What Is Floor Area Ratio In Real Estate

The floor area ratio far is a commonly used real estate metric.

What is floor area ratio in real estate. However such a description will fly over the heads of most people so it helps to simplify it. What is the floor area ratio. 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. 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.

A higher ratio usually indicates a dense or. The ratio itself is done by dividing the allowable floor space in a project by the space on the property itself. Breaking down floor area ratio far the far accounts for the entire floor area of a building not simply the building s footprint. 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.

Pronounced f a r it can be challenging but it s important to understand. In other words it is a ratio between a building s total constructed floor area and the land area. In other words the higher the far the larger the building you can build. 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.

The terms can also refer to limits imposed on such a ratio. 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. Far stands for floor to area ratio. Far is expressed as a decimal number and is derived by dividing the total area of the building by the total area of the parcel building area lot area.

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 concept of far is really one that helps to explain how much density you can build on a given site. 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. 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.

The terms can also refer to limits imposed on such a ratio through zoning. 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. It is often used as one of the regulations in city planning along with the building to land ratio. It is the ratio of a building s available square footage to the total area of the lot on which the building sits.

It is also known as fsi floor space index in some markets.