All you need to know about the Floor Space Index and the Floor Area Ratio

Thu, 09/08/2022 - 07:20

Author: JLL

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Floor Space Index, or Floor Area Ratio, is the most controversial and confusing term in real estate. Home buyers barely understand the meaning of the two because they are jargon to them. They tend to find differences between the two or leave them unanswered, dealing with their potential to understand, getting bombarded with no clarity, and end up consuming futile content. To ensure you consume the right information, we are here to help you out with the exact information that you need to be informed about FSI and FAR.

What do you mean by FSI or FAR?

Floor Space Index, or Floor Area Ratio, is the term used interchangeably in the real estate market. The proportion of a building's total covered area to its plot area is known as the Floor Space Index or Floor Area Ratio. The local municipal corporation determines the value of FAR/FSI. It is an imperative factor for any construction as it ensures maintaining the balance between the density of the population, availability of open space, impact on the environment, and advanced preparedness in the case of natural disasters.

The Importance of the Floor Space Index/Floor Area Ratio

Every city has its limited capacity and scope for development. Therefore, it is essential to have a Floor Space Index or Floor Area Ratio, which ensures that the density of the population is aligned with the availability of open space, an environmentally friendly lifestyle, and safety precautions in terms of natural disasters. The exceeding of the FAR/FSI means creating unnecessary pressure on the city. Hence, any such construction that exceeds the permitted FSI/FAR value is considered illegal construction by the governing authorities.

The FAR/FSI value is permitted based on the below factors:

• Dimension of plot

• The density of the population

• Availability of open spaces

• Availability of power, water, and sewer lines

• Types of the building (residential, institutional, commercial, etc.)

• Project impact on the environment

• Preparedness for a natural disaster

The values of FAR and FSI may vary depending upon the development scope of each city. The value may be the same for different buildings with an increased number of stories in an ongoing project. The FSI/FAR values restrict the number of plots, buildings, or land, which is sometimes interpreted as one of the factors in the stagnant growth of the city. However, there’s another term known as the Premium Floor Space Index. Let us understand it further in detail.

Premium Floor Space Index:

The Premium Floor Space Index deals with the premium properties adjacent to the wide main road. However, the minimum width is 30 ft., which changes depending upon the width of the main road. Additionally, the premium floor space index is used while accounting for various main road width scenarios that are listed below:

• Developers and builders might get a 20% boost in floor space index if the road width is between 30 and 40 feet.

• Developers and builders might get a 30% boost in floor space index if the road width is between 40 and 60 feet.

• Developers and builders might get a 40% boost in floor space index if the road width is 60 feet.

Impact of Floor Area Ratio and Floor Space Index on property

The most important factor influencing the price of a piece of land is the floor space index, or floor area ratio. FAR helps determine the dimensions of the plot, such as length and width, which further helps in finding the area of usable land. However, it differs from city to city depending on the development of the area, as increased FAR improves the quality of life by indicating the facilities and demand for a particular area. Thus, the higher the floor area ratio, the higher the price of the property and vice versa.

Hence, it is necessary to understand the floor space index or floor area ratio while buying a property. If you need more clarity on the same, reach out to us and get expert advice. Reach out to us and get expert advice.

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