If you want to make strategic decisions when it comes to real estate, it is very essential to understand the variations between super built-up, built-up and carpet area and those who know the difference are better off when compared to those who do not have a knowledge of it. When you have a detailed understanding of these real estate terminologies, you will not be overwhelmed when you face them.

When you are purchasing a home, you incur an expense for the number of square feet which you will be inhabiting. Hence, it is essential to know what you are paying for and for what purpose. This is where developers will make use of various terms like RERA Carpet Area, Carpet Area, Loading Factor, Built-Up Area, Super Built-Up Area and more. Therefore, in this blog, we have explained all those terms in a simpler manner through examples and formulae, so that you can understand them in the best way. An understanding of it will help you buy your dream home seamlessly and without any hassle.

What Does Carpet Area Include?

A carpet area is an area of the apartment which can be covered by the net usable area or by the carpet. This is inclusive of the areas in a living room, bedroom, bathrooms, kitchens and staircases, which are within a flat/house, and these are actual areas which can be covered by a carpet and be used. The carpet area is not inclusive of terraces, external walls, lifts, common areas, utility ducts, corridors, and more.

What Does RERA Carpet Area Entail?

In accordance with the RERA Act 2016, the RERA Carpet Area is considered to be the net usable floor area, which is of a house or apartment and it is excluded of common areas, external areas, veranda area, exclusive balcony and exclusive open terrace area but it is inclusive of the area which is covered by the internal partition walls.

It should also be noted that an exclusive veranda or balcony area is the area of veranda or balcony which is fixed to the net usable floor area, and it is for an apartment. In addition to this, it is also reserved for the complete use of the house owner. When it comes to the exclusive open terrace area, it is an area of the open terrace which has been attached to the net usable floor area, which is for an apartment, and it is reserved for the total use of the homeowner.

Difference Between Carpet Area and RERA Carpet Area

The only major difference between Carpet Area and RERA Carpet Area is the total thickness of the partition walls that are internal. In the general Carpet Area, the thickness of the internal walls is excluded, and in the RERA Carpet Area, it is included. Generally, the RERA carpet area is considered to be 5% more than the total general carpet area.

Calculation of RERA Carpet Area and Carpet Area

The calculation of the general carpet area can be done through a simple formula, which includes Carpet Area = (area of bedroom + living room + kitchen + toilets) - thickness of the inner walls. In a lot of cases, the carpet area in the apartment is 80% to 90% of the total area which has been built-up. The calculation of the RERA Carpet Area can be done by calculating the areas of the international partition walls + the net usable area of the apartment, which excludes the terrace area, external walls, veranda area and balcony area. Hence, there is a 5% difference between RERA Carpet Area and General Carpet Area.

What does Built-up Area include?

When it comes to the built-up area, it is an amalgamation of the carpet area and also of the area which has interior and exterior walls, an interior staircase, a balcony, and any other liveable areas. In addition to this, you can also include any type of additional exclusive terrace. The built-up area is inclusive of 70% to 80% of the super built-up area.

The built-up area is calculated by the addition of exterior and interior wall areas, corridor, exclusive balcony, and is to the RERA Carpet Area or the Carpet Area. Mostly, the built-up area is 10% to 20% in addition to the Carpet Area.

Difference Between Built-up Area and Carpet Area

When it comes to the RERA Carpet Area, it is calculated by the addition of the area of the living room, bedroom, toilets, kitchen and also by the thickness of the internal partition of the walls. With regards to the built-up area, it is the amalgamation of the external wall area, RERA carpet area, balcony or terrace and exclusive corridor. The built-up area is considered to be more than the carpet area, where there is negation of common areas like security room, lift, club house, lobby and more.

Super Built-up Area

This is known as the ‘saleable area’ where the home buyers are charged depending on its value. It is calculated through the sum of complete built-up areas and also other common areas, which is inclusive of corridors, lifts, clubhouse, staircase and various other amenities. But it does not include other areas of swimming pools that are open-to-sky, compound walls, driveways, parks, inaccessible garden areas, open sports facilities, underground sinks, play areas, septic tanks and water tanks. The share of this common area is regarded as the ‘Loading Factor’, where a percentage of it is assigned, and it ranges from 25% to 60% of the total carpet area. The calculation of the super built-up area is done by the addition of the common area and built-up area, where it can also be calculated in a different way by multiplying the carpet area by 1+ loading factor.

What does the Loading Factor include?

The Loading Factor is regarded as the difference between the carpet area and the super built-up area of the flat. This is made use of for the addition of constructed spaces, which is not exclusive to your home, and it is inclusive of the lobby, elevators, and various other amenities. In addition to this, the Loading Factor for the luxury apartments is less than 60%. If the value is above it, this implies that the super built-up area is higher and the carpet area is smaller. This further implies that the homebuyers would have houses that are smaller in size. With this value, they can make an informed and strategic decision about how much they are expending and for what purpose.

Difference between Super Built-up Area and Built-up Area

When it comes to the built-up area, it is inclusive of not only the carpet area but also the exclusive corridor, balcony, internal staircase, exclusive terrace, and the thickness of the walls. The super built-up area has not only a built-up area but also various common areas like common corridors, lifts, clubhouse, staircase, and various other amenities, and this is also known as the saleable area.

