When buying land for construction, buyers consider several factors. They range from whether the land is leasehold or freehold. They also include the Floor Area Ratio (FAR) or Floor Space Index (FSI) allowed by the local civic body. FAR is a significant parameter that can alter the built-up space of a property. So, staying updated on the FAR/FSI norms is crucial. The authority in your property’s jurisdiction regulates them.
Let us try to understand it more simply. Let’s learn about the floor area ratio and FSI formulas.
What is FAR in Construction?
The Floor Area Ratio (FAR) is the ratio of the total floor space in a building to the total area of the plot the building is on. In other words, FSI or FAR dictates the maximum floor space that someone can construct on a piece of land.
The total floor area of a building, divided by the total area of the plot, yields the FAR or FSI. This numeric value reveals the total buildable area across all floors on a given plot.
The local city government determines an area’s floor-area ratio (FAR) to control the height of buildings based on the land’s size. FAR also governs population density and open space availability. Other factors include environmental impact and resilience to calamity. Simply put, it is the load that the land parcel can safely bear. The load varies by the land’s use: residential, commercial, agricultural, or industrial.
How to calculate Floor Area Ratio (FAR)?
Floor area ratio is the ratio of the total area covered by a building to the plot’s area.For example, for a plot of 10,000 square meters, an FSI of 1 allows a 10,000 square meter building.With an FSI of 1.5, 1,000 sq ft of land allows 1,500 sq ft.
Here’s the FAR calculation formula.
Floor Area Ratio= Total Floor Area of the Building / Total Plot Area
Plot area multiplied by floor space index equals built-up area.
Note: FAR of 1.5 is expressed as an FSI of 150%.
Note that the Floor space index (FSI) also applies to commercial buildings.
Why is FAR important for homebuyers?
FAR has a great impact on homebuyers because it directly affects the height of a building. The more floor area, the taller the building will be.
Imagine a skyscraper in a big city with dozens of floors and hundreds of residents. Homebuyers might face this if they choose a project with a higher FAR and the Right Flooring. Residents share amenities like pools, elevators, and clubhouses in a dense community. This can be overwhelming.
For example, patients and visitors at a hospital often have to wait in long elevator lines. This can be frustrating. Residents may have to wait to use the pool or gym in a high-FAR residential building. This reduces their quality of life.
How does FAR or FSI affect property prices?
Many homebuyers believe that FAR influences prices. However, it does not. FAR impacts the developer’s project’s profitability. Developers can build more units on land if the FAR is more than a minimum FAR.
FAR is much needed for both developers and homebuyers. Developers must meet the required FAR value to avoid penalties. In the Same time, homebuyers should check the FAR to understand project density before deciding.
What is the difference between floor area ratio and floor space index?
The Floor Space Index (FSI), also called the Floor Area Ratio (FAR), is the ratio of the total built-up area to the total plot area.
FAR and FSI share similar meanings yet exhibit a definitive difference. Both terms describe how a building’s floor area relates to its plot size. But people express them differently. FAR is a ratio, while FSI is an index. It appears as a percentage.
What is a premium FSI or floor space index?
Criteria for premium FSI:
| Road width | Premium Floor Space Index |
| 30-40 ft | 20% |
| 40-60 ft | 30% |
| Over 60 ft | 40% |
So, if you have a 30-40 ft wide road, you can build 20% more than the allowed Floor Space Index. But you must pay the required FSI premium.
The Brihanmumbai Municipal Corporation (BMC) recently allowed a 20% premium. It is on the land value at the ready reckoner rate (RR). This is for converting industrial land to commercial or residential use. You can do this when you get the commencement certificate (CC). Technicalities aside, what does this premium payment mean? This applies anywhere. It applies no matter the location, zone, or building type. A premium FSI will allow you to extend the permitted FSI. The premium floor space index is a fee the government pays to enable flexibility.
Land area x normal FSI x premium FSI in percentage = Built-up area
What factors affect the floor area ratio?
The city sets a FAR, or Floor Area Ratio, for each zone, which can vary from town to city.
City regulations and geographical constraints influence it. Some factors affect the floor area ratio. These include property size, building type, and location. So does the availability of amenities. Old city areas have different FARs than new ones.
The city can change the FAR value based on land value and development requirements. More constraints, like porches, driveways, lifts, and service areas, can affect the FAR Value.
Conclusion
The impact of the floor area ratio on land value is a double-edged sword. A higher floor area ratio can raise a property’s value and this allows an apartment complex to have bigger rentals or more tenants. For example, people want bigger apartments in crowded cities like Mumbai or Bangalore. These apartments fetch higher prices. This can lead to a significant increase in land value. However, a developer who builds a larger apartment complex on one piece of land may accidentally lower the value of an adjoining property. This is especially true if the new construction blocks a great view. The view was once a major selling point for the neighboring property. In conclusion, FAR reshapes the city. It balances land use with livability and sustainability.
FAQS
FAR 1.25 stands for Floor Area Ratio (FAR) of 1.25. This means that the total floor area of a building can be up to 1.25 times the area of the plot of land on which it is built. For example, on a 1,000 square meter plot, the maximum allowable floor area would be 1,250 square meters. FAR is a key zoning regulation used to control the density and volume of buildings in a particular area.
Floor Area Ratio (FAR) and Floor Space Index (FSI) essentially refer to the same concept but are often used interchangeably in different regions. Both terms indicate the ratio of a building’s total floor area to the area of the plot of land on which it is constructed.
FAR (Floor Area Ratio): This is a general term used to define the maximum allowable floor area of a building relative to its plot size. It is used to control the density and volume of development.
FSI (Floor Space Index): This term is used primarily in India and some other countries to denote the same ratio as FAR. It also governs how much floor area can be constructed on a given plot.