The Real Estate (Regulation and Development) Act 2016 (RERA) has brought accountability and transparency to Indian real estate by standardising carpet area – the actual usable space within an apartment. Unlike built-up areas, RERA carpet areas give homebuyers clarity on the exact area they get for their money. This guide explains carpet area vs built-up area to assist in informed property decisions. Whether you are looking to buy, rent or construct a house, read on to gain clarity on what RERA carpet area means and how to calculate carpet area before your real estate investment.
What is the RERA Carpet Area?
When purchasing real estate in India, one of the most vital concepts for prospective homeowners to understand is the RERA carpet area meaning. The term “RERA carpet area”, defined by the Real Estate (Regulation and Development) Act of 2016, relates to the tangible space an interested buyer can employ within an apartment or building.
The RERA carpet area does not include areas occupied by external walls, areas beneath service shafts, exclusive balcony or veranda areas, and exclusive open terrace areas. Therefore, as per RERA, the carpet area will only account for the usable area within the four walls if a building has 2 BHK apartments with a balcony and terrace. Lobbies, staircases, and lift shafts will not be counted as well.
This important difference arises when comparing the carpet area as per RERA and the built-up area. The built-up area includes areas under amenities like stairs, elevators, lobbies, etc., and the thickness of internal and external walls. So, for instance, if a 2 BHK measures 1,200 square feet of built-up area, its actual carpet area, as per RERA norms, may only be 1,000 square feet because the external wall thickness and balcony area are excluded.
RERA regulations require developers to indicate the carpet and > clearly. This affords purchasers transparency and enables them to appraise the usable space they will receive in exchange for their investment with precision. When purchasing any property, always verify the carpet area as per RERA rather than going by just the built-up area to avoid surprises later.
Related: Key Differences: Carpet Area, Built-Up Area, And Super Built-Up Area
Importance of RERA Act 2016
RERA, or the Real Estate (Regulation and Development) Act of 2016, has significantly transformed the real estate industry in India. The following are several pivotal attributes that underscore the significance of this legislation:
Promotes Transparency and Efficiency
- Promoters are obligated to register and disclose various project details, including but not limited to layout plans, approvals, and timelines. This provides essential transparency.
- To increase efficacy, promoters must hold 70% of project funds in dedicated bank accounts.
Safeguards Homebuyer Interests
- Grants purchasers access to information and timely updates regarding their investments.
- Builders must obtain the consent of two-thirds of the allottees before implementing significant alterations.
- Provisions for incarceration and severe penalties to safeguard consumers against fraud.
Boosts Investor Confidence
- Adequate vetting before project registration serves to bolster credibility.
- A specialized expedited dispute resolution mechanism instils confidence in investors.
- A five-year period of liability for defects and a provision for unambiguous title inspire confidence.
Brings Accountability
- Regulatory authorities at the state level diligently oversee real estate developments.
- Quality construction and timely completion are the responsibility of the builder.
- Additionally, agents fall within the purview of assuring overall accountability.
What Is the Difference Between the Carpet Area and the RERA Carpet Area?
Homebuyers should be well-informed about the RERA carpet area and the standard carpet area as two critical metrics when evaluating properties. Though they may sound similar, the two have some key differences.
“Carpet area” generally indicates the overall usable space within the apartment’s boundaries. Additionally, the area occupied by internal partition walls is accounted for. Thus, the carpet area in a building with 2 BHK buildings will encompass the space beneath the interior walls of each building. Exclusions include exterior walls, balcony areas, and common areas such as stairwells, lifts, and lobby spaces.
On the other hand, the RERA carpet area refers to the functional space, exclusive of internal wall areas. Simply put, it refers to the area of the building that is physically covered by the carpet that may be laid wall-to-wall. Therefore, if the carpet area of a 2 BHK building is 900 square feet, its RERA carpet area may be approximately 855 square feet (5% less) due to the subtraction of internal wall thickness.
The main difference between the two is whether the internal wall area is incorporated or excluded from the calculation of carpet area versus the RERA carpet area. While both provide a feeling of useable space, the RERA carpet area gives buyers a precise idea of the area they may use within a flat for their furnishings, carpets, etc. Therefore, it is beneficial to closely evaluate both metrics instead of solely relying on built-up areas to prevent unpleasant surprises concerning actual utilisation in the future. To determine the RERA carpet area you can truly use when visiting the site to view model buildings, subtract 5–10% of the carpet area.
RERA Carpet Area Formula
The RERA carpet area formula for calculating this critical metric is as follows, in accordance with RERA regulations:
RERA Carpet Area = Net Usable Area of the Apartment + Internal Partition Wall Areas
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How to Calculate the RERA Carpet Area?
