Difference Between Buyers & Builders Calculation of Flat Area

Retd. Col Bannerjee did extensive online research on per square foot pricing in the area where he planned to buy a flat. Confident in his findings, he finalized a deal with a builder, feeling victorious for securing what he thought was a great deal.

However, when he took possession of the flat and measured the carpet area, he was shocked. The builder's claimed area was 1349 square feet, but his measurements showed only 1277 square feet. This discrepancy meant he had paid for 72 square feet that didn't exist. With a price of ₹8500 per square foot, this miscalculation cost him an extra ₹6.12 lakhs for space he never received.

Well, Col Banarjee is not an exception. There are many fauji family members like him who feel cheated because of non-standard practices by builders. 

Even after RERA clearly clarifying in guidelines what carpet area means and what is the unit to be used for measurement, builders continue to use different standard which suits their needs. 

Let's talk about this.. 

Understanding the difference between carpet area, built-up area, and super built-up area is crucial, as these terms define your living space and influence the property's overall value.

Carpet Area

Definition: Carpet area refers to the actual usable area within the walls of the flat, where you can lay a carpet.

Components: All rooms like bedrooms, living room, kitchen, and bathrooms.

Exclusions: Thickness of inner walls, balconies, terraces, and common areas such as staircases and corridors.

Relevance: Carpet area is the actual living space you will use daily and provides a clear picture of the usable space within the flat.

Built-up Area (BUA)

Definition: The built-up area includes the carpet area (actual usable area within the walls) plus the thickness of the walls and areas like balconies, terraces, and utility spaces.

Components:

1. Carpet area (living spaces such as bedrooms, living room, kitchen, bathrooms).
2. Thickness of internal and external walls.
3. Balcony, terrace, and other semi-enclosed spaces.
4. Duct areas.
5. Built-in wardrobes or cupboards.

Super Built-up Area (SBUA)

Definition: The super built-up area, also known as the saleable area, includes the built-up area of the apartment plus a proportionate share of the common amenities and areas in the building.

Components:

Built-up area (as defined above) plus proportionate share of common amenities such as:

1. Parking spaces.
2. Elevators.
3. Party hall.
4. Play area for children.
5. Jogging track.
6. Swimming pool.
7. Gazebo or common relaxation areas.
8. Outdoor performance spaces.
9. Sports facilities.
10. Clubhouse.
11. Staircases, lobbies, corridors, and other shared spaces.

Calculation of SBUA

Method: Builders add a loading factor to the built-up area to account for the common amenities. This factor typically ranges from 20% to 40%, depending on the extent and quality of the shared amenities.

Example: If the built-up area of an apartment is 1000 sq. ft. and the loading factor is 30%, the SBUA would be calculated as: 

SBUA=BUA+(BUA × Loading Factor)

SBUA=1000sq ft+(1000 sq ft×0.30)=1300 sq ft

Conversely, if you paid for a 1000 sq. ft. SBUA apartment, the carpet area might be only around 700 sq. ft. due to the inclusion of shared spaces.

Understanding the price list shared by builders 

Let's understand this with an illustration: 

Assume you are buying a flat with 1000 sq. ft. of carpet area and 1300 sq. ft. of super built-up area. If the market rate is around ₹4600 per sq. ft., the price of this unit would be ₹60 lakhs plus taxes. However, according to RERA rules, builders should quote only the carpet area and not the built-up or super built-up area. If the builder follows this rule, then the per sq. ft. price of this unit will translate to ₹6000 per sq. ft.

Now, most of the Builders take the approach of showing the box price of Rs.60 Lacs on the official price sheet for this unit mentioning just the carpet area and not showing the per sq. ft. price which might create a confusion. 

They might show you the per sq. ft. calculation on a simple piece of paper for understanding but not on the official price sheet. 

What should Fauji Family members do then?

Fauji family needs to understand that the SBUA includes a share of common areas, meaning the actual living space (carpet area) will be less than the SBUA.

Fauji family memebrs should always ask the developer for a detailed breakdown of the areas. Request specifics on carpet area, built-up area, and the loading factor used to calculate the SBUA. Be mindful that costs for amenities, maintenance, and property taxes may be based on the SBUA, not just the carpet area.

Conclusion

Understanding the distinctions between carpet area, built-up area, and super built-up area is crucial when purchasing an apartment for fauji family members. By being informed about these terms and their implications, you can make a more educated decision and avoid potential misunderstandings and help you to not repeat the mistake done by Retd. Col Bannerjee.

Jai Hind!