Quick answer: FAR (floor area ratio) is the total floor area of a building, counting every floor, divided by the plot area. It sets the most you may build. On a 1,000 square metre plot with a FAR of 1.5, you can build up to 1,500 square metres. FSI is the same measure, often written as a percentage: FAR 1.5 is FSI 150%.
FAR is the first number to check when you buy a plot or a flat. For a plot owner it decides how much house can be built. For a flat buyer it shows how densely a project is packed. The limit is set by the local development authority and it differs from city to city and from zone to zone.
What is FAR in construction?
Floor area ratio is the ratio of a building’s total covered area, on all floors together, to the area of the plot it stands on. A higher FAR allows more floor area on the same land. Authorities use it to control how intensively land is built on in residential, commercial and industrial zones, so that roads, water supply, sewerage and open space can keep up with the number of people living and working there.
How do you calculate FAR?
Divide the total floor area of the building by the area of the plot:
Formula:
FAR = Total built-up area of all floors ÷ Plot area
Turned around, it gives the figure most owners want:
Maximum built-up area = Plot area × Permitted FAR
For instance, if the plot is 1,000 square metres and the permitted FAR is 1.5, the built-up area that can be developed is 1,500 square metres. FAR does not say how that area is arranged. The same 1,500 square metres could be three floors of 500 square metres each or two floors of 750 square metres each, as long as the other rules described below are also met. For a step-by-step method, see how to calculate total built-up area from plot area.
What is the difference between FAR and FSI?

FAR (floor area ratio) and FSI (floor space index) measure the same thing. The difference is only in how the number is written. FAR is usually written as a ratio and FSI is often written as a percentage. FAR 1.5 is the same as an FSI of 150%. Both limit the maximum buildable area according to the size of the plot. Which term you see depends on the state and the authority.
How does FAR work with ground coverage, setbacks and height?
FAR is one of four limits that apply to a plot at the same time:
| Rule | What it limits |
|---|---|
| FAR / FSI | The total floor area of all floors added together |
| Ground coverage | How much of the plot the building’s footprint may cover |
| Setbacks | The open strips that must be left between the building and each plot boundary |
| Height limit | The maximum height or number of floors |
A design has to satisfy all four. In practice the tightest one decides what you can build. A plot may have enough FAR for another floor and still not be allowed one because of the height limit, or it may reach its FAR before it reaches the height limit. This is why the number of floors cannot be read off the FAR alone. Our post on how many floors are allowed in Noida with stilt parking shows how the rules combine in one city.
What is counted in FAR?
As a general rule, every covered floor counts. Most building bye-laws then exclude certain areas or count them differently. Depending on the authority, these can include stilt parking, basements used for parking or services, lift wells, staircase head rooms and open balconies. The list is not the same everywhere, and the conditions matter. A stilt floor that is enclosed and used as a room, for example, is normally counted.
Do not assume an area is free of FAR. Ask your architect to show the FAR calculation on the drawing, with each excluded area listed, before the plan is submitted.
What is premium FSI?
Premium FSI lets a developer or owner build beyond the normal FAR limit by paying an additional fee to the authority. Where it is offered, the permissible premium usually depends on factors such as the width of the road in front of the plot, with allowances ranging from 20% to 40% over the normal FSI.
Formula for premium FSI:
Total built-up area = Plot area × Normal FSI × (1 + Premium FSI %)
Using the earlier example, a 1,000 square metre plot with a normal FSI of 1.5 can have 1,500 square metres. With a 20% premium that becomes 1,500 × 1.2 = 1,800 square metres. Not every authority offers premium FSI, and the fee and the limits are set locally.
Why does FAR matter to a home buyer?
In an apartment project, FAR decides how much is built on the land you share with every other owner. A higher FAR generally means taller or more closely packed towers and more families using the same lifts, parking, parks and clubhouse. That can mean waiting for lifts at peak hours and crowded amenities. A lower FAR usually means more open space per home.
