What is ebvt area?

The new regulator, RERA has slightly tweaked the definition of 'carpet area' 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 includes the area covered by the internal. According to the RERA, 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 includes the area covered by the internal partition walls of the apartment'. RERA Carpet Area Vs Actual Carpet Area | RERA carpet area calculation | RERA Certificate. Built-up area is the total area measured on the outer line of your flat, including balcony, terrace, etc. Under section 2(k) of the real Estate (Regulation and Development) Act, 2016, carpet area of the apartment to be sold by the promoter is defined as “Carpet Area” which means the net usable area of an apartment, excluding the area covered by external walls, area under service shafts, exclusive balcony or verandah area.

When buying a house, you usually pay for the number of square feet you are going to be occupying. It is best to know what it is that you will be paying for and why. This is where builders, developers, and even brokers will use terms such as Carpet Area, RERA Carpet Area, Built-up Area, Loading Factor, Super Built-up Area, etc. Here, we have simplified all these terms with relevant formulae and examples for your understanding. A quick glance through this before you head out hunting for your ideal home is enough to keep you ahead of the game.

The area of an apartment that can be covered by a carpet or the net usable area is known as the carpet area. It is the distance between the inner walls. The carpet area would include the areas of the bedroom, living room, kitchen, bathrooms, balconies & staircases within the house/flat. It does not include the external and internal walls, terraces, common areas, lifts, corridors, utility ducts, etc.

According to the RERA Act 2016, The RERA Carpet Area is the net usable floor area of an apartment or house excluding the external area, common areas, exclusive balcony, or veranda area, and exclusive open terrace area, but includes the area covered by the internal partition walls.

Note: As used herein, “exclusive balcony or verandah area” refers to the area of the balcony or verandah, as the case may be, which is attached to the net usable floor area of an apartment, reserved for the exclusive use of the allottee (house owner); and “exclusive open terrace area” refers to the area of open terrace which is attached to the net usable floor area of an apartment, reserved for the exclusive use of the allottee (house owner).

The Only difference between RERA Carpet Area and Carpet Area is the thickness of the internal partition walls. In RERA Carpet Area, the thickness of the internal walls is included while in the general Carpet Area it is excluded. Approximately, there is a 5% difference between both the carpet area.  RERA Carpet Area is 5% more than the general Carpet Area.

The carpet area can be calculated by a simple formula which is:

Carpet area = (area of bedroom + living room + kitchen + balconies + toilets) – the thickness of the inner walls.

In most cases, the carpet area in your apartment typically comprises between 70% to 90 % of its total built-up area

Let’s take an example of a real apartment carpet area calculation-

Suppose an apartment has a 1392.65 sq. ft. built-up area, and 82.8 % of that is the General Carpet Area.

Then, 82.8% of 1392.65 sq. ft. = 1153.11 is the General Carpet Area.

According to The RERA Act 2016, The RERA Carpet Area can be calculated by-

RERA Carpet Area = Net Usable Area of the Apartment (exclude external walls, Terrace Area, Balcony area, & Verandah Area) + Areas of the Internal Partition Walls

As we saw the above, Approximately, there is a 5% difference between the General Carpet Area & RERA Carpet Area. If you have 1153.11 sq. ft. of General Carpet Area, then the RERA Carpet Area will be calculated as 1211 sq. ft.

The built-up area is the sum of the carpet area and the area of both the exterior and interior walls, balcony, the exterior staircase, and other liveable areas if any. If there is an exclusive terrace, then that too is included in it. The built-up area comprises around 70-80% of the super built-up area.

The built-up area is calculated by adding a Carpet Area or, RERA Carpet Area, Both Interior & Exterior Wall areas, Exclusive Balcony, and Corridor if any.

Built-up Area= Carpet Area + Wall Areas + Terrace and Balcony + Exclusive Corridor

Usually, the Built-up area is 10% to 15% more than the Carpet Area So, if your RERA Carpet Area is 1211 sq. ft., then the built-up area will be between 1332.1 sq. ft. and 1392.65 sq. ft.

