Answer:
144 square feet
Explanation:
The new dimension of the patio is the product of the original dimension and the scale factor. The builder's plans say the new dimension is 125% of the current dimension, so the new side length is ...
125% × 16 ft = 1.25 × 16 ft = 20 ft
The new patio area is (20 ft)² = 400 ft².
The original patio area is (16 ft)² = 256 ft².
The new patio is 400 -256 = 144 square feet larger than the current patio.
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Additional comment
Words like "increase", "larger", "more" and similar can suggest either addition of an amount, or multiplication by a factor. The problem statement must be parsed carefully in order to determine exactly what is meant. There can be some ambiguity when "larger" and "times larger" are used with percentages. (That is not the case here.)
The word "of" almost always means "times" in this context. So "125% of its current measure" means "125% times the current measure." Multiplication by the factor 1.25 is rightly described as an increase.