The RERA carpet area is a crucial metric prospective homeowners utilise to determine the amount of usable space a given property possesses. To calculate carpet area, the formula is:
RERA Carpet Area = Net Usable Area of the Apartment + Internal Partition Wall Areas
Net Usable Area refers to the area within a building’s four walls that do not include the exclusive balcony area, exclusive terrace area, or exclusive open verandah area. Any external walls are also excluded from this.
Measuring this net usable area contained within the internal partition walls is the initial step in determining the RERA carpet area. To calculate carpet area, deduct the area occupied by the internal partition walls.
For example, if a 3BHK apartment in a building has a net useable area of 1,100 square feet and internal partition walls take up 100 square feet, the RERA carpet area is 1,100 + 100 = 1,200 square feet.
An easy way is to use online RERA carpet area calculator tools. Simply enter the square feet to the carpet area calculator, and the RERA carpet area will be calculated automatically in accordance with statutory requirements. RERA carpet area calculator provides buyers with an accurate assessment of the potential for utilisation. RERA guidelines can be used to determine the manual carpet area calculation by requiring the measurement of partition wall area and net usable area before their addition.
Therefore, for optimal transparency, use the RERA carpet area formula the next time you calculate carpet area before buying. In general, this quantity exceeds the standard carpet area by 5%.
Difference Between RERA and MOFA Carpet Area
Homebuyers should be aware that the RERA carpet area and MOFA (Maharashtra Ownership Flats Act) carpet area are two distinct area definitions.
The term “MOFA carpet area” encompasses the complete enclosed floor area of an apartment unit in a building, including the balcony and the region enclosed by exterior walls. Therefore, the MOFA carpet area of a 2BHK apartment in a building with a physical floor area of 1,200 square feet and a 100 square feet balcony would be 1,200 square feet.
On the other hand, the RERA carpet area strictly excludes the exclusive balcony area, exclusive terrace area, and the area occupied by any external walls. Therefore, the RERA carpet area would be limited to 1,000 square feet for the identical 2 BHK apartment in a building, assuming the walled-in usable area is 1,000 square feet and the balcony area is 100 square feet.
With regard to regulation, MOFA places greater emphasis on workmanship, construction material quality, and structural integrity. RERA adopts a broader perspective by regulating timely completion, quality assurance, and client interest protection via disclosure of project details.
So, while MOFA has helped enhance construction requirements over the years, RERA adds greater transparency to usable space. Homebuyers can learn more about a property by evaluating the MOFA and the RERA carpet area. Buyers can precisely assess the potential for space utilisation using the carpet area as per RERA.
Importance of RERA Carpet Area
Transparency on Actual Usable Area
The carpet area, as per RERA, provides prospective homeowners with complete visibility into the precise enclosed space that can be utilised for furnishings and interiors in any apartment. The net saleable area within a flat or unit is accurately represented by excluding the balcony, exterior walls, and common areas. RERA requires developers to base their pricing on the RERA carpet area rather than the super built-up area, which frequently inflates expectations. Establishing a connection between price and actual usable carpet area fosters accountability.
Safeguarding Buyer Interests
During the construction of buildings, substantial area changes frequently occur in properties still under construction. Post-possession, RERA regulates discrepancies between the committed and final carpet area to safeguard the interests of purchasers. In addition to interest, developers are obligated to provide a proportional refund or adjustment of the price difference within 45 days if the actual saleable area upon possession is less. This protects customers from unpleasant shocks caused by shrinkages in the apartment’s useable space compared to what was initially committed.
The carpet area, as per RERA, establishes transparency around saleable areas by introducing such regulations around usable spaces, allowing for informed property purchase decisions. It is crucial to assess investments by considering the precise carpet area.
Bottom Line
When selecting a residence, it is critical to have a clear understanding of the carpet area in accordance with RERA regulations. As a prominent developer in Mumbai with more than 35 years of experience, AsmitA India Reality ensures that RERA carpet area specifications, property requirements, and construction quality standards are strictly adhered to. Prior to investment, we provide complete clarity on property areas, pricing, and construction obligations in an effort to maintain a customer-centric approach.
Our commitment to ethical, legal real estate development based on the RERA carpet area is demonstrated by our track record of quality construction, regulatory compliance, and client satisfaction. So, if you’re looking for a RERA-registered property in Mumbai with a clear saleable carpet area, go no further than AsmitA India Reality!
Frequently Asked Questions
What is included in the RERA carpet area?
The RERA carpet area includes only the net usable area enclosed within the walls of an apartment/unit. Areas occupied by internal partition walls are also included. Any external walls, balcony, terrace, staircase, lift, lobby and other common areas are excluded.
How is the RERA carpet area different from the super built-up area?
The super-built-up area includes load-bearing walls, external walls, lobbies, lifts and other common areas. So, it is usually 15-30% more than the actual usable RERA carpet area.
What happens if there are changes between the promised and actual carpet area?
RERA protects buyers against major area deviations. If the final area is lower, developers must refund/adjust prices within 45 days. Any increases are capped at 3% of the originally promised RERA carpet area.
