What is RERA Carpet Area Meaning: An Ultimate Guide

In the real estate industry, it is essential to understand the different terminologies associated with property measurements. One such term is the RERA Carpet Area, which holds significant importance for both homebuyers and developers.

This in-depth guide aims to help you understand the meaning, calculation, guidelines and impact of RERA Carpet Area, ensuring that you make informed decisions when buying or selling a property.

What is Carpet Area?

Before delving into the specifics of RERA Carpet Area, let's clearly understand what Carpet Area stands for in the realm of real estate. In simple terms, Carpet Area refers to the actual usable area within the walls of a property. It encompasses all the spaces that can be covered with a carpet. The carpet area does not include the area of common spaces or amenities.

The Carpet Area is measured from the inner walls, including the thickness of the interior partitions. It is crucial to note that the Carpet Area does not include the area of shared spaces among residents, such as staircases, lobbies, or recreational spaces and the thickness of the external walls.

What Is RERA Carpet Area?

RERA Carpet Area is a term devised under the Real Estate (Regulation and Development) Act, 2016. The carpet area as per RERA is an apartment’s net usable floor area, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah areas and exclusive open terrace areas, including internal partition walls.

The net usable area is the area that can be used for living space, excluding areas such as corridors, staircases, and lifts. The internal partition walls are the walls that divide the apartment into different rooms.

What is the Usable Carpet Area?

While the Carpet Area defines the usable area within the walls, the Usable Carpet Area goes a step further. It refers to the Carpet Area minus the space occupied by structural elements such as walls, columns, or shafts. It represents the area that can be efficiently utilized for various purposes.

The Usable Carpet Area takes into account the practical use of the property, excluding any restrictions imposed by structural elements that may limit the functionality of the space. Understanding the Usable Carpet Area helps homebuyers assess a property’s true usability and convenience.

What is the Difference Between the RERA Carpet Area and Carpet Area?

The key difference between the RERA Carpet Area and the conventional Carpet Area lies in their definitions and legal implications. While the usual Carpet Area is a broader term used in the industry, Carpet Area as per RERA is a specific requirement imposed by the regulatory authority.

The major difference between the RERA Carpet Area and Carpet Area is approximately 5%. Why so? This is because the RERA carpet area also includes the thickness of the house’s internal walls, unlike carpet area. The thickness of internal walls accounts for approximately 5%. Of course, this could vary slightly depending on the apartment’s layout.

Therefore, the Carpet Area as per RERA is typically 5% bigger than the usual carpet area. For example, if the carpet area of an apartment is 2000 sq ft, the RERA carpet area of the same apartment would be approximately 2100 sq ft.

How to Calculate RERA Carpet Area?

RERA Carpet Area is calculated by measuring the floor area within the inner walls of a property, excluding horizontal and vertical ducts that provide utility services. The thickness of the internal walls is included in the measurement, whereas the thickness of the external walls is excluded.

The formula to calculate RERA Carpet area:
RERA Carpet Area = Net Usable Area of the Apartment (excluding external walls, terrace, balcony and verandah) + Internal Partition Wall Areas.

The net usable area is the area that is actually usable by the apartment’s occupants. It excludes areas such as the external walls, terrace, balcony, and verandah, as well as the thickness of the internal partition walls.

The internal partition wall areas are the areas of the walls that divide the apartment into different rooms. These areas are included in the RERA carpet area because they are part of the actual usable space in the apartment.

For example, if the net usable area of an apartment is 100 square meters, and the internal partition wall areas are 10 square meters, then the carpet area as per RERA would be 110 square meters.

If you are still wondering how to calculate RERA Carpet area, you can also use an online RERA Carpet Area calculator to calculate it easily.

It is important to note that the calculation of RERA Carpet Area may vary depending on the specific regulations and guidelines set forth by the respective state's Real Estate Regulatory Authority.

