What is Saleable Area in RERA?

 General
 Tuesday 23rd July 2019
 Author: Shreya Uppal
Highlights
o According to the provisions of the RERA Act, 2016 it is now the duty of the developer, to make
buyers aware of the carpet area and quote prices based on this and not the super built-up area.
o one should ask the developer for the ratio of carpet area to the super built-up area. The higher the
ratio of carpet area to the super built-up area, the more space one will get inside the flat.
o A lower price does not necessarily mean a better deal. Do consider all the factors
The price of the flat is usually based on its saleable area. However, there are many ways
to interpret and calculate the saleable area. The saleable area has a huge impact on the
actual area one gets, and the total buying price. Not surprisingly, the maximum number
of cases registered in the consumer courts, are against developers on the issue of
cheating, regarding the size of the flat. According to the provisions of the  RERA
Act, 2016 it is now the duty of the developer, to make buyers aware of the
carpet area and quote prices based on this and not the super built-up area.

Meaning of Saleable area as per Telangana RERA Rules, 2017

“Saleable Area” includes Carpet Area plus veranda/balcony/terrace area which is
exclusively meant for the Allottee plus the proportionate share of Common Areas and
any other area as agreed between the Promoter and Allottee in the agreement of sale for
which a proportionate cost has been collected from the Allottees.

5 terms you must be aware of before buying a home:

1. Carpet Area-  It means the net usable floor area of an apartment, excluding the area
covered by the external walls, areas under services shafts, exclusive balcony or
verandah area and exclusive open terrace area, but includes the area covered by the
internal partition walls of the apartment.

2. Built-up area- Built-up area includes the carpet area, plus the extra areas certified
by the authorities, such as the area of the outer and inner walls, dry balcony area, etc.

3. Super built-up area- Carpet area + terrace + balconies + areas occupied by walls +

area occupied by common/shared construction (e.g. lift, stairs, clubhouse, etc).
Generally, builders use loading factor on the carpet area to arrive at the super built-up
area. Generally, the super built-up area is the saleable area.

4. Loading factor is the difference between the super built-up area and the carpet area
of your flat. It is used to add constructed spaces not exclusively allocated to you. It
includes shared areas like lifts, lobbies, staircases, and amenities, as well as a part of
your terrace and balcony. The loading factor of 1.20 means that your builder has added
20% to your carpet area. If the residential project does not have many amenities, the
loading factor will be small. In most cases, a loading factor of 1.30 is considered
sufficient.

5. Per square foot rate- It is the rate quoted by the builder. It is typically applied to
the super built-up area to determine the price of your flat. The important thing to
remember here is that the per-square-foot rate of your flat is normally based on the
super built-up area (also called saleable area), which includes not only the carpet area of
your flat (i.e. the usable area inside your flat) but also some additional areas of the flat
(like balcony and terrace area) and building complex (like lobbies, staircases, passages,
etc.).

Therefore, one should ask the developer for the ratio of carpet area to the super built-up
area. The higher the ratio of carpet area to the super built-up area, the more
space one will get inside the flat.

Some of the essential tips:

1. The more saleable area does not necessarily mean more carpet area.
2. Area calculation method can seriously affect the buying price.
3. A lower price does not necessarily mean a better deal. Do consider all the factors.

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Tags: Carpet Area, Telangana