Planning a real estate investment is a hard decision to make. It leaves a lasting impact on your financial health. No matter whether you buy apartments or residential plots in Lucknow, considering the complex terminologies used in real estate is important. Overlooking such details may cost you or confuse you. So, when navigating the process of buying land, an apartment, or constructing a personal property, you must understand several rules and regulations. This blog discusses about FSI (Floor Space Index), one of the key terms in real estate.
FSI meaning, calculation, and importance
What is Floor Space Index?
Floor Space Index is a term in real estate. It is also known as FAR (Floor Area Ratio). The term comes into play when property transactions take place.
In layman’s language, FSI refers to the maximum floor area on which a developer is allowed to conduct the construction work. It is the part of the built-up area out of the total land area. The floor space index varies according to the rules and regulations of the governing body.
How to calculate FSI:
There is a formula to calculate FSI. It is:
FSI = (Total covered area on all floors) / (Gross plot area)
For example, suppose a plot of land area is 1000 square meters and the allowable floor space index is 1.5. Then according to the formula the allowed construction on the plot would be as follows:
Total construction area = FSI X Gross plot area
Total construction area = 1.5 x 1000 = 1,500 square meters
What’s the importance of floor space index?
FSI is important as it regulates the urban planning. It creates a balance between the available space, population, and infrastructure. While a high FSI allows more development work on a land, a low FSI means curtailing the rapid urbanisation to maintain the balance.
Developers are abided by the rules and regulations set up by the local municipal corporation. Home buyers can consider the maximum permissible area for constructing their home or apartment. Besides, they can be informed of the type of construction they can undertake on the land. This ensures, they can buy a property with enough space catering to their specific needs.
FSI also contributes to green building initiatives. Building that are certified green are granted additional FSI. Moreover, it helps manage the area density by controlling the construction on a land.
What factors affect FSI?
Factors that affect floor size index are:
- The size of the plot.
- The type of the building like residential or commercial.
- The location also determines the FSI. For example, the FSI in Lucknow would be different that those in Delhi NCR.
- City-specific laws and by-laws also determine the FSI.
Conclusion
FSI varies according to the area. It’s a vital determinant in residential or commercial establishments. When planning to buy a land or residential property, ensure to check the local laws and permissible floor space index. It is crucial to compare before making a final decision.