Particulars to Keep in Mind While Calculating RERA Carpet Area

• The RERA carpet area is measured in square meters.
• The RERA carpet area should be mentioned in the sale agreement for the apartment.
• If the RERA carpet area is not mentioned in the sale agreement, you can ask the developer to provide it.
• If the developer does not provide the carpet area as per RERA, you can calculate it yourself using the formula above.

Impact of RERA Carpet Area

The introduction of the RERA Carpet Area has significantly impacted the real estate industry. It has enhanced transparency and consumer trust by ensuring buyers receive the exact liveable space they are promised.

The Real Estate Regulatory Act (RERA) mandates that all real estate developers in India must disclose the carpet area of their projects to home buyers. This has had several positive impacts on the real estate market, including:

• Increased transparency: RERA has made it mandatory for developers to disclose the carpet area in all their marketing materials, including brochures, websites, and advertisements. This has helped to increase transparency in the real estate market and made it easier for homebuyers to compare different projects.


• Fair pricing: RERA has also helped to ensure fair pricing in the real estate market. Since homebuyers now know the exact carpet area of the apartment they are buying, they are less likely to be overcharged.


• Protection of homebuyers' interests: RERA has also put in place several safeguards to protect the interests of homebuyers. For example, it requires developers to refund the excess amount paid by homebuyers if the carpet area is less than what was advertised.


• Improved quality of construction: RERA has also led to improved quality of construction in the real estate sector. This is because developers are now more accountable to homebuyers and are less likely to cut corners on construction.


• Clarity about the actual size of the apartment: The RERA carpet area is the actual usable area, excluding the space occupied by the internal walls, staircase, balcony, and other common areas. This gives homebuyers a clear understanding of the apartment size they are buying.


• Protection from misleading information: RERA mandates that developers disclose the RERA carpet area in all their marketing materials. This helps to protect homebuyers from misleading information about the apartment size.


• Refund of excess amount: If the actual carpet area of the apartment is less than the advertised carpet area, the developer must refund the extra amount to the homebuyer with interest.


• Improved quality of construction: RERA has led to improved quality of construction in the real estate sector. This is because developers are now more accountable to homebuyers and are less likely to cut corners on construction.

Before the implementation of RERA, buyers often faced challenges when it came to verifying the size and specifications of the property they intended to purchase. Developers often marketed properties based on ambiguous measurements, leading to misunderstandings and disputes.

However, with the introduction of the RERA Carpet Area, buyers now have access to reliable information to make more informed decisions. It provides a standardized measurement parameter that minimizes the risk of discrepancies and safeguards the interests of homebuyers.

Difference Between Saleable Area and RERA Carpet Area

Another comparison worth understanding is the difference between the Saleable Area and the RERA Carpet Area. While the RERA Carpet Area represents the actual liveable space, the Saleable Area refers to the total area, including the Carpet Area and proportional common areas.

The saleable area is the total area of the unit that is sold to the buyer, including the carpet area, the common areas, and a loading factor. The loading factor is a percentage of the carpet area used to account for the areas not exclusively used by the buyer, such as corridors, staircases, and lifts.

RERA carpet area is the area of the unit that is enclosed by the walls and is used for living space. It does not include the areas that are occupied by the common areas, the loading factor, or the thickness of the walls. Developers often base the pricing of properties on the Saleable Area, making it essential for buyers to be aware of this distinction.

The main difference is that the saleable area includes the common areas, while the RERA carpet area does not. This means the saleable area will always be larger than the RERA carpet area.

India’s Real Estate Regulatory Authority (RERA) mandates that all builders sell their units quoting the RERA carpet area. This is to ensure that buyers know the exact size of the unit they are buying and are not misled by the larger saleable area.

How do you calculate the saleable area? Well, you can use the following formula:
Saleable area = RERA carpet area + loading factor

The loading factor is typically around 15-20% of the RERA carpet area.

For example, if the RERA carpet area of a unit is 100 square feet, then the saleable area would be around 115-120 square feet.

