Decoding Real Estate Jargons: Carpet, Built-up, and Super Built-up Areas.
The Real Estate (Regulation and Development) Act (RERA), 2016, was introduced to safeguard homebuyers' interests and bring transparency to the real estate sector in India. RERA sets guidelines for the timely completion of projects, maintains fairness in property transactions, and ensures the accountability of builders. A key component of RERA is its regulation on the definition and disclosure of property areas, helping buyers understand exactly what they are paying for.
Key Areas to Understand: Carpet Area, Built-up Area, and Super Built-up Area
1. Carpet Area: Under RERA, the carpet area is clearly defined to avoid any confusion between buyers and builders. Carpet area refers to the net usable floor area of an apartment, excluding the areas covered by external walls, areas under services shafts, exclusive balcony or verandah areas, and open terraces. Essentially, it is the area inside your apartment where you can lay a carpet.
Inclusions:
· Area within internal walls of the apartment
· Kitchen, living room, bedrooms, bathrooms, etc.
Exclusions:
· External walls
· Balconies, terraces, and verandahs
· Areas under service ducts or shafts
RERA mandates that builders must declare the carpet area separately in sale agreements, ensuring transparency and preventing any manipulation of space-related charges.
2. Built-up Area: Built-up area includes the carpet area along with the thickness of the apartment's internal and external walls, and any attached balcony, terrace, or veranda. This is generally 10-15% larger than the carpet area. While the built-up area adds more space visually, not all of it is usable in terms of livable square footage.
Inclusions:
· Carpet area
· Thickness of internal and external walls
· Balconies, terraces, and verandas (if they are part of the unit)
Exclusions:
· Shared areas like staircases, elevators, lobbies
3. Super Built-up Area: The super built-up area, often referred to as the "saleable area," takes into account the built-up area of the apartment plus a proportionate share of common amenities in the building or project. These amenities include shared areas like corridors, lobbies, staircases, lifts, and sometimes even clubhouses or swimming pools. Many builders earlier misrepresented the size of the apartment by quoting the super built-up area, which includes space that isn’t entirely usable by the buyer.
Inclusions:
· Built-up area
· A share of common areas (lobbies, lifts, staircases, etc.)
· Shared amenities (gym, clubhouse, pool)
Exclusions:
· External or public spaces not exclusive to the building
Importance of RERA in Defining These Terms
Prior to RERA, many buyers were misled by inflated super built-up areas and were often unaware of the actual livable space they were getting. RERA has standardized the definition of carpet area to avoid this, compelling developers to provide clearer information and ensuring that the buyers are charged only for the usable area of the apartment.
In conclusion, RERA has created a more structured approach to real estate transactions, where carpet area is now the benchmark for calculating property prices, thereby offering buyers a transparent and accurate understanding of what they are paying for. Understanding these distinctions between carpet area, built-up area, and super built-up area can help you make informed decisions when purchasing property.
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