Providing much-needed relief to home buyers, the Noida Authority has recently mandated that flats should be registered on the basis of their carpet area. This move will benefit homebuyers as they will have to pay less for registration of plots in Noida from now on. “This order of the Noida Authority will bring great relief to the home buyers as it will reduce the cost of their registration fee for flats and thus their overall property acquisition cost.”
ANAROCK Group Vice Chairman Santosh Kumar.
Property Counting in Noida: What’s the New Rule?
Noida authority has recently informed the UP Real Estate Regulatory Authority (UPRERA) and the revenue department to calculate stamp duty on the basis of carpet area instead of super area. It is important to see how this move is going to affect the price of flats in Noida.
What is carpet area and what is super area?
Carpet area, as the term suggests, is the area that you can cover with carpet in a flat. Also known as net usable area, carpet area simply refers to the amount of space you are going to use in your home.
The Real Estate (Regulation and Development) Act clearly defines carpet area as “the net usable floor area of an apartment, excluding the area covered by exterior walls, area under service shaft, exclusive balcony or verandah area”. and the exclusive open terrace area, but this includes the area covered by the interior partition walls of the apartment.”
Carpet area in a flat bedroom, dining room dressing room, kitchen, study, store, any other room, bathroom, indoor balcony and indoor staircase.
The built up area of a flat is its carpet area plus the space occupied by the wall. This includes unused areas like balconies, terraces, flower beds, etc. To reach the super built-up area, builders use the built-up space and not the carpet area specifically allotted to the buyer. The super area of a unit is the total built up area consisting of the areas occupied by common areas including corridors, lift lobbies, elevators, etc.
The super area or super built-up area of the flat includes the built up area of the flat, club house, air ducts, pipe or shaft ducts, lift, stairs, lobby, swimming pool.
Gymnasium and any other common facilities.
Section 4 of RERA stipulates that every promoter shall make an application to the Real Estate Regulatory Authority for registration of a real estate project, while providing the carpet area of apartments for sale in the project with verandah or exclusive area. Exclusive open terrace areas with balconies and apartments.
How is the new benchmark going to benefit homebuyers in Noida?
The new move has received a mixed response from experts. Some experts believe that the new rule will bring down the registration fee of flats. “Already RERA had mandated that developers sell flats on the basis of carpet area instead of super built-up area. However, even though the developers mentioned the carpet area, there was ambiguity when it came to registration of flats. It was mostly charged over the super-area. With this order, complete clarity has now been provided and home buyers are sure to get the benefits,” clarified Santosh Kumar, Vice President – ANAROCK Group.
Some experts are skeptical that this new rule is going to affect the price of flats in the Noida region in any way. Analysts have mentioned that developers are already adhering to RERA norms and selling houses on the basis of carpet area
“This rule will ensure uniformity with the RERA rules. Buyers have a right to know the actual size of their unit, and after this declaration, the buyers will have to pay the registry according to the actual size of their possession. All developers are required to disclose the carpet area to the buyer; However, there will be no major impact on the cost of the apartments.”
“We appreciate the idea of the authority behind introducing this measure, however after the introduction of RERA guidelines most of the developers have already switched to these norms and have updated their prices. If we look at the ground reality, it will not make any difference to the total price of the apartment, or the revenue earned by the Government Registration Department and the exchequer.” (Election), CREDAI Western Uttar Pradesh.
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