Is Balcony Included in Carpet Area as per RERA?

06 Aug 2025 --
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Is Balcony Included in Carpet Area as per RERA?

1. Introduction

Carpet Area under RERA (Real Estate Regulatory Authority) is a key metric in real estate pricing and agreements.

Carpet area is the net usable area inside the apartment, excluding walls, common areas, and structural elements.

Understanding whether a balcony, terrace, or utility space is included is critical for:

Pricing transparency

Buyer protection

Compliance with RERA regulations

2. Definition of Carpet Area under RERA

RERA Act, 2016 – Section 2(zk):

"Carpet area means the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area, and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment."

Key Points:

Includes: Internal usable space within walls.

Excludes:

External walls

Open terraces

Balconies/verandahs

Service shafts

Purpose: Ensures buyers are not overcharged for areas they cannot fully utilize.

3. Treatment of Balcony in Carpet Area

Balcony / Verandah / Terrace: Explicitly excluded from carpet area as per RERA.

Can be included in super built-up area calculation in some cases (developer marketing), but not in legal carpet area.

Illustration:

Apartment of 1000 sq. ft super built-up area

Carpet area: 650 sq. ft

Balcony area: 50 sq. ft → not counted in carpet area

Common areas, walls → included in super built-up

Reason: Balcony is considered exclusive open area, not “net usable indoor space.”

4. Judicial / RERA Authority Interpretation

A. Maharashtra RERA – Example

Case: J. N. Developers vs. Buyer Association, MahaRERA (2018)

Issue: Buyer claimed balcony should be included in carpet area for payment calculation.

Authority held: Balcony is excluded from carpet area as per Sec. 2(zk) RERA.

Developer cannot charge extra based on carpet area including balcony.

B. Punjab & Haryana RERA – Example

Case: XYZ Builders vs. Homebuyers, Punjab RERA (2019)

Developer included balcony area in “carpet area” in agreement.

Authority ruled: misleading representation, buyer entitled to refund for extra amount charged.

C. Supreme Court / High Court Guidance

Courts have consistently upheld RERA’s definition of carpet area, emphasizing buyer protection and transparency.

Charging based on “carpet area including balcony” is contrary to RERA regulations and constitutes violation.

5. Implications for Buyers and Developers

Aspect	Implication
Buyers	Pay only for carpet area (excluding balcony). Avoid paying extra for open areas.
Developers	Must disclose carpet area clearly in RERA registration and agreements. Charging based on super built-up area or including balcony in carpet area is penalizable under RERA.
RERA Registration	Carpet area declared in project registration must comply with Sec. 2(zk). Misrepresentation can lead to penalty or compensation to buyers.

6. Example / Illustration

Fact:

Apartment registered under RERA

Carpet area: 700 sq. ft

Balcony: 50 sq. ft

Developer charges as 750 sq. ft

RERA Analysis:

Carpet area excludes balcony → correct charge: 700 sq. ft

Extra 50 sq. ft is violation of RERA disclosure norms

Buyer can file complaint → RERA may order refund/compensation

Case Analogy: J. N. Developers vs. Buyer Association, MahaRERA (2018)

7. Exam-Oriented Summary Table

Aspect	Key Points
Definition of Carpet Area	Net usable floor area inside walls, excluding external walls, service shafts, balcony/verandah, open terrace
Balcony Inclusion	Excluded from carpet area
RERA Section	Sec. 2(zk) Real Estate (Regulation & Development) Act, 2016
Judicial / RERA Decisions	J. N. Developers vs. Buyer Association (MahaRERA 2018), XYZ Builders vs. Homebuyers (Punjab RERA 2019)
Implications	Developers must disclose correctly; buyers pay only for carpet area; misrepresentation leads to penalties/compensation