You must have heard the term “carpet area” many times in India’s real estate market. It has gained significant popularity after the establishment of Real Estate (Regulation and Development) Act, 2016 (RERA). Before the act, there was no one legal definition of carpet area and builders used to calculate differently. The RERA Act, provided a clear definition of carpet area to bring transparency in property related transactions.Understanding “Carpet Area” As per Section 2(k) of the RERA Act, 2016, “carpet area means the net usable floor area of an apartment, excluding the area covered by the external walls, areas under service shafts, exclusive balcony or verandah area, and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment.”In simple words, carpet area means the actual area within an apartment or home where you can spread a carpet or the practical space which can be occupied daily. It also represents the true living space, minus all outdoor attachments like anything a homeowner cannot use for living purposes.Why RERA defined Carpet AreaBefore RERA came into force in 2016, builders often promoted properties based on super built-up areas. There were other inflated measures also which included common and unusable spaces. It was extremely confusing for buyers which often led to disputes. That’s when RERA provided an absolute definition:Now buyers understand exactly how much usable space they are buying.No exaggerated figuresComparisons between properties become fair and transparent.The RERA Act also mandates builders to disclose the carpet area clearly in all sale agreements.What is included in the Carpet Area?Net usable floor space which covers all areas that can be used for daily activities:Living roomBedroomsKitchenBathrooms/ToiletsUtility roomsInternal passages within the apartmentInternal Partition WallsRERA carpet area includes the area covered by internal partition walls dividing rooms inside the flat. This is an important point of standardisation because different builders earlier measured internal walls differently — if at all.What is excludedExternal Walls: Outer boundary walls are not a part of the carpet area as they don’t contribute to usable living space.Balconies, Verandahs, and Terraces: Balconies, verandahs, and terraces are also not included in the carpet area as these are outdoor spaces.Service areas: Places that are used for ducts, plumbing, wiring, and other utilities are also not a part of this.Common Areas: Common areas such as lobbies, corridors, staircases, lifts, and common utility spaces do not count. The RERA Act’s definition of carpet area makes things transparent for homebuyers and gives them clarity. By legally defining the term, RERA protects homebuyers from confusing or misleading area calculations which can lead to unfair pricing.