Floor Space Index (FSI)⏐Definition⏐Significance and Role in the Real Estate
Floor Space Index; the ratio of the built-up space to the area of the plot, is a regulation followed in the development control norms to control growth patterns and urban density of cities.
Floor Space Index (FSI) — Meaning
In Real Estate, FSI is one of the commonly used terminologies people should be aware of. Here, knowing the importance of FSI in Real Estate requires the Floor Space Index definition and meaning in detail. FSI stands for Floor Space Index; the area covered by the total floors of any building. It is also known as Floor Area Ratio (FAR) which further means the ratio of any building’s total floor space to the whole size of the land on which it is been constructed.
Hence, FSI helps decide how much space should be utilized on a piece of land while constructing buildings.
Premium Floor Space Index (PFSI)
In some scenarios, when it is required to extend the allowable FSI then a premium fee needs to be paid to the government. This premium fee is for particular allowable deviations irrespective of the zone, land location, and building type. The proposed land’s abutting road must be a minimum of 30 feet to avail PFSI by the builders.
Role of Floor Space Index (FSI) in Real Estate
FSI is often used to achieve equilibrium between planned, and sustainable development of the nation, and ultimately the whole world. However, some builders or developers consider FSI as a restriction but the floor space index has benefits for metro cities where construction is progressing at a fast pace. It is because FSI helps maintain the open space-to-built space ratio while also managing the skyline line of that area. In other words, the average value of FSI always ensures the sustainable development of any real estate project.
Moreover, FSI always impacts the land value in a locality. Thus, it helps to determine how the land can be used in that particular locality and whether the building under construction can be multi-storeyed. However, the FSI does not remain equal for all areas as it varies based on the number of floors. In the real estate world, FSI usage encourages uniform planning and development of cities nationwide.
In this way, calculating FSI and using it in real estate is important as it ensures the planned and sustainable development of metro cities. Hence, the government of India instructs and needs builders to determine the FSI in construction for controlling the quality and level of construction. The real estate sector should use FSI to ensure a spacious, and well-ventilated construction.
FSI Formula
To calculate the floor space index, the FSI formula needs the value of the total floor area along with the total land area for any building to be constructed.
FSI Formula:
The FSI value can be interpreted from the perspective of builders as the higher FSI value means builders can build more floors and buildings and hence sell more. It brings the affordability factor to the real estate sector of the country. On the contrary, a lower FSI value means a lesser area will be available for construction on land that incorporates an affordability factor. However, a real estate developer should not be questioned regarding NOCs if the building is being constructed as per the guidelines of FSI.
Key Factors used to Decide FSI
While determining FSI for any area or building, there are key factors to be considered. Such Factors Deciding Floor Space Index (FDFSI) are as follows:
1. Plot Location:
Generally, the FSI value of urban areas located near city areas is higher than the FSI value of distant suburban localities as well as localities far from the city. It is because of the scarcity of open land in the city centers within the localities.
2. Plot Size:
Usually, FSI has a higher value for bigger plot sizes compared to small-scale ones. Here, FSI is kept high for larger plot sizes to further promote vertical development within land-deficient city areas.
3. End-use of the Building:
The FSI value for the plots constructed to be used for commercial purposes is usually higher FSI than those being built for residential purposes.
4. Road Width:
This factor of road width plays a key role because they have fixed FSI based on the road width adjacent to the plot. Further interpretation is that the greater the road width, the greater the value of the permissible floor space index.
FSI for the Topmost Indian Cities
Based on the data collected as of June month of 2022, the FSI of the top metro cities of India is being discussed here.
Kolkata:
The city allows an FSI/FAR of 1.5 and 2.5 under the New Town Kolkata Building Rules, 2009 depending upon the road width, usage of the land, as well as plot of land density.
Pune:
The city allows an FSI of 1.10 in Pune which is set the same for further redevelopment in the city.
Hyderabad:
This is the only Indian city that has no cap on the FSI value hence FSI may lie anywhere between the 9–13 range, with an average range of 6–7, while keeping the national average ranges between 2 and 2.5.
Mumbai:
Presently, the island city allows an FSI of 1.33, which varies for commercial and residential buildings post the latest government’s revised guidelines. The FSI value is 5 for commercial development whereas for residential development the value is 3. Moreover, the suburban city areas of Mumbai allow an FSI of 5 for commercial development while the FSI value for residential development has remained unchanged at 2.5 posts these revised guidelines.
Rest, other Indian cities’ FSI is shown in the infographic sourced by Government municipal corporation websites.
Thus, FSI is the ratio of built-up space to the plot space and is widely used in city development nationwide. It plays a vital role in real estate as it encourages disciplined construction in sectors including commercial buildings, railway stations, and residential buildings for adhering to timelines. Determining FSI and following the guidelines is also advantageous for the common public, government, and development authorities of the city. It is because FSI provides a clear distinction between open and construction spaces which further prevents any unauthorized construction in the locality.
FAQs:
Does FSI/FAR include a garage area?
No, FSI/FAR never considers spaces such as garages, basements, or open parking spaces.
Is FSI and FAR the same?
Yes, FAR and FSI are the same.
What is the PFSI value concerning road width?
If Road Width is 30–40 Feet then Premium FSI is 20 %
If Road Width is 40–60 Feet then Premium FSI is 30 %
If Road Width is more than 60 Feet then Premium FSI is 40 %
