Maharashtra RERA redefines carpet area calculation

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In a bid to bring uniformity across the sale transactions in Maharashtra, the state-level real estate regulatory authority has decided to exclude terrace, balcony, and verandah while deducing carpet area. 99acres.com delves deeper to analyse the impact of the same.

With the official website of MahaRERA finally becoming operational, the state government has brought to notice the changes incorporated in the carpet area of residential units as defined in the Section 2(K) of Real Estate (Regulation and Development), (RERA) Act 2016. According to the development, carpet area, which is the net usable area of the apartment, will include the area covered by the internal walls of the house. Meanwhile, balconies, terrace and verandah, even if exclusive to the owner, will not be a part of the carpet area calculation.

New calculation

Until recently, the norm was that real estate developers mentioned built up instead of carpet area while marketing or selling a project. However, the state RERA’s new definition will ensure uniformity in how real estate developers communicate the size of the flat. In that sense, this is a good move. Across all projects in Maharashtra, real estate developers will communicate with the buyer in respect to the carpet area of the property, based on the same calculation norms”, asserts Niranjan Hiranandani, CMD, Hiranandani Communities.

The only difference that will be visible is that the area multiplied by the price per sq ft will change, but the end result will remain the same as per sq ft cost will increase. Until now, sale prices were usually calculated on the basis of built up area, which is larger than the carpet area, and so the price per sq ft was lower. Now, with carpet area being the basis of sale, lesser than built up area, the builder community is anticipated to increase the per sq ft cost to retain their profit margins.

For instance-

The cost of a flat with a built up area of 1,000 sq ft pegged at Rs 8,000 per sq ft is Rs 80 lakh.

However, now after the alteration, only the area within the internal walls which is 900 sq ft will be used for calculating the total cost of the property.

In a bid to avoid the losses owing to the reduction in the size of the property, builders will increase the per sq ft cost of the unit so that both their revenues and the final cost of the property remains unchanged. So, the new per sq ft cost of the property will be approximately Rs 8,900. Here, even though the new definition has risen the per sq ft cost of the property, the final amount paid by the buyer remains unaffected.

Impact on homebuyers

From the homebuyers’ perspective, the move will bring immense clarity in the calculation of a property’s sale price. Until now, real estate developers used to sell flats based on measurements other than carpet area. It was either on the basis of built up area, which was understood to be the sum of carpet area, wall thickness, ducts, exclusive balcony and verandah, or on the basis of the super built up area, which was implicit to the sum of built up area and common facilities, such as veranda, staircase, lift etc which led to huge ambiguities on the buyer’s end.

However, the MahaRERA circular puts an end to all such ambiguities. Firstly, it clearly delineates the carpet area and what should be included in it. Secondly, it asserts that the real estate developer’s communication with the homebuyer will be based on the carpet area which will lead to homogeneity in realty transactions and will reduce procedural complexities.


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  • Comments
  • Amit pujara August 26, 20179:01 pm

    For carpet area as per terms net usable area but for carpet area outer wall to be considered finished or unfinished wall????is it defined?please

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