In areas that allow only low-rise buildings (often limited to four storeys), property developers often sell each floor of the building to different owners. These private residences are known as builder floors. Buying and maintaining a building having several floors would be quite expensive for a home buyer. Further, there is absolutely no reason to have such a large property for nuclear families in big cities, as maintaining them would require a lot of money and effort.

Builder floors have commonly come up in big yet comparatively old cities like Delhi, Chennai and Hyderabad, where space constraints and monetary repercussions do not allow buyers easy access to bungalows or independent villas. The availability of builder floors in these cities means that buyers do not have to buy apartment flats in housing projects where a large number of residents occupy the same floor.

A builder floor basically works as a middle path between independent bungalows and flats – it does not cost as much as bungalows, nor is it as expensive to maintain. Unlike flats or apartments, builder floors offer more privacy and freedom.