Floor Area Ratio
A complete guide to what "Floor Area Ratio" means in real estate and how it applies to property transactions in India.
Definition
Floor Area Ratio (FAR), also known as Floor Space Index (FSI) in some Indian states, is the ratio of the total built-up area of a building to the total area of the plot on which it is built. A higher FAR allows more construction on the same plot.
Use of Floor Area Ratio in Real Estate
FAR is a critical urban planning tool that controls building density and is set by municipal development authorities. In Bangalore, BBMP and BDA regulate FAR based on road width, zone classification, and land use. For example, a plot of 2,400 sq ft with a FAR of 2.0 allows a total built-up area of 4,800 sq ft across all floors. Developers often purchase additional FAR (premium FAR) to maximise construction potential.
Key Takeaway
Understanding "Floor Area Ratio" is essential for making informed real estate decisions. Always consult a qualified professional for advice specific to your situation.
Disclaimer: This glossary is for educational purposes only and does not constitute legal or financial advice. Definitions may not reflect the most current regulatory changes. Please consult a qualified professional for guidance specific to your transaction.