Delhi RERA to make it compulsory for builder to advertise and sell projects on carpet area only

Delhi RERA to make it compulsory for builder to advertise and sell projects on carpet area instead of super built-up area

The Delhi Real Estate Regulatory Authority (Delhi RERA) is considering issue a new set of guidelines for builders and other stakeholders, with the focus on marketing and advertisements of real estate projects.

The authority is planning to make it mandatory to market and advertise any real estate project on the basis of carpet area instead of the super area in Delhi. Currently, developers in the Delhi-National Capital Region market are promoting and advertising real estate projects on the super built-up area instead of the carpet area.

Carpet area refers to the actual usable area of a flat, whereas the built-up or plinth area includes the thickness of the walls, and the super built-up area brings common areas into the ambit.

The authority will impose heavy fines on builders if they are found violating these new guidelines, once implemented.

The Real Estate (Regulation and Development) Act, 2016, mandates that developers mention the carpet area when marketing their projects. However, many builders have been treating this as more of a suggestion, and have continued with promoting flats on the basis of the built-up or super built-areas as well. The Delhi RERA move should put an end to this practice.

Delhi RERA Chairman Anand Kumar at a conference organised by the Delhi chapter of the National Real Estate Development Council last week said that new guidelines regarding the promotion of real estate projects on the basis of carpet area will be issued in the coming weeks.

Kumar said that there are a number of developers who are marketing and advertising their projects on super built-up area but it has to change. There are several complaints in this connection with Delhi RERA and the authority is working to solve the issue, he said.

“Lots of marketing and advertising of real estate projects is going on the super area while as per the RERA Act the pricing should be done on the basis of carpet area. This issue is creating a lot of confusion among buyers. So Delhi RERA is going to release new guidelines that you will be able to advertise, market and sell the apartment on carpet area basis. We will be taking action against builders if they violate these guidelines,” Kumar told Moneycontrol on the sidelines of the event last week.

Under the new guidelines, Delhi RERA will enforce that all projects' advertisement and marketing mentions carpet area.

“Builders must inform buyers about the actual size of property which they are buying and paying for,” he said.

Delhi RERA officials in the know of the development said that the key focus area of the new guidelines will be to ensure transparency in property advertisements, marketing and transactions.

The regulatory authority wants to create a more transparent and reliable environment for buyers and developers by ensuring stricter compliance with regulations, a RERA official said.