Tax Act, 1961, if the owner owns more than one house, at his discretion one house will be considered as self-occupied and the remaining house will be charged to tax based on the annual value determined u/s 23(1) where it is charged to tax on actual rent received or expected rent, whichever is higher, considering the same as deemed to be let out. Under the provisions mentioned above, even if the house has not been given on rent, the same is subject to be taxed as per Section 23 (1) as notional rent. Simply put, in India, if an owner is holding multiple properties, which may be vacant and the owner has not leased these properties to third parties, the owner will still be liable to pay tax on the amount of rent he/she might reasonably expect to earn in a year, whether or not the owner earns it. However, if the owner is residing in one unit forming part of the quadruplex while keeping the balance three units vacant, the same may not attract the provisions of the IT Act and the owner may not be liable to pay such tax on the vacant properties as the quadruplex will be considered as one unit.”

Buying better than converting

Generally, in India, people buy adjoining homes and then club them by tearing down the middle wall. But for instance, in Mumbai, as per Section 347 (c) of the Mumbai Municipal Corporation Act (“Act”), no person can without the written permission of the commissioner or otherwise in conformity with the terms of such permission make any alteration or make any changes in an existing building originally constructed or authorised to be used for human habitation. So, if you are planning to buy four homes, “It makes more sense to look for a quadruplex apartment in an under-construction building for which the structural designs, building plan, and layout have already been sanctioned by the competent authority in accor dance with Section 2 (zq) of the RERA Act, 2016 whereby the sanctioned floor plans already demarcate such quadruplex, or ready structure as opposed to buying four units and then turning them into one quadruplex apartment. Buying in an under-construction structure could also give you the freedom to make small alterations to the home to suit your needs. Also, non-compliance with the provision mentioned under Section 347 (c) attracts heavy penalties on the purchaser as per Section 471 of the Act,” says Mishra.

In conclusion

It is not a bad decision to own a quadruplex house but there are certain things that you cannot ignore before finalising the property. “One should evaluate important factors such as ticket size of each unit, unit carpet area, and location, before investing in a quadruplex; this will help in the long term to maintain liquidity (in case of any emergency). Location will be the deciding factor to evaluate the demand for quadruplex,” advises Ramsinghani.

Talking about the ideal locations, price point, size and amenities of quadruplex houses, Jay Morzaria, national president, NAREDCO NextGen shares, “Due to the big-ticket size, quadruplex apartments find takers in prime locations of the city. The size of quadruplex apartments ranges from 8,000 sq ft to 15,000 sq ft. Depending upon location, quadruplex apartment prices range between Rs 90 crores and Rs 160 crores. Apart from usual amenities, buyers of a quadruplex apartment would ideally seek a private elevator, an open deck/terrace area of approx. seven to nine per cent of the total flat size, where they can have social gatherings. Some buyers also prefer having a private pool/jacuzzi in the deck area. Such buyers also plan to set up their offices in the space available.”