Super built-up area is referred to as the ‘saleable area’ and homebuyers are usually charged based on this value. It is the sum of the exclusive built-up area, and common areas including the lift, corridors, staircase, clubhouse, and other amenities.

However, it does not include the area of compound walls, open-to-sky swimming pools, parks, driveways, open sports facilities, inaccessible garden areas, play areas, underground sinks, water tanks, and septic tanks.

The proportionate share of common areas is referred to as the “Loading Factor” and is assigned a percentage that usually ranges from 25% to 60% of the carpet area.

If the loading factor is 50% and your carpet area is 1211 sq. ft., then the super built-up area would be 1816 sq. ft.

Super built-up area is calculated by adding the built-up area and the proportionate common area.

It can also be calculated by multiplying the carpet and 1 + loading factor.

(E.g., 1211 sq. ft. x 1+0.50 = 1816 sq. ft.)

Assume you own a 1000 sq. ft. flat on the third floor, and your friend owns a 2000 sq. ft. flat on the same floor. If the total area of the common area is 1,500 sq. ft., the builder would split the common area in the ratio of the built-up area.

In this case, the ratio is 1:2 and hence, the builder will add 500 sq. ft. to your apartment and 1000 sq. ft. to your friends. Now, the super built-up area of your property will be 1500 sq. ft. and your friend’s super built-up area will be 3000 sq. ft.

The difference between the super built-up area and the carpet area of the flat is known as the Loading Factor. This is used to add constructed spaces that are not exclusive to you, such as the elevators, lobby, maintenance room, parking, etc. If the Loading Factor is 1.50, it suggests that the builder has added 50% to your carpet area.

If the super built-up area is 1816 sq. ft., and the carpet area is 1211 sq. ft., then:

Loading Factor = Super Built-up Area – Carpet Area

Loading Factor = 1816 – 1211 sq. ft.

Loading Factor = 605 sq. ft.

The loading factor, therefore, is 50%.

An ideal Loading Factor for luxury apartments would be below 60%. Any value above that would mean that there is a higher super built-up area and a smaller carpet area. This means that homebuyers would be settling for smaller homes. With this value in mind, homebuyers can make an informed decision about how much they are paying and for what.

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A built-up area includes all the area of the carpet, balcony, exclusive corridor, terrace, staircase, etc., as well as the thickness of all walls, while a Super Built-up Area includes an exclusive built-up area plus common areas, such as lifts, common corridors, staircases, a clubhouse, and other amenities, and is also known as a “saleable area“.

In the above table, you can see areas like the living room, bedrooms, dining room, bathrooms, and inner staircases featured in all three categories. However, balcony, outer staircase, terrace, verandah, lift, lobby, and garden areas are featured under super built-up area. These are not featured under carpet area and built-up area.

Carpet area, or the net usable area, is the space where one can spread a carpet. Built-up area includes the carpet area, plus the extra areas certified by the authorities, such as the area of the outer and inner walls, dry balcony area, etc.

Super built-up area, on the other hand, includes the carpet area, the built-up area, as well as a share of the balance area, such as the stairs, lobbies and galleries, which can be used by all the residents. Prior to enactment of the RERA, builders used to quote the super-built up area and agents used to promote new projects citing how spacious these were. The RERA has quashed such malpractices.

For example,  if the built-up area is 1,000 sq ft, 30% (that is, 300 sq ft) is generally not usable and is usually the dry balcony, staircase, etc., while 700 sq ft is the remaining area that will be used and is hence the carpet area.

Residential units in metro cities with 60 sq metres of carpet area and 90 sq metres of carpet area in case of non-metro cities, are considered as affordable housing. Any alteration to this understanding is decided by the authorities.

