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Why is FSI Important in Real Estate?

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A real estate investment is always considered a highly significant life choice along with being a very complicated one. There will be a permanent effect of the proper decision on real estate on your present and future. The process of investing in real estate or purchasing a new home is a bit overwhelming as well as complicated. It is extremely vital to be aware of or to learn some of the basic concepts of the real estate industry before opting for investing.

If you are looking for a new residential apartment, planning for purchasing land or constructing your own home, there are a plethora of guidelines along with regulatory necessities that you are required to take into consideration. It is a fantastic idea for becoming familiar with the technical terms that are taken into use in the real estate industry, as these make y our process much more manageable.

Floor Space Index is one such kind of technical term that we very commonly hear in dealing with or proceeding in the real estate industry. In this article, we are going to know exactly what Floor Space Index (FSI) is.

What is the Floor Space Index?

The calculation of the floor space index is done by dividing the total area of the floors of the building by the total area of the plot on which floors are situated. The floor space index is also popular as the Floor Area Ratio. The total area of all the floors is renowned as the total build-up area. It is the ratio of the two terms that are mentioned above.

This number represents the total area (available on all the floors) on which construction can be done on a plot. FSI according to the regulations established by the local administration may be diverse from one location to another. The calculation of the floor space index is done by making use of a plethora of factors. The value of FSI changes which is dependent on the type of building, city, plot size, construction, zone, type of property, location, and many others.

Mainly the FSI refers to the total number of floors that may be constructed on the plot. Real estate developers, individual homeowners, and even renowned real estate companies must follow the guidelines issued by the BDA and BBMP in the city of Bangalore.

The calculation of the floor space index and floor area ratio incorporates a large number of components that have been established by several local and State government authorities. You might have heard of the premium Floor Space Index. In simple words, it is nothing, but it is basically an amount that is required to be paid for constructing an extra floor or for purchasing extra land.

How to Compute the Floor Space Index?

The calculation of the Floor Space Index can be done by making use of the formula which is a bit easy. Here, you can find the formula for calculating the FSI.


1. Formula for Floor Space Index = Total constructed or built-up area divided by the Total Area of the Plot
2. Total built-up area = Total area of the plot * FSI permitted


1. There is also something that is popular in the Gross Floor Area.
2. The GFA is the entire square footage of the building that excludes areas, for instance, the balcony, walkways, parking lot, driveways, front, and backyard
3. Yards
4. The GFA is the entire square footage of the building that excludes the areas such as the balcony, parking lot, walkways, driveways, etc.

Importance of FSI

. The FSI value impacts the land value in a particular area. This value affects regardless of whether and how much of the available piece of land can be taken into use for a building. The FSI value may be diverse from location to location and from one building to another on the basis of the number of floors, so it will not be fixed across all localities.

. Rules and regulations related to floor space index or floor area ratio must be established just due to a simple reason of managing the density of population in a particular region. In addition to this, there is also a limit for each area or plot that takes the population density. On a plethora of occasions in the past, there have also been witnessed cases of illegal construction. However, the prevalence of such kind of cases will hike even further in the absence of a floor space index.

. The FSI serves with the guarantee of organized construction in each sector, that includes railways & metro stations, commercial & residential buildings, etc. for adhering to timelines that in turn make the city planning and development much more uniform.

. Higher FSI for builders makes them highly capable of building more along with subsequently selling more that in turn also affects affordability. It is going to be useful in those areas where it is a bit urgent to serve with housing for everyone. If the FSI is lower, There will be the use of less space for construction on that plot of land. If the construction of the building is done by following the FSI, it signifies that builder doesn't have any concerns about NOCs.

. The two parts of FSI are the Basic and Fungible floor space index that can be taken into use in the construction of the building. The maximum FSI that might be applied to a plot is the sum of these two aspects.

Free Basic FSI: This FSI is Free of Cost and Readily Available Fungible FSI

To purchase this component of the FSI there is an utmost necessity to contact the local authority. In addition to the fundamental FSI, there is the availability of some FSI for purchasing. You must purchase it by paying a premium that is determined by the local circle rates or Ready Reckoner. It amount will be determined by the relevant governing authority or both.

Floor Space Index- Bangalore

There are three different types of localities in the city of Bangalore which are Intensely developed, Sparsely developed, and Moderately developed. The range of the FAR or FSI is between 1.75 & 3.35. It is dependent on this category, road width, & the size of the plot.

What are the Factors that Influence FSI?

. The FSI of a building might be significantly impacted by a plethora of variables. Just a few of those incorporate the actual size of the plot, geographic location or city zone, building type, and the necessary facilities that might be served for the building.

. The location of the land might have an effect on its FSI. There might be diverse FSI for developed areas contrary to FSI in the towns that are more established along with being older neighborhoods. There is an option for each city to change the value of FSI according to the value of land and development necessities. The FSI score is the thing that determines the perspective and market value of a plot.

Take Away

While it is very simple and clear to calculate the FSI, it might be a bit challenging to determine the actual FSI of a building as there are several areas that incorporate, elevators, passageways, basements, verandas, community facilities, etc. that may or may not be included in the calculation which is dependent on the regulations of your city. You must always check out the guidelines of your city related to FSI before you plan to purchase a house.

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