Before going on a property hunt to buy a home or invest in real estate, it is essential to know certain terms and their differences like carpet area vs built up area. These terms play a crucial role in determining the cost, value and total livable space of any property. If you find them confusing, then this article is perfect for you before you begin your real estate investment journey.
What is a Carpet Area?
Carpet area refers to the usable area within the four walls of an apartment or a shop/retail space where you can lay a carpet. Basically, it excludes the thickness of the walls, balcony, terrace, or external common spaces from the property.
Calculating Carpet Area
Measure the length and width of each room to calculate the carpet area of that particular room. The carpet area of all the rooms including bedrooms, bathrooms, kitchen and living room is the total carpet area of the home.
Example:
- Living room: 15 feet x 12 feet = 180 square feet
- Bedroom 1: 12 feet x 12 feet = 144 square feet
- Bedroom 2: 10 feet x 12 feet = 120 square feet
- Kitchen: 8 feet x 10 feet = 80 square feet
- Bathroom: 5 feet x 8 feet = 40 square feet
Total Carpet Area: 180 + 144 + 120 + 80 + 40 = 564 square feet
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What is a Built-up Area?
Now built up area actually includes both the carpet area and the thickness of the walls as well as additional spaces like balconies, terrace and utility spaces like dry balcony. It is the total area occupied by the property including both usable and non usable space.
Example:
- Carpet area: 564 square feet a
- Wall thickness (approximate): 10% of carpet area = 56.4 square feet
- Balcony: 30 square feet
Total Built-Up Area: 564 + 56.4 + 30 = 650.4 square feet
Importance of Understanding the Difference Between Carpet Area vs Built-up Area
Making Informed Decisions
Having an understanding about the difference between carpet area and built up area helps the buyer acknowledge the livable space over total space. Buyer can make informed decisions based on the actual usable area available rather than the total area mentioned by the builder.
Accurate Valuations
The understanding enables accurate property valuations. When comparing prices, the focus can be on the usable area and avoiding over payment on non usable areas. Proper negotiations can be done for a better deal.
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Transparency in Transactions
Transparent transactions are a best practice in any industry, especially real estate. A good knowledge of carpet area vs built-up area promotes transparency between buyers and sellers to avoid any misunderstandings or disputes in the long run.
Plan, Design & Layout
If you are looking to customize the interiors of your home, knowing the usable area i.e. the carpet area helps you plan the layout, furniture placements, any structural modifications, etc. effectively. You can easily optimize the space.
Some Examples:
- Buying an Apartment
Imagine considering two apartments in a building, both with a built-up area of 1200 sq. ft. But one has a carpet area of 900 sq. ft., whereas the other has 825 sq.ft. Although both apartments have the same built up area, the former has more usable space and will feel more comfortable and bigger in size, thus being a better choice.
2. Renting an Apartment/House
While renting an apartment, one should know that the rent amount is calculated based on the built-up area. However, if you have an understanding of the carpet area, you can evaluate whether the rent for that livable space is justified. House with more carpet area is favourable even if the rent is slightly higher.
Final Thought
To conclude, having a basic understanding of carpet area vs built up area is essential for anyone looking to make a real estate transaction. Carpet area refers to the usable space excluding the balconies, terrace, utility areas, external spaces or thickness of the walls. Built up area includes these areas. Make informed decisions and accurate property valuations based on these differences. Find a property that truly resonates with your needs and expectations.