Literally, carpet area of your apartment is the space on which you may be able to lay a carpet. Simply put, this is the actual usable area in your housing unit.
Due to an ambiguity over the definition of carpet area, some developers had earlier been charging home buyers according to built-up area, super built-up area, etc. But the recently passed Real Estate (Regulation and Development) Bill, 2016, makes the definition clearer.
According to the legislation, “carpet area means the net usable floor area of an apartment, excluding the area covered by external walls, area under services shaft, exclusive balcony or veranda area and exclusive open terrace area”. However, carpet area includes the “area covered by the internal partition walls of the apartment”. The Bill further explains that the expression “exclusive balcony or veranda” means the area of the balcony or veranda which is appurtenant to the net usable floor area of an apartment, meant for the exclusive use of the buyer. The same goes for the exclusive open terrace area.
Clause 4 (2.H) of the Bill emphasises that developers will now have to sell apartments on the basis of carpet area as defined in the Bill. A clearer definition is expected to bring more transparency in the sector.

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