How to calculate FSI and TDR?

Hi, the FSI calculation formula is pretty simple. You can calculate it by dividing the total floor area of all the building floors by the total plot area. I have shared some more information on this to help you understand things better. You can follow along to find all the relevant information.

What is the Building FSI Calculation Formula?

I have another definition for the formula of FSI calculation. But before I get to that, you must know what FSI means. FSI stands for ‘Floor Space Index’. The FSI is the measure of the maximum allowed floor area a developer can build on a given piece of land. You can find the FSI by dividing the total built-up area on a particular plot by the total plot area. 

About FSI, there is another important construction term you should be aware of. It is called the Total Development Rights or TDR. A TDR gives a builder the allowance to build above the FSI of a plot under the specific conditions of a particular location. If you want to learn its calculation, you can refer to the other responses.

I would like to wrap things up from my side. I hope you are now aware of the FSI calculation process.

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Some related information: How to Calculate FSI Using Formula? 

My father is associated with a builder. He told me that FSI and TDR are both crucial instruments for real estate developers. It is imperative to know how to calculate FSI for redevelopment, and TDR before beginning any project. The transferable development rights, which allow developers to go beyond the FSI, are likewise decided by the authorities, who also set and administer the FSI. 

Both FSI and TDR calculation are essential tools for prospective projects, and each has benefits and cons of its own.

How to calculate FSI for building?

The formula to calculate FSI is,

FSI = Total Floor Area of all Floors of the Building/Plot area x 100

The value of land in a certain area is influenced by the FSI value. This value influences whether and how much of the available land can be used for a structure. The FSI value varies from location to location and depends on the number of storeys in each building, hence it is not constant across all locations.

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Similarly, my dad also informed me,

How is TDR calculated?

The owner of the reserved property receives a printed Development Right Certificate (DRC) containing FSI credit in the form of TDR equivalent to the gross area of the plot relinquished multiplied by the allowable zone FSI.

Hope this answer would help you with how to calculate FSI for redevelopment, and with the calculation of TDR.

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One of the most crucial aspects of real estate is the FSI (Floor Space Index) and TDR (Transferable Development Rights). I learnt about it when I invested in the real estate industry. And to be honest, Mr. Cryrus’s answer really helped me out. I will add just a few more points here about TDR calculation formula and FSI calculation.

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How to calculate FSI formula?

The maximum area on a plot of land that may be used for development is referred to as the FSI. The floor area covered to available land area ratio is known as the FSI. The municipal or local authorities of the state government regulate FSI, which is typically set based on the National Building Code. Guidelines for building construction operations are provided by India's National Building Code.

The location's desirability and population density can be understood using the FSI. Nonetheless, even from an environmental standpoint, comprehension of the FSI is essential. Homebuyers must consider this because there are often fewer open spaces if the FSI is high.

The location is the main aspect that directly affects the FSI. The FSI is typically greater in areas with metros because of the constrained space. Yet, due to the enormous amount of land that is accessible for construction, FSI may be low in rural locations.

Some municipal authorities calculate greater FSIs based on land size. Due to the width of the road, any plot close to one will have a higher FSI. The FSI can be calculated using a straightforward calculation utilising the total built-up area and the plot area.

FSI Formula 

The total floor area of each floor as well as the total area of the land plot are required to compute the Floor Area Ratio (FAR) or Floor Space Index (FSI). Then, it can be estimated using:

FAR = Total Floor Area of all Floors of the Building/Plot area

FSI = Total Floor Area of all Floors of the Building/Plot area x 100

The entire plot is usable if the FAR is less than 1, according to this metric. If the value is less than 1, it means that there is undeveloped land in one or more locations. On the other hand, if the FAR number is more than 1, the storyline contains several storeys.

How to calculate TDR rate?

TDR is a crucial raw material that the builder employs to expand its size above the allowed Floor Space Index (FSI). TDR stands for transferable development rights, which are acquired in the form of certificates that the owner may then use personally or exchange for money on the open market.

This idea's major goal is to encourage developers to buy the TDR certificates that are currently on the market and use them to increase their allowable development rights. Price in TDR trading is essentially determined by the concepts of supply and demand. Real estate values are rising daily as a result of TDR trading.

The reserved rights that the owner acquired while turning over his property to the Municipal Corporation are equal to the certificate that was obtained. This transfer's primary goal is to aid in the development of disadvantaged areas.

TDR refers to the availability of a specific quantity of additional built-up space in place of the area the landowner has given up or abandoned, allowing him to use the additional space himself or sell it to someone else who needs it for a predetermined fee. It is intended to direct growth, not to slow or halt it.

This is all you need to know about

TDR calculation.

Read More: What Is FSI In Real Estate: FSI Meaning in Real Estate? What Is TDR In Real Estate?

FSI is Floor Space Index. It is a determinant fixed by the local government authorities to allow the total floor area which can be covered while constructing a building on a piece of land. Whereas, TDR is the Transfer of Development Rights, which basically means that the owner sells the rights to develop or preserve a portion of the land belonging to him/her in return for compensation. TDR is an important aspect in the construction industry as builders buy TDR certificates to develop the building area beyond the permissible Floor Space Index (FSI). Hence the TDR certificate acts as a tool to reserve rights from land owners. Now the question is how to calculate FSI and TDR. I am going to cover these aspects here for you. How to calculate FSI? To calculate FSI, you will need the total area of the plot or total area of land and you will also need to know the total built up area. Depending on these two factors, you shall be able to calculate FSI or FAR. here is the formula to calculate FSI: FSI = Total built up area/ total land area Know in great detail about how is FSI calculated here  How to calculate TDR? TDR is Transfer of Development Rights. The calculation of TDR depends on the demand and supply in the TDR trading market. Rule 5 explanation 1 of MAHA RERA Rules 2017 suggest that TDR Acquisition Cost is included while calculating the land cost, hence the final property price increases. There are many TDR calculators available online. For reference, take a look at the TDR Area calculator by the GHMC (Greater Hyderabad Municipal Corporation). GHMC TDR Area Calculator You just have to enter the required built up area, market value of TDR and market value of the receiving site. This is how to calculate FSI and TDR.