Before buying, ask what FAR the project has been sanctioned for and whether the builder has already used all of it. If unused or purchasable FAR remains, more towers or floors may be added later on the same land.
Why does FAR matter if you are building on your own plot?
For a plot owner, FAR is a budget and design constraint from the first day:
- Before buying a plot: two plots of the same size can have different FAR depending on the sector, the zone and the road they face. Check it before you pay, because it fixes how much house the plot can ever hold.
- While designing: the architect plans the floors so the total stays within the limit while using it sensibly.
- During approval: the authority checks the FAR calculation when it sanctions the plan. You can follow the application using our guide on checking building plan approval status online.
- During construction: building more than the sanctioned area is a violation. It can lead to penalties, refusal of the completion certificate or demolition of the extra portion, and it causes trouble when you sell or take a loan against the property.
Does FAR affect property prices?
FAR does not set property prices directly, but it affects them through density and supply. A higher FAR lets a developer build more units on the same land, which increases revenue without buying more land. It also makes a plot more valuable in high-demand cities such as Mumbai or Bangalore, because more can be built on it. The other side is that taller, denser buildings can block views and reduce light for the properties next to them.
What decides the FAR of a plot?
FAR values are set by the city’s zoning regulations. The main factors are:
- The location of the property and the zone it falls in
- The size of the plot and the type of building, residential or commercial
- The width of the road it faces
- The availability of amenities and infrastructure in the area
- Environmental impact and sustainable development considerations
Authorities revise FAR from time to time according to land demand and development needs, so always check the current rule and not what applied when a neighbour built.
How do you find the FAR for your plot?
- Read the building bye-laws or development control regulations of your development authority or municipal corporation.
- Check the allotment letter or lease deed of the plot, which sometimes states the permitted FAR and ground coverage.
- Ask a local architect. They work with these rules on every project and will know the current limit and what is excluded.
FAR tells you how much you may build, and the other rules tell you where and how high. Settle all of them with your architect before the design starts. For the next steps, read how to buy land in Noida, how to plan a G+1 building’s layout, budget and approval, and the full house construction process. If you want a plan drawn to your plot’s FAR and taken through approval, see our architecture company page.
Frequently asked questions
What does FAR 1.25 mean?
FAR 1.25 means the total floor area can be up to 1.25 times the plot area, allowing a 1,250 square metre building on a 1,000 square metre plot. It helps control density in urban areas.
What is the difference between FAR and FSI?
FAR and FSI refer to the same ratio and differ only in how it is written. FAR is usually written as a ratio and FSI often as a percentage, so FAR 1.5 equals an FSI of 150%. The term used depends on the state and the authority.
How is FAR calculated?
Divide the total built-up area of all floors by the plot area. To find how much you can build, multiply the plot area by the permitted FAR. A 1,000 square metre plot with a FAR of 1.5 allows up to 1,500 square metres of built-up area.
Does FAR decide how many floors I can build?
Not on its own. FAR limits the total floor area, while ground coverage, setbacks and the height limit decide how that area can be arranged. The number of floors is whatever satisfies all four rules together, so check each of them for your plot.
Is parking or a basement counted in FAR?
It depends on the local bye-laws. Many authorities exclude stilt parking and basements used for parking or services, subject to conditions, while enclosed or habitable areas are counted. Ask your architect to list every excluded area in the FAR calculation on the drawing.
Can I build more than the permitted FAR?
Only where the authority allows extra FAR to be purchased, often called premium or purchasable FSI, and the fee is paid. Building beyond the sanctioned area without this is a violation and can lead to penalties, refusal of the completion certificate or demolition of the extra portion.
Is a higher FAR better for a home buyer?
Not necessarily. A higher FAR means more homes on the same land, which can mean crowded lifts, parking and amenities. A lower FAR usually means more open space per home. Compare the FAR of projects along with their price and location.