Beyond The Brick | The Real Cost Of Owning A Home| N18V | CNBC TV18
Why It Matters
Understanding the true usable area protects homebuyers from inflated pricing and safeguards loan assessments in a market where developers routinely inflate square‑footage metrics.
Key Takeaways
- •Carpet area measures usable floor space, excluding internal walls.
- •RERA carpet adds a 10‑14% premium for common amenities.
- •Super built‑up area can inflate price per square foot up to 45%.
- •Builders quote super built‑up to justify construction costs of shared facilities.
- •Buyers should base decisions on RERA carpet, not inflated super built‑up.
Summary
The segment explains the difference between carpet area, RERA‑defined carpet area and super built‑up area in Indian residential real estate, clarifying how each measurement is calculated and used in pricing.
Carpet area counts only the space inside the walls, while RERA carpet adds a statutory 10‑14 % to account for exclusive amenities such as balconies and lobbies. Builders, however, often quote a super built‑up figure that can be 40‑45 % higher, bundling all common‑area square footage that has no government definition.
As one panelist noted, banks base loan valuations on the RERA carpet, not the inflated super built‑up. Developers argue the larger figure reflects construction costs of gyms, open spaces and the extra FSI they secure—sometimes seeking 8 % instead of the standard 5 % free‑FSI allowance.
For buyers, focusing on the RERA carpet prevents overpaying per square foot and ensures transparent financing, while regulators may need stricter disclosure to curb builder‑driven price inflation.
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