Carpet Area

Carpet area refers to the actual usable area within a property that can be covered by a carpet, meaning the space available for a resident’s use. It is the part of an apartment or building that excludes the thickness of inner and outer walls, common areas, balconies, and other non-usable spaces. In real estate terminology, the carpet area is the net usable floor area of a property and is a key metric for buyers and developers alike, as it directly determines the functional living space.
The term gained legal importance in India under the Real Estate (Regulation and Development) Act, 2016 (RERA), which standardised property measurements and made carpet area the official basis for pricing residential units.

Definition and Meaning

According to Section 2(k) of the RERA Act, 2016, carpet area is defined as:

“The net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area, and exclusive open terrace area, but including the area covered by the internal partition walls of the apartment.”

In simpler terms, carpet area includes:

• The area of bedrooms, living rooms, kitchens, bathrooms, and internal corridors within the apartment.
• The thickness of internal partition walls between rooms.

It excludes:

• External walls.
• Balconies, verandas, and terraces.
• Common areas such as lobbies, lifts, staircases, and clubhouses.
• Shafts and ducts for services like plumbing and electrical systems.

Formula for Carpet Area

Carpet Area = Built-Up Area – (Area of Walls + Balcony Area + Utility/Service Areas)
For example, if a flat has a built-up area of 1,200 sq. ft., walls occupy 150 sq. ft., and balconies take up 100 sq. ft., then:
Carpet Area = 1,200 – (150 + 100) = 950 sq. ft.
Thus, the buyer effectively gets 950 sq. ft. of usable space.

Components Included in Carpet Area

The carpet area includes the following internal sections of a flat:

• Bedrooms, dining and living rooms.
• Bathrooms and toilets.
• Kitchen and storage areas.
• Internal staircases (if any within the apartment).
• Internal walls dividing rooms.

These spaces represent the actual area available for furnishing and day-to-day use.

Components Excluded from Carpet Area

Carpet area does not include:

• External and structural walls.
• Balconies, verandas, and terraces.
• Common facilities (lift lobbies, corridors, parking areas).
• Utility ducts and service shafts.
• Garden areas or open spaces outside the flat.

This distinction ensures that homebuyers are charged only for the usable space within their ownership, not for areas shared collectively or structurally.

Comparison with Built-Up Area and Super Built-Up Area

Under RERA, builders are legally required to quote property prices based only on carpet area, thereby preventing misleading pricing based on inflated built-up or super built-up areas.

Importance of Carpet Area

• Transparency in Real Estate Transactions: Standardising the definition prevents developers from misrepresenting property size.
• Fair Pricing: Buyers pay only for the actual usable space rather than for non-accessible common areas.
• Accurate Valuation: Enables realistic comparison of properties by providing uniform measurement standards.
• Legal Protection: RERA mandates developers to clearly disclose the carpet area in all sale agreements and advertisements.
• Tax and Loan Assessment: Financial institutions and municipal authorities often use carpet area as a basis for property valuation and tax computation.

Carpet Area in RERA Regulations

Under RERA:

• The price of a property must be clearly stated based on the carpet area (₹ per sq. ft.).
• Any change in carpet area during construction (up to ±3%) must be adjusted in the final price and documented with the buyer’s consent.
• Developers must provide a floor plan showing detailed measurements of the carpet area for every unit.

This ensures accountability and protects buyers from unfair pricing practices prevalent before the Act.

Example

Suppose a builder advertises a flat with:

• Built-up area: 1,200 sq. ft.
• Super built-up area: 1,500 sq. ft.
• Carpet area: 900 sq. ft.

Earlier, buyers might have been charged based on the super built-up area (₹10,000 × 1,500 = ₹1.5 crore).Under RERA, the charge must be based on the carpet area only (₹10,000 × 900 = ₹90 lakh).
Thus, the regulation ensures that property pricing is fair and based on actual usable space.

Distinction Between Carpet Area and Saleable Area

Before RERA, builders often sold flats based on saleable area or super built-up area, which included a proportionate share of common facilities like lifts, clubhouses, and corridors. This often inflated the total area and misled buyers about the actual living space.
Post-RERA, such practices have been curtailed, and carpet area has become the single standard metric for property sale calculations.

Relevance in Property Valuation and Design

Architects, builders, and buyers use the carpet area ratio to evaluate the efficiency of a building’s design.
Efficiency Ratio = (Carpet Area ÷ Super Built-Up Area) × 100
A higher efficiency ratio indicates better space utilisation. For residential projects, an efficiency ratio of 60–70% is considered good, meaning 60–70% of the total area is usable.

Legal and Financial Implications

• Legal Contracts: Sale agreements must explicitly mention the carpet area. Any variation may lead to compensation or cancellation rights for the buyer.
• Home Loans: Banks and housing finance companies assess the loan amount and property value based on carpet area.
• Property Taxes: Some local authorities calculate property tax on the basis of carpet area to ensure uniformity.

Advantages for Buyers

• Ensures clarity and fairness in property dealings.
• Facilitates accurate budgeting by understanding the real usable area.
• Encourages accountability from developers under RERA supervision.
• Provides better comparability across projects and builders.