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Everything you need to know about “FSI”

August 8, 2015 · 3 min read

What is FSI?

Floor space Index or FSI is truly a mystic number in Real Estate across the world. Basically this
number denotes the upper limit to the built space you may construct on a given plot, It is the ratio
of allowed built-up area to the plot area. Thus FSI directly impacting how much a developer
benefits from a particular land parcel.

Floor area ratio = (total covered area on all floors of all buildings on a certain plot, gross floor
area) / (area of the plot)

An architect can plan for either a single-story building consuming the entire allowable area in one
floor, or a multi-story building that rises high above the plane of the land, but which consequently
results in a smaller footprint/floor plate than would a single-story building of the same total floor
area.  (As shown in the Image). Certain types of spaces, such as basements, parking areas, and
utility rooms, are exempt from FSI, which means that they do not need to be counted in the FSI
calculations. By combining the horizontal and vertical limits into a single figure, some flexibility is
permitted in building design, while achieving a hard limit on at least one measure of overall size.
The Floor Space Index is dictated by the government through its authorized agencies. It varies
from Location to Location, and is also transferable from one area to another.

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12/14/2020 Everything you need to know about “FSI” - | Real Estate NEWS

A post-World War II innovation from America introduced a new form of building control. This is
called FSI (Floor Space Index) in India and FAR (Floor Area Ratio) everywhere else in the world. It is
the ratio of built-up area of all floors on the plot to the area of the plot itself. The FSI regulation was
welcomed by architects as a new breed of FSI friendly Architects were born, they liked the design
freedom to reduce the footprint of the building and increase the number of floors, while still
observing the FSI rule which sets the total built-up area allowable on each particular plot. But from
the authorities’ point of view, the FSI specified has to be carefully managed to ensure that the
extent of built-up floor space permitted in a locality does not exceed that locality’s infrastructure
capacity, in regard to water supply and sewerage of course but, more importantly, in regard to
transport and crowding on the streets.

Di erence between FSI and Fungible FSI

The word fungible – from the latin root fungiblis – describes something that acts as a replacement
for something else. The municipal corporation of Mumbai introduced this system to curb misuse of
existing building regulations by developers. Developers would build space over and above the
allowable FSI by the means of some grey areas in the building regulations. These grey areas
centered on things that were free of FSI, or not counted in FSI calculations, such as flower beds,
services sha s, and balconies. In the fungible FSI system, the allowable FSI on a plot is increased
by 35%, with a maximum cap on the total construction area, with no exemptions. This serves to
reduce ‘overbuilding’ on plots by developers. The fungible FSI seeks to act as a replacement for or
a legalization of the misuse of regulations, but with a clear mathematical limit that should not be
exceeded. As of 2015, fungible FSI is applicable to all plots in Mumbai with the exception of those
that fall under Coastal Regulation Zone (CRZ) limits.

Current status of FSI in Mumbai

The Floor space index in Mumbai varies depending on the development ensued upon. Generally
an FSI of 1.5 – 1.6 is considered in the island city, and FSI of 1 in the suburbs. However for
redevelopment, slum rehabilitation, making common recreational areas, construction low range
apartments etc., the Government helps compensate the builder by providing additional FSI, so
that the developer can benefit out of rehabilitating old constructions, making more public
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usability areas etc.  Developers can also buy an additional FSI by paying premium to it, so as to
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build dry areas, flower beds etc.

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New FSI Policy – “Mumbai’s Dra Development Plan 2034”
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12/14/2020 Everything you need to know about “FSI” - | Real Estate NEWS

The Development Plan 2034 has come up with maximum permissible floor space index (FSI) for
each plot area in Mumbai. Realty players have welcomed the Municipal Corporation’s proposal to
increase floor space index (FSI) up to 8 in the Development Control Rules to be applicable till 2034.
The permissible FSI will eventually increase as per the locations with better infrastructure
connectivity, accessibility, area’s future potential, its proximity to transit stations and the existing
levels of FSI consumed.

The Pragmatic side of New FSI Policy

1. The new Development Plan proposes FSI to accommodate the expected increase in
Mumbai’s population both on residential and commercial front.
2. Transit-oriented development is encouraged by higher FSI provided for areas that are well
connected by public transport and quite close to railway stations and existing and upcoming
metro stations.
3. The new DP finally removes all ambiguity around calculations of what is counted in FSI; now,
there is nothing that can be built and not be accounted for as free of FSI. This brings in
much-needed simplicity and transparency, and reduces the scope for manipulation.

The Idealistic side of New FSI Policy

1. For the Western Suburbs, higher FSI may be largely impractical because of the civil aviation
funnel and road width requirements
2. Developers are dis-incentivized from providing amenities such as swimming pools and
clubhouses in their projects, as they are part of FSI to be paid for but do not generate direct
revenue

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