Floor Area Ratio (FAR)
Definition of "Floor Area Ratio (FAR)"
The ratio between a structure's total floor area and the total land area of the land upon which it is constructed. The floor area ratio definition is the ratio of the total amount of usable floor area that the building has to offer the homeowner, from the total area of the property on which the building has been constructed. The floor area ratio must conform to the building code's floor area specifications. A bigger floor area ratio is likely to represent urban highly populated areas, with high population density per square mile where there are more high rise apartment buildings and condominiums instead of detached family homes. The area ratio is used by local governments for use with zoning codes issues and delimitations.
The FAR (Floor Area Ratio) is calculated by dividing the total building floor area by the total building lot square area:
Floor Area Ratio = Total Building Floor Area/Gross Lot Area
What is the Floor Area Ratio?
When you consider the floor area ratio you don’t only look at the footprint of the building but at the whole floor area of the building. The things that are taken out of the equation in this calculation are all the unoccupied areas of the area like basements, stairs, elevator shafts, and parking garages.
What variates the floor area ratio of a city are factors like population density, patterns of population growth, and activities that involve construction in a city, residential neighborhoods, condominiums, etc. This affects the nature space, parks in cities where residential areas take over. These floor area ratios of cities are determined by local governments that enforce regulations and restrictions of new constructions to stabilize the balance of this ratio.
Being a key determinant of developments in any country, the floor area ratio is a deterrent to construction but it keeps it regularized. Not only the real estate industry struggles to maintain an acceptable level of floor area ratio, but any kind of industry throughout the country in order to open up space and the resources of the land to the real estate developers. A high floor area ratio allows developers to construct buildings for homebuyers, businesses, and industries, which increases sales and provides supply for increasing demand.
Popular Real Estate Terms
Represents a means of appraising a building by simply multiplying its square foot cost by the total amount of square feet in the structure being evaluated. Two or more buildings may then be ...
People often use the term in their everyday discourse, yet many wonder what the meaning of common law genuinely implies. Common law refers to a system of jurisprudence based on court ...
Cubic unit of measure for a board one-foot long, one-foot wide and one inch thick, or 144 cubic inches. These measurements are not actual, since they are stated prior to finishing and ...
Government program of providing low interest rate mortgages to low-income qualified buyers. In the tandem program, the Federal National Mortgage Association (FNMA) purchases low interest ...
As a legal term, abandonment defines a deliberate renunciation of rights to an asset or a business relationship. What does abandonment mean in real estate? In real estate, abandonment, ...
The time period a real estate investment is held. The return is tied to the time period of the investment. The period is used for income tax purpose to determine whether a profit earned or ...
Urbanized area in and around a major city. The metropolitan area may overlap county and state boundaries and may encompass a city, its suburbs, and the orbit of its social and economic ...
When you sign a Listing Agreement with a real estate broker or agent, he or she has a fiduciary responsibility to represent your interests exclusively. However, should another client ...
English-style home. It is usually 2-stories high. The roof is of a hip type. The chimney is on the side of the home. ...
Have a question or comment?
We're here to help.