Carpet area should only be considered for calculating the final price, so that a buyer will get to know how much He/she is paying for the each sq. foot that will get to use.
Typically, most developers sell apartments on the basis of super built-up area. Carpet area is usually 25-35% lower. For instance, if an apartment is said to be the size of 1,500 sq. ft, the actual usable area, or the carpet area, will be 975-1,125 sq. ft.
lets talk about the Jargon first.
Carpet Area – It means 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 includes the area covered by the internal partition walls of the apartment.
Built-up area (Loading) – It is the area in and around the flat that is not usable, and is separate from the carpet, or usable area of the flat. Built-up area includes walls, balconies, and in certain cases the common passage used by owners of different flats on the same floor.
Common Area – Lobby, Lift, Stair Case, Club House, etc. These are the areas which are considered under the ‘Common Area’ Tag. Common Areas are different for different projects or builders, you should check up with your Builder before buying.
Built-Up Area + Common Area = Super Built-Up Area
Super Built-Up Area is also called the Saleable Area. The final price Quotations are made according to Super Built-Up area. For example: The Super Built-Up area is 2000 Sq.Ft and the rate for the flat is Rs. 5000 per square foot, so the final price would be 2000Sq.Ft X Rs. 5000 = Rs. 1,00,00,000 or 1 Crore.
While this may come as great news for those looking to buy a home, chances are high that builders may increase the cost of per square foot for the carpet area to offset the revenue they would lose.
This clearly means that even as the Government tries to bring more transparency into a sector, its aim to bring down prices of apartments may fall flat.
Builders are already looking at raising the prices (per sq ft), by roughly 25% in order to recover the money they would have otherwise lost with this RERA Bill. Ultimately, prices will be balanced out by developers, or may, in some case, even rise in the short term.