What is RERA Carpet Area? Why It’s Important, How It’s Calculated?

When purchasing a property, one of the most common terms buyers come across is Carpet Area. However, with the introduction of the Real Estate (Regulation and Development) Act, 2016 (RERA), the concept of carpet area has been standardized to prevent discrepancies and ensure transparency in real estate transactions.

Understanding RERA Carpet Area is crucial for homebuyers to make informed decisions and avoid being misled by builders or developers. In this blog, we will explore what RERA Carpet Area is, its significance, and how it is calculated.

What is Carpet Area Under RERA?

Before RERA was implemented, different builders used different methods to define carpet area, leading to confusion and misrepresentation. To bring uniformity, RERA introduced a standardized definition.

Definition of Carpet Area as per RERA

According to Section 4 of the RERA Act, the carpet area is defined as:

“The net usable floor area of an apartment, excluding the area covered by external walls, areas under services shafts, exclusive balcony or verandah area, and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment.”

In simple terms, carpet area refers to the actual usable area inside the apartment, where a carpet can be laid. This does not include external walls, balconies, or terraces.

Importance of RERA Carpet Area

Understanding RERA Carpet Area is crucial for multiple reasons:

1. Eliminates Misleading Information

Before RERA, developers used terms like built-up area and super built-up area, which included walls, balconies, and even shared amenities, leading to confusion. With the standardized RERA Carpet Area, buyers now get clarity on the actual usable space.

2. Prevents Overcharging

Builders previously included common spaces (like staircases, lifts, and clubhouses) in the calculation of an apartment’s size, which led to inflated property prices. RERA ensures buyers pay only for the space they can use inside their homes.

3. Transparency in Pricing

Under RERA, property prices must be quoted based on the carpet area, ensuring standardized pricing and transparency. This allows buyers to compare properties more effectively.

4. Better Loan Approval Process

Banks and financial institutions also use RERA Carpet Area as a benchmark when approving home loans, ensuring that loan amounts are calculated based on the actual usable space.

5. Legal Protection for Homebuyers

Since builders must register their projects under RERA and disclose the carpet area, any discrepancies can be legally challenged. This provides better legal protection to buyers.

How is RERA Carpet Area Calculated?

The calculation of RERA Carpet Area is straightforward and follows a set formula:

Formula for Carpet Area Calculation

Carpet Area = Net Usable Area Inside the Apartment + Internal Partition Walls

This means:

  • It includes bedrooms, living room, kitchen, bathrooms, and internal passageways.
  • It excludes external walls, balconies, terraces, and common areas like staircases and lobbies.

Thus, the carpet area of this apartment is 704 sq. ft. If a builder claims the apartment size is 1,000 sq. ft, the extra 296 sq. ft would likely include walls, balconies, or common areas.

Difference Between Carpet Area, Built-Up Area, and Super Built-Up Area

Many homebuyers confuse Carpet Area with Built-Up Area and Super Built-Up Area. Let’s break it down:

1. Carpet Area

Includes: Net usable space inside the apartment + internal partition walls

Excludes: External walls, balconies, common areas

2. Built-Up Area

Includes: Carpet area + thickness of external walls + balconies

Excludes: Common shared areas like lobbies, staircases, and lifts

3. Super Built-Up Area (Commonly Misleading)

Includes: Built-up area + proportionate share of common spaces (lobbies, staircases, lifts, clubhouse, etc.)

Excludes: Nothing, as developers often add shared spaces to increase the size artificially

Key Takeaways for Homebuyers

  1. Always check the RERA Carpet Area before purchasing a property.
  2. Compare properties based on carpet area rather than built-up or super built-up area.
  3. Ensure the developer provides accurate details about the apartment’s carpet area as per RERA guidelines.
  4. Remember that property prices should be based only on the carpet area, not the super built-up area.
  5. If you find discrepancies in the stated carpet area after purchase, you can file a complaint under RERA regulations.

Understanding RERA Carpet Area empowers homebuyers to make informed decisions, ensuring they get the space they pay for. With RERA’s transparency rules, buyers can avoid misleading information and hidden charges by developers.

Before finalizing any real estate transaction, always verify the RERA Carpet Area to avoid overpaying for unnecessary spaces like balconies, common areas, and external walls. By doing so, you safeguard your investment and get value for your money.

Are you planning to buy a home soon? Make sure you check the RERA Carpet Area before making a decision

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