The Delhi Real Estate Regulatory Authority (Delhi RERA) is set to implement guidelines requiring developers to advertise and sell real estate projects based on carpet area rather than super built-up area, officials announced, as published by Money Control.
Carpet area refers to the actual usable floor space within an apartment, excluding walls, balconies, and shared spaces. In contrast, the super built-up area includes these elements, often leading to discrepancies in buyer expectations and transparency.
Currently, many developers in Delhi and the National Capital Region (NCR) market their properties based on super built-up area. The new rules, once enforced, aim to align promotional practices with the Real Estate (Regulation and Development) Act, 2016 (RERA), which mandates the use of carpet area in project advertisements.
Anand Kumar, chairman of Delhi RERA, confirmed the move during a recent conference organized by the National Real Estate Development Council (NAREDCO) in Delhi. Kumar acknowledged widespread complaints regarding misleading marketing practices.
“A lot of advertising focuses on the super built-up area instead of the carpet area, causing confusion among buyers,” Kumar said. “As per the RERA Act, pricing should be based on carpet area. New guidelines will soon be issued to ensure compliance. Violators will face penalties.”
Under the revised guidelines, developers must disclose the exact carpet area in all advertisements and marketing materials. The initiative is intended to promote transparency and foster trust between buyers and developers, Kumar added.
Delhi RERA officials emphasized that the primary goal of the updated policy is to eliminate ambiguities in property transactions and ensure buyers are fully informed about the actual size of the property they are purchasing.
The regulatory authority plans to impose heavy fines on builders who fail to adhere to the new standards. While the RERA Act already requires developers to mention carpet area, officials noted that many treat it as optional and continue promoting projects using built-up or super built-up area.
“The new guidelines will mandate advertising and pricing based on carpet area to provide buyers with clear and accurate information,” a RERA official said.
The announcement marks a significant step toward enhancing accountability and standardizing practices in Delhi’s real estate sector. The guidelines are expected to be issued in the coming weeks, with enforcement following shortly thereafter.