What is it?
Floor area ratio (FAR) or floor space index denotes on how much (according to the development plans and zoning laws of individual states) area you are allowed to construct on a given plot size. It is the ratio of the total floor area in the building compared with the total plot area. The constructed area would include the basic structure, walls, staircase or lobby space, if any.
How to calculate it?
FAR is calculated by a simple formula: total covered area of all floors divided by the plot area. Suppose the builder has got a plot of 1,000 sq. m and the permissible FAR, according to development plans, is 1.5. He is allowed to construct a building on 1,500 sq. m of this plot. So, in this case, you are looking at about a two- or three-storey building. FAR differs from place to place.
Why it’s important?
In case you plan to invest in a project, you can ask for details on the total construction and the total plot area. Calculating the FAR will give you a rough idea of the proposed population density in the project. Allowable FAR has a major effect on the value of the land. This also gives a fair idea of the appreciation potential of the land. If an area has a higher FAR, this means there will be more number of dwelling units or space on the designated plot area. So, a higher FAR makes a land costly. But as a negative effect of this, a densely populated housing complex would put burden on the natural resources and surroundings.