Most of the home buyers are not aware of real estate terms like what is the difference between carpet area built-up area and super area. When I decided to buy a 2 bhk flat, I was looking for a flat of a size of approx 1200 Sqft area and were also told that this size would be ample for me and my family. But when I recently visited my flat I felt that it was quite small wasn’t looking like a flat of 1200 Sqft area so we enquired the agent and came to know that 1200 sqft area was saleable area and the area which we got was to use was only of 720 Sqft. and in fact, we were charged also for this saleable area only. We really felt cheated but couldn’t do anything.
We all know that home buying is not an easy job, it takes lots of efforts, time and research to find that single project that fits into your every aspect and top of that all your hard earned money is also invested so what I feel is that like we got cheated other should not suffer.
If you have ever gone for property hunt you must have heard of some of these terms like Saleable area/ Super built-up area, carpet area, loading area, built-up area etc. These terms are used to describe the size of your apartment. So what these terms actually mean and how these terms really matter when you are out for buying a property.
Details about all these Real estate Terms
1) Carpet area
In a very Simple term Carpet area is the area within a flat where a carpet is laid or can say total floor area inside an apartment (inner wall to inner wall) which is available for actual use. This area includes all the bedrooms, living room, kitchen and bathrooms. Point to be noted this area doesn’t include utility area and balcony area (After RERA Act)
2) Built-up Area– This is the Total Size of your Flat which includes the carpet area along with the thickness of wall, balconies and utility area. Built-up Area is an addition of 25 to 35 % to the carpet area.
Built-up area = Carpet area + Thickness of inner walls + Area of the balcony.
3) Super Built-up or Saleable area
Super Area is the most common term or can say builder’s favourite term. This area is calculated by the addition of Built up area and the common area like lobbies, lift, staircase etc in some case builder also include amenities like the common area, club, garden and pool. The builder used to sell flats based on this area only.
Super built-up area = carpet area + Built-up area + Common area (lobbies, staircase, lift area etc).
Suppose you have a 2 bhk flat of approx 1185 sqft
Saleable area = 1185sqft
Built-up area = 949sqft (approx)
Carpet area = 711 Sqft (approx).
Prior to RERA Act builder used to charge for an apartment based on Saleable Area (Super built-up area), without even clarifying to its customers about how this area is calculated. Most of the Builders used to add on an average of 30 to 40% of the carpet area to get the super built-up area and builder has their own reason for charging on saleable Area as he has to include the cost of construction of all common area which includes lobbies, staircase area, lifts, corridor, parking space, clubhouse, pool, sports court etc. and on top of that the Civic bodies, instead of stopping their false behavior supported this illogical move, the simple reason for this could be, to get the higher property tax, considering super built-up area. In fact in most of the sales deed If you have seen the only super built-up area was mentioned, the reason for this simply to get the higher registration charges and stamp duty.
But Thanks to the Government for introducing Real Estate( Regulation and Development) Act or RERA Act, which has made it compulsory for the builder and developers to mention the carpet area of each flat and builder can quote the selling price only on carpet area( net usable area) only.
Finally a big relief for buyers.
How RERA ACT has changed the definition and calculation.
As per RERA, the carpet area is the actual net usable area of a flat excluded by the area covered by balconies, utility area, external wall, area under shafts.So if you have made a purchase after RERA Act then you all are the luckiest one as this could save approx of 3 to 5 lacs of yours. This Act is also regulated on the ongoing projects so the builder who had earlier offered sale prices based on super-built-up area is now forced to offer sale prices based only on carpet area.
Let’s understand this whole concept with an Example
Prior to RERA Act
A simple 2 bhk Flat of size 1300 Sqft (super Built up area) and BSP (Basic Selling Price) 3800, then the basic price would be Rs. 49, 40,000.
But Under the Guidelines of RERA,It is compulsory for the builders to mention the carpet area and can charge only for the net usable area.The carpet area of the same flat is 948 Sqft and built-up area is of 1221 Sqft. then for the same flat one has to pay Rs. 46, 39,800. Thus for the same flat, the builder was charging 3 lacs extra. This is not the end, in fact, those who booked the flat before RERA, he had to pay a higher tax, stamp duty and registration charges for the property.
This example shows how RERA is bringing transparency in real estate deals and safeguards the interests of customers.
How definition of Carpet Area changed after RERA and what would be its impact.
As per RERA, carpet area is defined as ‘the net usable floor area of an apartment exclusive of the balcony, open terrace, external wall, the area under shafts etc. But internal walls are part of the carpet area only. Now the balcony area will not be part of it even it is an exclusive balcony of a flat. Now buyers will get to know the exact measurement of his flat and this will help him in taking proper decision. Earlier builder used to include balcony space, void space, and terrace within the meaning of carpet area but RERA has put an end to this. Good design and efficiency will now become important for developers as, an inefficient design, which used too much of common area space, would fare the same as a good design, as both could have the same super built-up area, but different carpet areas.
Buyers have a feeling that after this the property rates will certainly go up as the total price will be divided by the lower denominator. But nevertheless, at least now customer will have an exact idea of what they are getting. Now buyers won’t get 777 Sqft apartment while thinking they have purchased a 1100 Sqft apartment.