The End of Area-Related Confusion
Before the implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA), one of the most common grievances among homebuyers was paying for a spacious 1,500 sq. ft. apartment but receiving a flat that felt significantly smaller. This happened because builders heavily marketed and priced properties based on the ambiguous "Super Built-up Area."
RERA brought an end to this malpractice by strictly standardizing the definition of usable space and mandating that property sales must be based solely on the "Carpet Area."
What is Super Built-up Area?
Prior to RERA, the Super Built-up Area (often called the "saleable area") was the metric developers used to calculate the total cost of a flat.
- What it includes: It includes the actual usable area of the flat, plus the thickness of the walls, balconies, and a proportionate share of the building's common areas—such as lobbies, staircases, lift shafts, clubhouses, and corridors.
- The Problem: Because there was no standardized formula for calculating the proportionate share of common areas, builders frequently inflated the Super Built-up Area. A buyer could end up with a "loading factor" of 30% to 40%, meaning they paid for 1,500 sq. ft. but only received 1,000 sq. ft. of actual living space.
RERA’s Strict Definition of "Carpet Area"
To eliminate deception, Section 2(k) of the RERA Act clearly defines "Carpet Area" as the net usable floor area of an apartment.
What is INCLUDED in RERA Carpet Area?
- The actual net usable floor space where you can lay a carpet.
- The thickness of the internal partition walls of the apartment.
What is EXCLUDED from RERA Carpet Area?
- The thickness of the external walls.
- Service shafts (e.g., plumbing or electrical shafts).
- Exclusive balconies or verandahs (even if they are attached to your flat).
- Exclusive open terrace areas.
By explicitly excluding external walls and balconies, RERA ensures that buyers know the exact square footage of the living space they are purchasing.
The Legal Mandate: Selling Only by Carpet Area
Under RERA guidelines, it is illegal for a developer to quote property prices based on the Super Built-up Area. The Builder-Buyer Agreement must clearly state the exact Carpet Area of the apartment.
If the developer wishes to highlight the balcony or terrace, they must state their areas separately in the agreement, but the primary property pricing and registration must be anchored to the RERA Carpet Area.
Homebuyer Remedies for Area Discrepancies
RERA anticipates that minor changes might occur during construction, but it severely penalizes builders who shortchange buyers.
- If the Carpet Area decreases: The builder must refund the excess money collected from the buyer within 45 days (with interest). This refund is calculated at the exact per-square-foot rate mentioned in the agreement.
- If the Carpet Area increases: The builder can demand additional payment from the buyer, but RERA caps this permissible increase at a maximum of 3% of the initially promised carpet area. Any increase beyond 3% cannot be charged to the buyer.