By clearly understanding the difference between the Saleable Area and RERA Carpet Area, buyers can make better assess pricing and ensure they pay for the actual usable space they desire.

Difference Between The Carpet Area, Built-Up Area & Super Built-Up Area

Understanding the difference between Carpet Area, Built-Up Area, and Super Built-Up Area is crucial when evaluating a property's dimensions and functionalities.

As mentioned earlier, the carpet area represents the actual usable area within the inner walls of a property. It is the most practical measurement from a buyer's perspective.

The Built-Up Area, on the other hand, includes the Carpet Area and the thickness of the walls, columns, and other structural elements. It presents the total area that occupies the constructed space, including the non-usable sections due to the inclusion of the structural components.

Super Built-Up Area encompasses the Built-Up Area and proportionate common areas such as corridors, lifts, clubhouses, or any other shared amenities. It represents the total area that is distributed among various occupants of the property.

Understanding the distinction between these measurements helps buyers assess the efficiency and cost-effectiveness of a property, ensuring that they invest in spaces that truly meet their requirements.

For a Homebuyer – RERA Carpet Area Or Carpet Area?

Choosing between RERA Carpet Area and Carpet Area as a home buyer depends on your specific preferences and requirements.

The main difference between the RERA carpet area and the usable carpet area is that the RERA carpet area includes the thickness of the internal partition walls, while the usable carpet area does not. This means that the usable carpet area is typically smaller than the carpet area as per RERA.

The enclosed balcony is a technical term used in approvals, and it is considered a part of the room and is usable. However, under the definition of RERA carpet area, it is excluded. This means that the RERA carpet area may not accurately reflect the apartment’s actual usable space.

When comparing projects, it is advisable to check the usable carpet area, not just the RERA carpet area as it allows a better comparison of the actual space provided. Homebuyers can calculate the usable carpet area by measuring and totalling all the spaces inside their flat, excluding the thickness of the internal partition walls and any areas that are not considered usable.

How RERA is Helping Save Money?

The implementation of RERA, along with its specific requirements for Carpet Area as per RERA disclosure, has resulted in several advantages for buyers, including potential cost savings.

By having access to accurate Carpet Area measurements, buyers can compare the pricing of properties on an apples-to-apples basis. This allows them to identify the actual value of properties and ensures that they are paying a fair price based on the actual usable space.

Additionally, as RERA promotes transparency and prevents misleading marketing practices, buyers are less likely to incur unexpected expenses related to hidden costs or discrepancies in dimensions. This leads to greater financial security and eliminates the risk of additional financial burdens.

In this way, RERA serves as a protective mechanism that safeguards buyers' interests and contributes to potential savings during property transactions.

How does the RERA Carpet Area Affect the LTV Ratio?

The RERA carpet area affects the loan-to-value ratio (LTV) by increasing the property's value. LTV is a ratio of the loan amount to the value of the property. Lenders use it to determine the maximum amount of loan they can provide for a particular property.

The higher the LTV, the more loan you can get for a property. However, lenders typically have a maximum LTV they are willing to lend. This is because they want to ensure that they will be able to recover their loan amount if the borrower defaults on the loan.

The RERA carpet area is the actual usable area of a property, including the thickness of the internal walls. This is in contrast to the carpet area, which excludes the thickness of the internal walls.

A property's value is higher when it has a higher carpet area as per RERA. This is because the property has more usable space. As a result, you can get a higher LTV for the property.

However, it is important to note that lenders also consider other factors when determining LTV, such as the property's location, the type of property, and the borrower's creditworthiness.

Let's understand with an example.

Suppose you are buying a property with a carpet area of 1000 sq ft. The RERA carpet area of the property is 1050 sq ft.

The value of the property is calculated based on the carpet area as per RERA. This means the property is worth more than it would be if the carpet area were not calculated using RERA guidelines.

As a result, you can get a higher LTV for the property. For example, if the lender has a maximum LTV of 80%, you may be able to get a loan of up to Rs. 840,000. However, if the carpet area of the property was not calculated using RERA guidelines, you may only be able to get a loan of up to Rs. 800,000.

