How to Calculate FSI and TDR

Floor Space Index (FSI)

Floor Space Index (FSI) means the quotient of the ratio of the combined gross floor area of all floors, excepting areas specifically exempted under these regulations, to the total area of the plot

FSI = Total covered area on all the floors/Plot area

FSI is the ratio between the built-up area allowed and plot area available (FSI = Total Covered Area on Floor ÷ Plot Area). If FSI is 1 then on a plot of 100 square meters, one can build 100 square meters of built-up area and with setbacks (area of the land between the front building line and street alignment) and open spaces, the building can be higher than one floor.

In uncomplicated language, the higher the FSI, the higher is the built-up area.

Transferable Development Rights (TDR)

An important raw material which the builder uses to develop its area beyond the permissible Floor Space Index (FSI) is known as TDR.

TDR means transferable development rights which are obtained in the form of certificates which the owner can subsequently use for himself or can trade it in the market for cash.

The main purpose of this concept is that developers purchase the TDR certificates available in the market and utilize them for increasing their permissible development rights. In TDR trading, price is primarily based on demand and supply concept.

Due to the TDR trading, the real estate prices are increasing day by day.

The certificate obtained is equal to the reserved rights obtained by the owner on surrendering his property to the Municipal Corporation. The basic motive behind this transfer is to facilitate the development of the underdeveloped areas.