FSI in Indian real estate | FSI full form in real estate 

What is FSI full form floor space index (FSI)?

The full form of FSI (Floor Space Index) of a plot is known as Floor Space Index, also known as Floor Area Ratio (FAR). The FSI is used by the GOI to determine the maximum permissible amount of construction that a developer can carry out on a plot. The FSI allows a developer to expand the construction area to maximise the land use without falling into danger zones or going beyond the norms or limits laid down by the authorities.

As the land owner or the developer, the authorities have a duty of care to the people living in the vicinity of the plots where the construction is taking place. The higher the value of the FSI, the more space that a developer will need to construct taller buildings or to use the land extensively.

FDI inflows in the real estate sector have forced developers to go beyond FSI limits. The government authorities almost had to loosen rules and regulations to allow more foreign direct investment in the sector. This has led to a massive inflow of foreign direct investment into the real estate sector in India. This has caused the construction of high rise buildings across the country. Due to the large number of people in the country, high rise towns are spread all across the country. This has been beneficial for everyone, whether you are a land owner, a real estate developer or a home buyer.

Vertical growth in cities has led to better utilisation of land and has supported the government's vision of sustainable urban development. The government of India regularly revises FSI limits to meet the needs of the real estate industry as people want to purchase high rise towers as they are affordable.

In urban India, the FSI value is much higher than in rural areas, and the real estate industry is continuing to push the boundaries to new heights in the metro cities and their suburbs.

FSI Formula

The FAR (floor area ratio) and FSI (floor area standard) are calculated by multiplying the floor area of all bottoms of a building by the plot area multiplied by 100. A FAR greater than 1 indicates that more than one story will be built on the plot. A FAR less than 1 indicates that the entire plot will be usable and that construction will be allowed as the FAR indicates.How to Calculate FSI?

The formula for FSI in real estate is as follows: FSI = Total Built Up Area / Total Plot Area / FSI (FSI full form in real estate) / Floor Area Ratio / Total Built Up Area = FSI * Total Plot Area / Total Built up Area = 1.5 * 1,000 Square Meters / 1500 Square Meters / FSI / FSI

Conclusion

There is considerable scope for FSI revision in India in the light of the demand outlook for the real estate sector in the coming years. The real estate industry in India is projected to be worth USD 1,000 billion by 2030, which is more than double the current real estate market size in India. The demand for residential properties is expected to increase significantly as the middle class wants to live in cost-effective housing in the outskirts of major cities and Tier-2 cities. The government will have to tread carefully as it will need to ensure that the FSI limit doesn’t impede the desired pace of growth in the real estate business of India.