Navigating India's real estate market involves complexities such as dealing with varied definitions of property size. Terms like carpet area, built-up area, and super built-up area are often confused, causing buyer uncertainty. The RERA Act 2016 defines carpet area as the net usable floor area, excluding external walls but including internal walls. Built-up area adds external walls and other structures, while super built-up area includes shared spaces. Despite RERA's emphasis on carpet area disclosure, sale and resale agreements often use other metrics, necessitating caution. Buyers should rely on RERA carpet area for comparisons, factoring in balconies, terraces, and parking for accurate valuation.
Navigating the Indian real estate market is daunting for most. It involves dealing with multiple stakeholders, sifting through information from numerous sources, and, at times, relying on semi-trained professionals for advice and guidance. While the RERA Act has made commendable strides in standardisation, accountability, and verification, we still have a long way to go.
In India, it is common to find multiple explanations or definitions for the size of a real estate property. The terms "carpet area," "built-up area," "super built-up area" and "saleable area" are often used interchangeably, confusing the actual size and usability of a property. As a buyer, this can feel overwhelming, leading to misunderstandings, misinformed decisions, and financial discrepancies.
The RERA Act 2016 defines carpet area as the net usable floor area of an apartment, excluding the area covered by the 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. Simply put, it refers to the usable area of an apartment plus the area occupied by internal walls.
Built-up area refers to the useable area of an apartment plus the area covered by external walls, flowerbeds, service shafts, dry balconies, etc. It is usually 15-30% more than the carpet area. For example, if the carpet area of a flat is 1,000 square feet, the built-up area will usually be between 1,150 to 1,300 square feet. The super built-up area, also known as the saleable area, refers to the built-up area plus a proportionate share of the common areas of the residential complex.
Although the RERA Act has made it mandatory for builders to display only the carpet area of the flat, it is common to find built-up area and saleable area references in brochures, MOUs and sale agreements. In the case of re-sale, currently not covered under the RERA Act, most property documents only mention the built-up or super built-up area of a property. In commercial real estate, it is more common to discuss a property in terms of useable or lockable area rather than carpet area. Therefore, it is important to understand how to differentiate between these definitions.
For informed decision making, its bodes well for to refer to the RERA carpet area of a property as a standard unit of measurement while comparing more than one option. For a buyer, it is best to divide the quoted sale price by the RERA carpet area of the property to arrive at the most comparable measurement. In the case of re-sale flats where the RERA carpet area might not be clearly defined, it is best to measure the actual carpet area of the property with the help of an expert.
Apart from the carpet area, factors such as attached balconies, decks and terraces must be considered. If the property has an attached balcony, one should add about half the measurable area of the balcony to the total carpet area of the unit. In the case of terraces and open decks, about one-third of the area of the terrace or deck must be added to the carpet area of the unit. This difference being that most balconies provided are covered whereas terraces and decks tend to be open to the sky. Doing so will help you arrive at the most precise measurement of the property and offer the most realistic understanding of the useable space available. Apart from this, parking slots provided with the unit might impact the final quoted price.
Understanding the differences between carpet area, built-up area, super built-up area, and saleable areas are essential for making sound and intelligent real estate decisions. With standardized definitions and a clear grasp of the implications tied to each term, buyers can better evaluate their investments and avoid potential pitfalls. In an ever-evolving market, this knowledge empowers stakeholders to navigate transactions with confidence, ensuring greater transparency and fairness in property dealings.
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