The carpet area rule was meant to make houses more affordable. But of course that hasn't happened. Builders have found a reason to bypass this rule, and are charging in such a way that the carpet area prices include the built up and super built up charges.

So a house in Juhu and Bandra that should've ideally cost between Rs 20,000 and 30,000 per sq ft, will now cost Rs 35,000-40,000 per sq ft.

Nayan Shah of Mayfair Housing sells his property on the carpet area rate. But what he says shows a different
picture.

"My prices are 50-60 per cent higher when compared to the market rate of others. But we don't charge for built up and super built," said Shah.

All for profit

The proportion of built up area is as high as 35-45 per cent of the whole house. Hence, when a builder sells his property by using the carpet area formulae, he increases the price. Sandeep Sadh of Mumbai Property Exchange, a real estate consultancy firm,  said, builders will never lower prices.

"If a builder is charging for the carpet area, he should charge within a margin of 30 per cent and not more. This will bring them profit. But they are charging more than 50 per cent, which unnecessarily increases the price," said Sadh.

He added, "The normal price at areas like Bandra, Juhu and Khar for carpet area sales should be up to
Rs 35,000 per sq ft, but because of the builder it will be hiked and be out of reach."

However, builders don't feel their hiking of price is unjustified.

Anand Gupta, secretary, Builders Association of India, said, "Builders are forced to hike the prices if they have to sell on carpet area. The land they buy is costly and the FSI given is low. Builders too need their share. If the government wants us to lower the prices, it should provide us with the facilities," said Gupta.