It is if you're talking about a bedroom or a bathroom. If you're talking about room as in leg-room or a space to put something, it's Raum. This particular sentence is a little misleading; not technically wrong, but ambiguous.
From the information we've been given, I can't think of any reason why "area" shouldn't be accepted as a translation for "Raum" in this sentence. So I'll be reporting it as an alternative and I suggest others do too.