An easier description would be: Anything inside the outer walls of an apartment, but excluding the balconies, verandah or open terrace and shafts, says Digbijoy Bhowmik, head of policy, RICS, South Asia. “Now the balcony’s area will not be included, even if it is an exclusive balcony for the flat. The area of the lift lobby, staircase lobby or any space that you can be in, before you enter the house through the main door, cannot be included. Also the common/exclusive shaft that is used to vent the air from kitchen/lavatory, is excluded. However, a walk-in wardrobe will be included,” he explains.

Dhaval Ajmera, director of Ajmera Realty, points out that “Many promoters provide information on the built-up area, rather than the carpet area, which is less than the built-up area.” Now, a clear definition will align customers’ expectations, with the actual measurements of the flat.

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Sandeep Singh, CEO of Sheltrex, a Brick Eagle Company says, “Buyers will now understand the exact measurement of the flat they can reasonably expect to receive from the developer. Furthermore, they will know exactly what part of the flat is included in carpet area and what part is included in verandas and terraces. Additionally, developers will have to be more stringent in planning their projects, to ensure exact rendition of plans to actual carpet area.”

Home buyer Nidhi Sharma, points out that property rates per sq ft, will certainly go up, as the total price will be divided by a lower denominator (carpet area, as against super built-up area). “Nevertheless, now, at least we will know what we are getting into. We will no longer get a 500 sq ft apartment while thinking we have purchased a 700 sq ft apartment,” she says.

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According to Rahul Shah, CEO of Sumer Group, “As per the RERA guidelines, a builder must disclose the exact carpet area, so that a customer knows what he is paying for. However, the act does not make it mandatory for the builders, to sell a flat on the basis of carpet area.” Amit Wadhwani, director, Sai Estate Consultants, maintains that a lot of effort needs to be put to create awareness. “Bankers, investors, developers and brokers, need to start practicing RERA and disseminate the information. All the changed definitions are supposed to be practiced and executed on the ground by the real estate fraternity, so that there is clarity and benefit for the end-users,” he concludes.

In the case of an apartment, the promoter has to confirm the final carpet area that has been provided to the buyer, after the construction is completed and the occupancy certificate is granted. The real estate law specifies that in case of alterations, the total payable price will be recalculated. If there is a reduction in the carpet area, the excess amount would be refunded within 45 days, with an annual interest rate as prescribed in the rules. Note that the increase in the area cannot be more than 3%. In case there is an increase in the carpet area, the developer can demand a higher amount in the next payment. The cost will be calculated at the same rate per sq ft, as agreed.

See also: All about property registration laws in India

With RERA, the additional comfort that a home buyer gets, is the assurance that if the developer has stated that a property is 900 sq ft, it would indeed be 900 sq ft of carpet area. However, for years together before RERA, prospective home buyers did not enjoy this benefit. Not just unregistered developers in the past, even the most renowned builders have been accused of real estate scams, wherein they advertised the property with its super built-up area or completely covered the fact that very small units were being advertised in the garb of affordable homes.

Some developers cite the amenities that they provide to home buyers, which adds up to almost 35% of the entire project area. This, they say, was the reason why super built-up area or loading was the unique selling point before RERA. Not anymore.

Section 61 of the RERA says that for providing false information and other such contraventions, the promoter may have to pay a penalty of 5% of the estimated cost of the real estate project.

Thanks to the RERA, developers have been offering clarity about the carpet area of their properties. As per independent researches, in the post-pandemic world, the demand for bigger homes has witnessed a rise. It is important for prospective home buyers to check the carpet area of the property, before signing on the dotted line. Know that the carpet area would be close to 30% lesser than the super built-up area. Do not get confused between the two.

The Maharashtra state real estate regulatory body has directed that all promoters should necessarily disclose information about booked flats, houses, plots and shops, among other constructions. The database thus created, would give more clarity to purchasers and multiple transactions could be avoided. All the information is to be disclosed in a set format and this shall include: total number of floors/wings, number of flats/shops/rowhouse, carpet area, sold/booked/unsold inventory and registration details. With this, instances of unauthorised housing in Maharashtra will also be identified.

(With inputs from Sneha Sharon Mammen)