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What is FSI (Floor Space Index): A Deep Guide

Sep 21, 2023
What is FSI (Floor Space Index): A Deep Guide

Real estate is one of the most important sectors of an economy. It is a deciding factor for many businesses. It also plays an important role when buying properties for personal use.

People want to invest in real estate, which also gives them a higher return in the future. This, in turn, depends on many factors, such as demand, supply, and accessibility.

Understanding the dynamics of the real estate sector is a lengthy process, but it can be broken down into some smaller key concepts. One such concept is the FSI, or Floor Space Index.

In this article, we explain the floor space index meaning in detail and explore its depths with discussions on subtopics such as the FSI calculation formula, factors affecting FSE, etc.

What is FSI?

Floor Space Index means the maximum allowed floor area on a given piece of land or plot. It depicts the intensity with which the land is used. A higher FSI indicates that the floor area is much higher with respect to the piece of land. The opposite is valid for a lower FSI. Hence, the popularity of a locality can be ascertained by its FSI. A higher FSI would be favourable for a business owner as it would mean a higher footfall of customers.

FSI is also essential for homeowners deciding which locality to buy a home in.

In general, FSI is higher in the cities than in the villages. This is because land is available in abundance in the villages.

Floor Space Index Formula

The calculation of FSI (Floor Space Index) can be done using just two attributes-

  1. Total floor area of all floors of the building
  2. Plot area

The formula for Floor Space Index Calculation is given by:

FSI = Total Floor Area of all floors of the building/Plot Area *100

FSI is expressed as a percentage. If the FSI of a plot of land is less than 100%, it means that some portion of the land has no construction on it. On the other hand, if the FSI of the land is greater than 100%, it means the plot of land has a multi-floored building over it.

FAR (Floor Area Ratio)

This is another concept related to floor space and real estate. Floor Area Ratio indicates what fraction of the total plot area is the sum of all floor areas of the entire building.

FAR = Total Floor Area of all floors of the building/Plot area

Importance Of FSI

FSI is an important factor that people consider while investing in real estate. The importance of FSI can be explained in the following ways:

  • Planning - It helps in the proper planning of the municipalities or cities. With an FSI limit, homeowners or business owners plan their projects accordingly, leading to the overall development of the locality, which benefits everyone.
  • Indication - FSI value acts as an indicator for people buying properties. For example, if someone wants to buy a plot of land to build a single-story house in a non-congested neighbourhood, he would prefer a lower FSI.
  • Environmental concerns - FSI limit helps keep over-construction in check. This would help prevent any catastrophe due to excessive pressure on the land.
  • Earnability - A real estate developer would prefer a high FSI plot. He would build multistory buildings and earn huge profits by selling or renting them.

Factors Affecting FSI

FSI differs from city to city because many factors influence the FSI value in a town. The local authority decides the FSI based on certain factors:-

  • Availability of basic amenities - Amenities like availability of water, sewer line facilities, etc., affect the FSI of the cities.
  • Population of the city - Highly populated cities such as Mumbai have low FSI, so overcrowding can be avoided.
  • Building’s location - FSI limit helps keep over-construction in check. This would help prevent any catastrophe due to excessive pressure on the land.
  • Earnability - Areas near the metro tend to have high FSI due to a lack of space.

Floor Space Index For Different Cities Of India

Different cities in India have different FSIs because of differences in their social, cultural, and geographical factors. The FSI of some of the major Indian cities are discussed:-


The FSI in Delhi is between 1.2 and 3.5, according to the modified Delhi Master Plan 2021.


Bangalore has an FSI ranging from 1.75 to 3.35. This is because Bangalore has three types of localities: Intensely Developed, Moderately Developed, and Sparsely Populated.


The FSI in Mumbai suburbs is 2.5, while 1.33-3 in the island city.


The FSI value varies between 1.5 to 2 in Chennai.


Venturing into the real estate field might need you to learn the nitty-gritty of the domain. This is true even for people who buy homes for personal use. FSI plays an essential role in making decisions regarding purchasing a home.

If you want to finance your dream home, you can consider SFMG Grihashakti housing loans. There is also a minimal processing fee. Furthermore, the application process is 100% online and paperless. Check out the home loan document requirements here and apply today.


What is the value of FSI?

The value of FSI differs from state to state and is dependent on many factors. The FSI in the national capital Delhi lies between 1.2-3.5.

How is FSI calculated in India?

FSI is calculated using the formula, FSI = Total Floor Area of all floors of the building/Plot Area *100

What is 1.5 FSI?

A 2.5 FSI means that with a plot of 1000 sq metres, a total floor area of 1500 sq metres can be constructed.

What is 2.5 FSI?

A 2.5 FSI means that with a plot of 1000 sq metres, a total floor area of 2500 sq metres can be constructed.

Disclaimer: *Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you wish to know more about our products and services, please contact us.

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