What Is Floor Area Ratio In Real Estate

Floor area ratio far is the ratio of a building s total floor area zoning floor area to the size of the piece of land upon which it is built.

What is floor area ratio in real estate.

Sometimes referred to as the floor space index fsi the far helps developers and commercial real estate owners determine if a property is economically viable. Breaking down floor area ratio far the far accounts for the entire floor area of a building not simply the building s footprint. Far stands for floor to area ratio. Floor area ratio far is the measurement of a building s floor area in relation to the size of the lot parcel that the building is located on.

The terms can also refer to limits imposed on such a ratio through zoning. The strict definition of far is the ratio of the total building floor area to the size of the plot. In other words it is a ratio between a building s total constructed floor area and the land area. The concept of far is really one that helps to explain how much density you can build on a given site.

The floor area ratio far or floor space ratio fsr denotes the maximum floor space that can be constructed on a given piece of land. It is also known as fsi floor space index in some markets. What is the floor area ratio. It is often used as one of the regulations in city planning along with the building to land ratio.

The ways of defining floor area depend on what factors of the building should or should not be included such as external walls internal walls corridors lift shafts stairs etc. The terms can also refer to limits imposed on such a ratio. The floor area ratio far is a commonly used real estate metric. It is the ratio of a building s available square footage to the total area of the lot on which the building sits.

Floor area ratio often referred to simply as far is an essential concept for anyone who is concerned with the way zoning can affect a neighborhood. However such a description will fly over the heads of most people so it helps to simplify it. The floor area ratio is the relationship of the total usable floor area of a building relative to the total area of the lot on which the building stands. Floor area ratio far is the ratio of a building s total floor area gross floor area to the size of the piece of land upon which it is built.

The ratio itself is done by dividing the allowable floor space in a project by the space on the property itself. Pronounced f a r it can be challenging but it s important to understand. The purpose of far. In architectural construction and real estate floor area floor space or floorspace is the area measured as square feet or square metres taken up by a building or part of it.

In layman s terms far is the total floor area including all the space covered by the floors in the building divided by the total area of the land on which the building set.