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Space Allocation 101: Carpet Area vs. Built-Up Area Explained

Blox Social
Posted on
Sep 9, 2023

Carpet area and built-up area are two words that are thrown around so often that even non-home buyers are aware of them. However, when you are actually in the middle of discovering and finalising a home purchase, things can get a bit murky. Should you consider a home that offers a larger carpet area or a larger built-up area? Should you consider other factors in play? Well, the best way to become an informed home buyer is to understand the difference between carpet area and built-up area and how they impact your living space. 

Why should they factor into your decision-making process when buying a home? What are some tips to assist you in selecting the option that suits your needs? Let us discuss it all. 

Defining Carpet Area and Built-Up Area

What does carpet area refer to? 

Well, carpet area refers to the space occupied by the floor within your home excluding areas such as walls, balconies, terraces and common spaces. It’s called carpet area because it’s the space where you can lay down a carpet. Typically measured in feet or square meters, this parameter holds importance when searching for a spacious and comfortable dwelling.

And what about the built-up area?

Built-up area encompasses the space occupied by your home, including both carpeted areas and additional features like walls, balconies, terraces and common spaces. It also takes into account wall thicknesses as well as any ducts or shafts within the building. It is measured in feet or square meters, like carpet area. In addition, the built-up area also includes a share of the facilities found within the building, such as the lobby, staircase and elevator. 

Difference Between Carpet Area and Built-Up Area: 4 Factors

Now that you know the basic definitions of carpet and built-up areas, it’s time to take a deep dive into the subtle difference between the two.

  1. As a thumb rule, remember that the carpet area is always smaller than the built-up area. The difference in size can vary from 10% to 30% depending on the building design and layout.
  2. The carpet area represents the living space you have in your home, while the built-up area encompasses the space you pay for. Consequently, carpet area holds significance in terms of your comfort and convenience, while built-up area is more relevant to your budget and investment.
  3. The Real Estate (Regulation and Development) Act of 2016 (RERA) regulates carpet areas by requiring developers to disclose this information to buyers for each unit. On the other hand, there are no laws governing how developers calculate built-up areas; hence, they may employ different methods.

At the end of the day, the maintenance charges for your home depend on the carpet area, which is calculated based on the rate per foot. Similarly, the property tax is determined by the built-up area and its corresponding rate per foot.

Essential Tips for Home Buyers

For home buyers, understanding the difference between carpet area and built-up area is crucial as it can greatly impact your budget and lifestyle. For example, you might end up purchasing a home with 800 sq. ft. of built-up area, thinking that’s the amount of living space you’ll receive. However, it can then be a big bummer learning that your home’s carpet area is actually just 600 sq. ft. This implies that you're essentially paying for a 200 sq. ft. of space that cannot be utilised according to your needs.

Here are a few useful tips to consider when purchasing a home:

  • It's always a good idea to look for properties with a higher carpet area to built-up area ratio as they offer value for your investment and signify less wasted space.
  • When dealing with the property developer, make sure to request the carpet area certificate, as it provides the measurement of your unit’s space.
  • Want to secure a good home purchase deal and save money? Then, during your negotiations with the developer, focus on discussing pricing based on the carpet area rather than the built-up area. 

Final Words

In conclusion, it is a bad idea to ignore the difference between carpet area and built-up area when it comes to buying a home. Understanding how the two are distinct can save you from regrettable home purchase decisions. On top of that, knowing the true floor size of liveable space available to you can help you better plan your home and know exactly what all area – both usable and non-usable – that you are paying for. Time to make an informed home-buying decision!