Short answer
FAR (floor area ratio), also called FSI (floor space index), is the multiple of your plot area that you are permitted to build in total floor area. A 2,000 sq ft plot at FAR 1.8 allows 3,600 sq ft of total construction across all floors. Ground coverage is separate and caps how much of the plot the building may physically sit on, commonly 50 to 75 percent. Both are set by the local authority and vary with plot size, road width and zone.
LenoreTech Real Estate Team · Jaipur · Updated October 2026
The short answer
FAR is a multiplier. Plot area times FAR equals the total floor area you may build, added up across every floor.
If your plot is 2,000 sq ft and the permitted FAR is 1.8, you may build 3,600 sq ft in total. You could do that as two floors of 1,800 sq ft, or three of 1,200, or any combination, as long as ground coverage and setback rules are also satisfied.
FSI and FAR are the same thing
FSI stands for floor space index and FAR for floor area ratio. They measure the same quantity and are used interchangeably across Indian cities, with different authorities simply preferring different words. Some places express FSI as a plain number such as 1.8 and FAR as a percentage such as 180 percent. The arithmetic does not change.
One thing to check locally: a few authorities define the base differently, for example excluding certain areas from the numerator. Confirm how your local body computes it before relying on a number from another city.
How FAR actually works
Same 2,000 sq ft plot at different FAR
| FAR | Total buildable | At 70% ground coverage | Floors that implies |
|---|
| 1.0 | 2,000 sq ft | 1,400 sq ft footprint | About 1.4 |
|---|
| 1.5 | 3,000 sq ft | 1,400 sq ft footprint | About 2.1 |
|---|
| 1.8 | 3,600 sq ft | 1,400 sq ft footprint | About 2.6 |
|---|
| 2.5 | 5,000 sq ft | 1,400 sq ft footprint | About 3.6 |
|---|
Notice that the footprint stays the same. FAR controls total volume of floor space, ground coverage controls spread. You raise floors to use up FAR, you do not widen the building.
Ground coverage is a separate limit
Ground coverage is the percentage of the plot that the building may physically occupy at ground level. Setbacks, the mandatory open space on each side, are what create the remaining area.
Residential ground coverage is commonly permitted in the region of 50 to 75 percent depending on plot size and local rules. Smaller plots are often allowed a higher percentage because the setbacks would otherwise leave nothing to build on.
The mistake that costs the most: buying a plot assuming you can build on the whole thing. On a 200 gaj plot at 70 percent coverage, your ground floor footprint is about 1,260 sq ft, not 1,800. Design against the permitted figure, not the plot size.
What changes your permitted FAR
- Plot size. Bands are common, with different FAR for different size ranges.
- Road width in front. Wider roads usually allow more, because the infrastructure can carry it.
- Zone and land use. Residential, commercial and mixed use each carry their own figure.
- Building type. Group housing is normally treated differently from an individual plot.
- Purchasable or premium FAR. Several authorities allow extra FAR on payment of a charge. Whether it is available, and what it costs, changes the economics of a project completely.
What usually does not count towards FAR
Most authorities exclude some areas from the FAR calculation, which is how a building can contain more usable space than the raw multiplier suggests. Commonly excluded are basements used for parking, stilt parking, lift machine rooms, and certain service areas.
The exclusions list is local and it moves. Treat any list you read online, including this one, as a prompt to check your own authority, not as the answer.
For builders: why FAR decides project viability
For a developer, FAR is not a building rule, it is the whole business model. Land cost is fixed once you buy. Saleable area is land area times FAR. So the FAR you get determines how much product you have to sell against that fixed cost.
This is why two plots at the same price per gaj can be completely different deals. A plot on a wider road, in a zone with a higher permitted FAR, or with purchasable FAR available, yields more saleable area from the same land spend. Work the FAR before you work the price.
Run the numbers before you commit: plot area times FAR gives saleable potential, and that against land cost gives your land cost per saleable square foot. If that number does not work at the corridor price, no amount of marketing fixes it.
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FAQs
What is FAR in real estate?
Floor area ratio is the multiple of your plot area that you are permitted to build as total floor area across all floors. A 2,000 sq ft plot at FAR 1.8 permits 3,600 sq ft of construction in total.
Is FSI the same as FAR?
Yes. Floor space index and floor area ratio measure the same thing. Some authorities express it as a number such as 1.8 and others as a percentage such as 180 percent, but the calculation is identical.
How do I calculate permitted built-up area?
Multiply plot area by the permitted FAR. Then check ground coverage separately, because that caps the footprint and therefore how many floors you need to use the FAR up.
What is ground coverage?
The percentage of the plot the building may physically occupy at ground level, with setbacks making up the rest. Residential ground coverage is commonly permitted in the region of 50 to 75 percent depending on plot size and local rules.
Can I buy extra FAR?
In several authorities yes, usually called purchasable or premium FAR, on payment of a charge. Whether it is available and what it costs varies by city and changes the economics of a project substantially, so confirm it with the local body before buying land.
Does a basement count towards FAR?
Often not, if it is used for parking or services, but the exclusions list is local and changes. Check with your own authority rather than relying on a general rule.
