1. Gross Area
Gross area refers to the total land area of a property or plot, including all components within its boundaries. This measurement encompasses:
- Usable land for construction and operations
- Setback areas (as per zoning regulations)
- Internal roads or driveways within the site
- Open spaces, landscape zones, utility corridors
- Any common areas shared among multiple occupants in an industrial layout
Gross area represents the entire physical footprint of the land parcel, regardless of whether every part of it is buildable or directly usable for industrial activity.
2. Net Area
Net area refers specifically to the usable portion of the land that can be developed, constructed upon, or used for core operations. It excludes:
- Setbacks and mandatory open spaces
- Internal roads, drainage lines, and green buffers
- Utility zones or reserved easements
- Shared/common infrastructure in a park or estate
Net area is often the effective area used for calculating:
- Built-up space
- Machinery layout and operations
- Efficiency of land utilization
- Plot coverage ratios
3. Application in Industrial Land Transactions
When purchasing or leasing industrial land:
- Pricing may be quoted based on either gross or net area
- Buyers must verify if the quoted area includes non-usable portions
- Net area is used to estimate actual development potential and production planning
- Gross area is relevant for legal documentation, boundary definition, and taxation
Understanding the difference helps in accurate cost assessment, planning, and compliance.
4. Typical Ratios in Industrial Layouts
In planned industrial estates or parks, the net-to-gross area ratio depends on design and regulatory norms:
- Net area may constitute 70–85% of gross area
- The rest is allocated to roads, services, landscaping, and open space
This ratio varies based on the estate’s layout density, zoning standards, and infrastructure allocation.
