Significance of FAR for Home Buyers

Significance of FAR for Home Buyers

by Godrej Properties Limited

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Building a house is one of the most significant decisions in anyone's life, encompassing financial investment and aspirations for comfort, security, and a sense of belonging. In pursuing their dream of building a house, individuals often consider various factors like location, amenities, and affordability. However, one crucial aspect that plays a fundamental role in shaping the quality of life within it is the Floor Area Ratio (FAR). Let’s understand how FAR affects the cost of building a house and urban living overall. If you are building a new house, FAR is something that you must be aware of to determine the house construction cost. Let’s understand what FAR is.

What is FAR?

Floor Area Ratio (FAR) is a critical factor in home construction cost planning, influencing the size, density, and overall design of a structure in a given area. Essentially, FAR determines how much floor area can be constructed on a plot of land relative to its size and, subsequently, the cost of building a new home. For individuals undertaking house construction, understanding FAR is essential as it directly impacts the average price to build a house, the quality of life, amenities, and the market value of the property. Let’s explore the significance of FAR and how it affects home construction cost per square foot. 

What Is the Floor Area Ratio Formula or FSI Calculation Formula?

Calculating the average cost of construction per square foot is simple with the FSI Calculation Formula. The Floor Area Ratio (FAR) is calculated using the formula below:

FAR = Total Covered Area of all Floors/Area of the Plot

​To put it in simpler words, the Floor Area Ratio (FAR) represents the proportion of the total covered area of a building's floors to the total area of the plot of land. For instance, if you have a land plot of 500 square meters and decide to construct a building with a total covered area of 750 square meters, the FAR would be calculated based on the ratio of these two numbers.

Using the formula for FAR:

FAR = 750 sq m/500 sq m

FAR = 1.5

So, in this example, the FAR is 1.5. This means that the total covered area of the building is 1.5 times the size of the plot of land. This formula can also help you calculate the land value.

Common Factors That Impact FAR

  • Zoning regulations: Municipalities control how close buildings can be and how cities grow by setting limits on building sizes called Floor Area Ratio (FAR) based on zoning rules.
     
  • Land use:  FAR varies depending on whether the land is designated for residential, commercial, industrial, or mixed-use purposes.
     
  • Infrastructure: Infrastructure Capacity: Local infrastructure, such as roads, utilities, and public services, can impact FAR by influencing development intensity and density.

The Importance of FAR for Home Buyers

By understanding the importance of FAR regulations and their implications, homebuyers can make informed decisions about their real estate investments.

  • It helps the homebuyers to know the maximum building density allowed on a piece of land.
     
  • FAR Influences property values and investment potential;
     
  • Guides building design and architectural character.
     
  • Understanding FAR provides insights into future development and neighbourhood dynamics.

In conclusion, FAR greatly affects urban development and directly influences homebuyers' decisions. Knowing its importance helps buyers make better choices for their dream home and the surrounding city.

 

Frequently Asked Questions

Q. What is the minimum width of the abutting road for premium FSI?

A: The minimum width of the abutting road for premium FSI (Floor Space Index) varies depending on the local building regulations and zoning laws in different regions. It's essential to consult the relevant authorities to determine the exact requirements for premium FSI in a particular location.

Q. What does 0.5 FAR mean?
A: A FAR of 0.5 means that the total floor area of a building can be up to 50% of the area of the plot of land on which it is located.

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