In a significant step towards enhancing transparency in real estate transactions and safeguarding the interests of homebuyers, the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has advised homebuyers to buy residential units on the basis of their carpet area, which reflects the actual liveable space available within an apartment.

RERA Permits Only the Carpet Area as Basis for Sale of Apartments

The Real Estate (Regulation and Development) Act, 2016 and the Rules framed thereunder clearly lay down the carpet area as the standard measure for disclosure and sale of apartments. Under Section-4(2)(h) of the Act, a promoter is required to disclose on the UPRERA portal the number, type and carpet area of apartments offered for sale in a project, along with the area of exclusive balconies or verandahs and exclusive open terraces attached to the apartment. The legal provisions do not require disclosure of the super built-up area for this purpose.

Further, the Rules provide that the size of an apartment shall be disclosed on the basis of carpet area, even where units may have been marketed or sold earlier on any other basis such as super area or super built-up area. Similarly, the prescribed format of the Agreement for Sale under the Rules also provides for sale of apartments only on the basis of carpet area.

Super Built-up Area Often Masks the Actual Usable Space

Despite the statutory requirements of sale on the basis of carpet area, apartments are often marketed in terms of super built-up area. The super built-up area includes a proportionate share of common facilities and spaces such as corridors, staircases, lift areas, lobbies, clubhouses and other common amenities. These common areas are added to the carpet area through a loading mechanism, resulting in a figure that is significantly larger than the actual usable area within the apartment.

As a result, many homebuyers may not fully get to know the difference between the advertised area and the actual liveable space available inside the flat. Carpet area, on the other hand, provides a clear and accurate measure of the space that is actually occupied and used by the buyer.

Initiative to Promote Transparency and Informed Decision-Making

To make the sale-purchase process more transparent and consumer-friendly and to protect the consumers from misleading liveable space under the apartment, UPRERA is impressing upon the homebuyers to evaluate residential units on the basis of carpet area. Greater awareness regarding carpet area will enable them to make informed decisions and facilitate fair comparison among projects and apartments.

Homebuyers Can Verify Carpet Area on UPRERA Portal

UPRERA has advised homebuyers to visit the UPRERA web portal before finalizing any property transaction. The portal contains project-wise information submitted by promoters, including details regarding the carpet area of apartments. Buyers can use this information to independently verify the actual liveable area of the apartments and make better-informed investment decisions.

UPRERA remains committed to promoting transparency, accountability and consumer protection in the real estate sector and continues to undertake initiatives aimed at empowering homebuyers who have invested or are planning to make investment in real estate property in the state of Uttar Pradesh.