There are numerous factors to consider when it comes to real estate and construction. From architectural designs to zoning regulations, one key term plays a crucial role to determine the feasibility and potential of a real estate property is the “Floor Area Ratio” (FAR). In some countries, it is also called ‘Floor Space Index’ or FSI. Both terms represent the same significance.
Let us explore Floor area ratio or FAR to know its meaning, formula, significance in various cities, and its importance in residential building projects.
What is Floor Area Ratio (FAR)?
Floor Area Ratio, or FAR, is a crucial metric used in urban planning and real estate development. It is a numerical value that represents the relationship between the total floor area of a building or structure and the size of the plot of the land on which it is built, or proposed to be built. FAR is a zoning regulation that helps control the density and scale of construction in a given area. In brief, FAR defines how much floor space can be constructed on a specific piece of land, in a particular zone.
Floor Area Ratio Formula
The Floor Area Ratio formula is relatively straightforward, which says:
FAR = Total Floor Area of the Building / Total Area of the Plot
Let us break it down further:
Total Floor Area of a Building: This includes all the floor space within the building. This is including both residential and commercial areas.
Total Area of the Plot: This is the entire piece of land on which the building is located. This is including any setbacks or open spaces, landscaping etc.
By dividing the total floor area by the land area as mentioned above, you get the FAR for that particular project.
For example, say we have a plot of 6 Acres. And the total built up area of the buildings to be built on the land is 500000 square feet. Then,
Floor Area Ratio or F.A.R. = (500000 / 10.76) / (6 x 4047) = 1.91
Here, we have divided the built up area with 10.76 to convert it to square meter unit from square feet. Also, the area of the land (6 Acres) is multiplied with 4047 to convert it to square meter. The ratio comes 1.91.
Significance of FAR in Various Cities
One of the fascinating aspects of FAR is that it may vary significantly from one city to another and even within different zones of the same city. This is because Floor Area Ratio (FAR) is a tool that allows the local authorities to manage urban development according to the unique needs and characteristics of their particular area.
On what parameters does the allowable FAR depend?
In a city, town or rural area, the governing municipal body decides the allowable Floor Area Ratio. Several factors contribute in the finalization of allowable FAR of a particular area. It may even vary within various parts of a big city.
Population is one major factor for FAR of a particular area. In densely populated cities like New York City, you will find high FAR values, allowing for tall skyscrapers and compact development. In contrast, in more suburban areas, FAR values may be lower to maintain a more spacious and less crowded environment.
Also, the soil characteristics, especially the bearing capacity plays a major role on FAR because it is a factor to consider while exploring how much tall structure is possible to build at a particular city or location. For soil with less bearing capacity higher structures will require piling, thereby increasing the cost of the building. If the increased cost makes the project unfeasible then lower FAR will be allowable. Municipal bodies consider these factors while finalizing the allowable floor area ratio of a particular area.
FAR also depends on the nature of construction, nature of the building’s space or land, and growth pattern of the city.
Understanding the FAR regulations in your specific location is essential for any real estate or construction project. It can greatly influence the design, size, and potential profitability of your endeavor.
FAR in Residential Building Projects
FAR plays a very significant role in the construction of residential buildings. For builders and developers, knowing the FAR regulations for a particular area is crucial for layout finalization and property planning. It would affect the number of units proposed to be built on a given land and the overall design.
For instance, in a city with higher FAR allowance, there would be more apartment complexes with higher stories. On a contrary, in areas with lower FAR limits, single-family homes with larger yards are mostly visible.
What is a Good Floor Area Ratio?
A “good” FAR depends on various factors, including the specific goals of your project, the local zoning regulations, and the market demand in the intended area. A higher FAR is generally desirable in a bustling urban area, where maximizing the use of limited space is essential due to space constraint. On the other hand, in a suburban or rural area, a lower FAR will be more appropriate to maintain a spacious and open environment.
Ultimately, a “good” FAR is one that aligns with your project’s objectives, and complies with the local regulations simultaneously.
Floor Area vs Carpet Area
While FAR deals with the total floor area of a building, it is important to understand the difference between floor area and carpet area of a building. Floor area includes all space within the walls of the building, while carpet area refers to the actual usable space within a unit, excluding walls and common areas.
It is crucial to communicate buyers or tenants about the carpet area, as this is the space for use. Understanding this distinction helps buyers and sellers to prevent any misunderstandings or disputes in the real estate transactions.
Floor Area Ratio Examples
Let us look at a couple of examples to illustrate how FAR works. These examples highlight how FAR directly influences the size and scale of construction projects.
Example 1: In a city with allowable FAR of 2.0, on a 5,000 square-foot plot of land you can construct a building with a total floor area of 10,000 square feet (5,000 sq. ft. x 2.0).
Now, you can keep the ground coverage (footprint of the building) 2500 square feet and build 4 floors. Alternatively, you can keep the ground coverage (footprint of the building) to get more open spaces, and build 5 floors. In either cases, the FAR is 2.0, but the number of floors is one more in the later.
Example 2: In a city with a FAR of 0.5, on the same 5,000 square foot plot, you can only build a structure with total floor area of 2,500 square feet (5,000 sq. ft. x 0.5).
In most of the municipal areas there are norms regarding the open spaces also, especially for the big apartment complexes. Together with minimum open space limit, allowable FAR is a deciding factor on the building footprint and number of floors.
Conclusion
Floor Area Ratio (FAR) is a critical factor in real estate and construction. It shapes the way Architects design the buildings and develops in various cities. It is essential to understand the FAR regulations and their applications in your city for successful planning and compliance for your project, whether you are a Developer, an Architect, or simply interested in real estate.