NAREDCO in News
 
Media Room
 
Industry News
 
Articles
 
National Realty e-Magazine
 

Industry News

Select a year 


JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember                Back

 
Real Estate Myth #1: Larger carpet area always means more usable space
Cnbctv18.com  |  May 22, 2019

Deepesh Salgia

<          Carpet area is still not the last word on the actual amount of usable space within the apartment.

<          Two apartments with identical carpet areas could have different usable areas, thanks to technical factors.

 

Myth Series: What is its purpose?

 

While real estate is among the fastest growing businesses in India, it rarely finds respectable space in curriculums of business schools. Also, there are hardly any case studies available to explain the intricacies of the sector.

 

For these reasons, many facts and theories floating about real estate follow a ‘common sense-ical logic’. Unfortunately, many of these are misconceptions, myths or even downright false.

 

The purpose of this series, therefore, is to take one real estate myth in each blog and provide insights on the real issues.

 

While buying everyday consumption items like vegetables, fruits etc. everyone ensures that the measurement is accurate. But while purchasing, one of most expensive things of their lifetime &ndash one’s own house - no one actually measures it. The space available in the house is only estimated.

 

The most common parameter to assess the usable space within an apartment is its carpet area. While, carpet area normally gives a reasonably good idea about the size of the apartment and is definitely a significant improvement over ‘super built up area’ or ‘saleable area’ of the past, however, it is still not the last word on the actual amount of usable space within the apartment.

 

Two apartments with identical carpet areas could have different usable areas. Consider two apartments in the same building, one located exactly above the other, one on the 5th floor and one on 30th floor. Both these apartments have the same layout and have identical carpet area. It may raise a few eyebrows but the fact remains that these two most likely would have different usable spaces. This is because carpet area (as defined under RERA) includes the thickness of walls between the rooms. And typically, in a high rise tower, the apartments on lower floors have thicker columns and RCC walls. So, the owner of apartment on 5th floor will normally be enjoying lesser usable area than the owner of the apartment on the 30th floor.

 

Consider another example of two apartments A and B with differing carpet areas of 600 sq. ft. and 625 sq. ft. respectively. It may be shocking but under certain situations, apartment A can actually have more usable space than an apartment B..! This is because carpet area (as defined under RERA) does not consider balcony within the carpet area. So if the apartment A has a 40 sq. ft. of balcony, then the usable space available in apartment A will be more than the usable space available in apartment B.

 

Hence, it is important that such technical factors are considered before ascertaining the actual usable space available and also while undertaking valuation of the apartment. Decisions based purely on carpet area could be misleading.

 

(Deepesh Salgia is Director, Shapoorji Pallonji Real Estate)