It is important to note that the LTV you are offered will also depend on your creditworthiness and the other factors mentioned above.

What to do in Case of Injustice?

Despite the regulatory framework, instances of injustice or non-compliance may still arise. In such situations, buyers must know their rights and take appropriate action to seek resolution.

If you discover any discrepancy or false information regarding the Carpet Area of a property, it is advisable to contact the respective state's Real Estate Regulatory Authority. They can guide you on the necessary steps, including filing a complaint and seeking redressal.

Furthermore, to ensure that your interests are protected, it is always recommended to engage legal advice. An experienced real estate lawyer will have the expertise to navigate legal complexities and help you seek justice.

Penalty against Developers or Builders for False Information

RERA authorities take non-compliance and false information dissemination seriously. Penalties and consequences are put in place to deter developers from misleading buyers or failing to adhere to the prescribed guidelines.

Under Section 61 of the Real Estate (Regulation and Development) Act, 2016 (RERA), a developer or builder who provides false information regarding the RERA carpet area is liable to pay a penalty of 5% of the project’s estimated cost.

The penalty for providing false information about the RERA carpet area is intended to deter developers from misleading homebuyers. Homebuyers need to be aware of this penalty so that they can take action against developers who violate the RERA Act.

Here are some of the other penalties that can be imposed on developers for providing false information under the RERA Act:

• Imprisonment for up to three years


• A fine of up to 10% of the estimated cost of the project


• A ban on the registration of new projects


• A ban on the sale of units in existing projects

Such stringent measures ensure that developers prioritize accurate and transparent disclosures, reinforcing the trust and confidence of buyers in the real estate market.

Latest Update on RERA Carpet Area

• In February 2023, the Supreme Court ruled that the RERA carpet area must be calculated on the basis of the actual measurements of the apartment, rather than the developer's plans.


• In March 2023, the Ministry of Housing and Urban Affairs (MoHUA) issued a circular clarifying that the RERA carpet area does not include the area of balconies, verandahs, and open terraces. This clarification is intended to ensure that buyers are not misled about the actual size of the apartment they are purchasing.


• In April 2023, the MoHUA also issued a circular setting out the guidelines for measuring the RERA carpet area. These guidelines are intended to ensure that the carpet area is calculated consistently and transparently.

Conclusion

Understanding the meaning, calculation, and impact of RERA Carpet Area is essential for anyone interested in buying or selling property in India. The introduction of the RERA Carpet Area has revolutionized the real estate industry by promoting transparency and ensuring accurate disclosures.

With standardized measurements, buyers can now make informed decisions and avoid potential disputes. It is imperative to differentiate between the Carpet Area as per RERA and other measurements to assess a property’s true usability and value.

By embracing the regulations imposed by RERA and understanding the nuances of RERA Carpet Area, homebuyers can confidently navigate the real estate market, ensuring that they invest in properties that align with their requirements.

FAQs

What is the RERA Carpet area definition?

The RERA carpet area is the net usable floor area of an apartment, excluding the area covered by the external walls, areas under service shafts, entire balcony or verandah areas, and exclusive open terrace areas. It also includes the area covered by the internal partition walls of the apartment.

Is balcony included in carpet area?

No, the carpet area does not include the area of balcony.

Does carpet area include bathroom?

Yes, the carpet area includes the bathroom.

Can developers manipulate the RERA Carpet Area measurements?

Yes, developers can manipulate the RERA Carpet Area by including areas that are not part of the actual living space, such as balconies, verandas, and car parking spaces or by using a smaller measurement unit, such as centimetres instead of meters or by excluding areas that are required to be included, such as common areas and staircases.

What is the difference between carpet area and RERA carpet area?

The major difference between carpet area and RERA carpet area is the thickness of internal walls, which is included in the RERA carpet area but not in the carpet area. This means the RERA carpet area is typically 5-10% larger than the carpet area.