Prime Things to Consider for the Purchasers

It is important to lay emphasis on the carpet area because it showcases the usable space which is within the property. In order to know properly about the usable space, utilise the carpet area measurements and it is while in comparision with the various properties. It is important to understand the super built-up area and the built-up area, and be vigilant when it is listed by the builders because they also include the additional spaces. You should also ask for the ratio of the carpet area towards the super built-up areas and built-up areas, this is so that you can get a clear picture of the same. Analyse the cost per square foot and it is for the carpet area, while making any kind of home buying decision.

Documentation and Transparency for the Carpet Area and Super Built-up Area

One of the difficulties for the buyers is no standardisation when it comes to the measurement terminologies, which is at the real estate industry. Sellers and developers should reveal the super built-up area, carpet area, and various other specifications, which are in the sales documents. It is important for the buyers to analyse all of the legal documents and also the various floor plans so that there is maximum accuracy and transparency in the measurements which are declared.

Why are Super Built-up Areas used by the Builders?

All before RERA, there were builders who had quoted the property prices which were based on the super built-up areas, and this is because there were higher profit margins which made builders to upscale the price per unit area, and this was by including the shared space. There was also no regulation, and there was also a negative standard definition which was applied across all the developers. There was also buyers' ignorance, where a lot of purchasers were not aware of how much of the space would be used. The,n after RERA was introduced, the developers are obligated to sell their houses which is based on carpet area, hence making the prices more buyer-friendly and transparent.

Tips for Homebuyers

It is essential that while buying the home, you should ask the agent or the builder to share the total carpet area because it is the space which is actually used. You should also compare the ratio of super built-up area to the carpet area, where if the ratio of the carpet area is higher, then you will receive a better value for money. The carpet area ratio should be 65 % to 70 % higher than the super built-up area. It is important to read the sales agreement meticulously, where you need to inspect how the area has been defined. All of the agreements should essentially include the RERA-obligated carpet area distinctly. Ensure not to be attracted by the bigger numbers that are super built-up, because if the numbers are bigger, it does not mean that the house will be bigger. It is paramount to lay emphasis on usability.

How does Area Type Influence Functionality and Interior Design?

If there is a 1000 square feet flat that has a lot of usable carpet area, then it will be bigger and more spacious when compared to another flat with the same square feet but with a super built-up area that has bigger common areas. When there is systematic layout planning, which expands the carpet space, there is an upgrade in airflow, natural lighting, overall comfort and furniture placement. Therefore, an efficiency in design is far more better than a size that has been super built-up.

Tax and Legal Implications for Various Areas

It is important to know the various areas because it will assist in the stamp duty calculation, which is usually on the carpet area which is in the RERA states. The property tax depends on the plinth area or built-up area in various states. In addition to this, the resale and valuation will be on the carpet area, that gives in appropriate clarity in resale.

Myths to be Debunked

There is a common myth that if there is a super built-up area, it means a usable area, but the truth is that you will not be able to use the lift shaft or lobby but you will be paying for it. Another myth in the market is that if there is a huge super built-up area, it means a bigger flat, but the truth is that if there are two flats that have similar super built-up area, there can be different spaces usability. There is also a myth that the carpet area will include walls but as per the RERA, the carpet area does not include walls.

Variations in the Area Terminology according to Cities

In India, the terminology of real estate differs from place to place. For instance, in metro cities like Mumbai, the carpet area is quoted more when compared to others, and it is particularly in the SRA or redevelopment projects. When it comes to Bangalore, for pricing, super built-up areas are extensively used. In Delhi, both built-up and carpet areas are included, and the prices differ from builder and sector to sector. For tier-2 and tier-3 cities, there is a standard built-up area, but since RERA has become more prevalent, there is an increase in carpet area-based pricing.

How Can One Verify the Area Which has Been Claimed by the Builder?

Firstly, you should check up on the floor plans, where the architectural floor plans should be given in all kinds of dimensions. The calculation of the area of the particular room can be done manually in order to verify the carpet area. You should request the RERA certificate, where this document should reveal the carpet area because this abstains the developers from portraying any claims that are extensively exaggerated. In addition to this, you can utilise the area measuring tools like laser measuring devices or mobile apps during site visits so that the dimensions can be validated. You can also hire a civil engineer or architect when you are being involved in major investments, so that the area calculations can be verified and also so that you can avoid any expensive mistakes.

Impact on the Eligibility of Home Loan

When it comes to lenders, they evaluate the amount of the home loan depending on the property valuation and the carpet area. Some of the major aspects to be noted are that the NBFCs and banks lay emphasis on the properties which are in tune with the RERA norms, and this is inclusive of the precise details of the carpet area. If the super built-up area has been exaggerated by the builders, then the property value might have been upscaled, and there might be a delay in the granting of the loan. There might also be loan rejection or legal disputes if there is an inflation of the super built-up area or loading that has not been disclosed.

Hence, it is very important to understand the differences between built-up area, carpet area and super-built-up area so that your purchase of property is not only strategic but also smart. In the before years, since there was no proper clarity, there was a lot of misrepresentation and confusion with regards to the deals done in the real estate market. But since RERA has conveyed all the rules and regulations, the homebuyer has a lot of transparency in the property framework.

Hence, to recapitulate the above, the carpet area is to be focused on since this is what will be only used. The built-up area will include balcony and walls, and is only semi-useful and can be seen over for estimation. When it comes to the super built-up area, there is an inclusion of everything which you will be sharing with your neighbours, where this is not very useful for living in a practical way, but still, some developers include it in pricing. Also, there are some developers who utilise clever marketing like inflating the awareness of space, hence buyers should be aware of them.