Why FSI is critical to Real Estate Industry
Real estate investment is a critical investment decision for any individual that involves a huge financial burden. When you are buying a new apartment, there are many rules and regulations that you will have to keep in mind. The whole buying process is quite overwhelming and the real estate terminology is quite complex too. One commonly used phrase in project brochures is FSI, Floorspace Index.
Let us explore the FSI concept
Floorspace Index is sometimes called FAR (Floor Area Ratio). FSI simply means the maximum permissible floor area that a builder can build on a particular plot/piece of land. Numerically, Floorspace Index is the ratio of building floor covered area to the raw area available on that plot/land. It is a regulation followed in the development control norms of many cities.
FSI regulates by the Development control regulation department of a particular location and according to the National Building Code of India.
What impacts FSI?
Various factors impact the FSI. The FSI will change depending on city rules & regulations. Different cities or municipalities may have different bylaws and consequently different values.
Generally, FSI/FAR value depends on the following:
- Size of the plot
- Type of building (business building, residential apartments, etc.)
- Location of the project
- Availability of power, water, and sewer lines, etc
So, FSI in the old and established part of the city may be different than permissible FSI in developing areas. Each city can revise the FSI value depending on the city’s development needs and the value of the land. The FSI number defines the potential of the plot and its commercial value.
Irrespective of whether you are building your first home or making a prudent financial investment, buying property is always a milestone. As buying property involves a significant investment of money, and it is a long-term asset, it is crucial to understand these factors and the fine print before committing to a deal. Take an informed decision at each step by educating yourself to ensure that nothing jeopardizes this significant purchase.
How To Calculate FSI For Building
FSI calculations of a potential building are tough; areas such as basements, porches, shafts, lifts, service areas, etc. may or may not be counted in every city as a part of FSI depending on the regulations of that city. For instance, in Mumbai, the basement parking area and stilt parking do not count as a part of FSI. A detailed study of the city’s laws and by-laws is required to assess this accurately.
Floor Space Index = (Total Floor Area of all the floors of the building / Plot Area of the building)
For instance, let us assume that you have a land of 1000 sq. ft and you want to construct a building on that land. Firstly, categorize the building as residential or commercial. Then, from building types find the rule and regulation of FSI regarding your building type in your city.
Let’s assume FSI is 2 for a building.
FSI = Area of all floors / Total Plot Area
Area of all floors = FSI x Total plot Area
Therefore, 1000 x 2 = 2000 Sq.ft of floor covered area on your land.
It can be either be 2 floors of 1000 Sq.ft or 4 floors of 500 Sq.ft without affecting other municipal rules (Minimum plot extent area, Front, back, side, and rear setback, parking space).
Importance of FSI
The floor space Index allows you to construct the building as per Govt. rules and regulations. If the building plan has been prepared with appropriate FSI norms, the approvals and NOCs will not be questioned.
However, there may be instances when the builders would want to increase their FSI limit. For such cases, they have to pay some funds to the municipal body to get an additional area. This is called Paid Floor Space Index.
FSI for Pune
For Pune, the authorities permit an FSI between 1.5 and 2.5, depending on various factors, as per the Draft Development Control Regulations for Development Plan Pune, and a high FAR of 5.5 is allowed for slums.
Renowned property developers in Pune like Gini Constructions apply the FSI rules to the T in all their projects FSI is of critical importance to a home-buyer. You can be assured that the ratio of open space to built-up space in an area is maintained. Having a good FSI value ensures reasonable housing prices & good development of the project. Besides, it ensures a clear skyline to the area. So, ensure to examine the FSI in a project before booking your dream home.