Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
FAR or the Floor Area Ratio is an important term in the world of construction, development, and real estate. This means the connection between the total usable floor area in a building (as per allowed regulations), and the total area of the plot/lot on which it stands. The higher ratio is an indicator of an urban zone with dense construction. It has a direct influence on zoning regulations and codes as well. This may be worked out through a specific calculation as well.
The floor area ratio talks about a building’s total floor area, and not just its square footage figures. This includes basements, elevator zones, parking or garages, stairs, and so on. Buildings may have similar floor area ratio figures in some cases. FAR is fixed by local authorities for various cities and zones, depending on various factors. A lower FAR is sometimes an issue for the real estate or construction industry and vice versa. The calculation formula is the following- Gross Floor Area/Plot Area. This gives us the FSI (Floor Space Index). FAR directly influences the building’s height along with its overall density. A higher FAR leads to higher revenues and profitability for real estate developers.
Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
The FAR means the floor area ratio or the FSI (floor space index). This basically indicates the maximum floor space which may be built on any land parcel or plot. FAR talks about the ratio between the overall land area and the total floor area that is constructed. FAR is the ratio between the overall covered area of all the building floors to the area of the land parcel or plot. The formula is plot area x FSI = Built-Up Area. FSI means the same thing essentially. It is expressed through a figure which is applicable or allowed for every plot or land parcel individually. There are several premium FSI terms and conditions that exist as well.
Developers give high importance to FSI and FAR. These influence the commercial viability of real estate projects in several instances, along with determining whether a plot is worth constructing on or not.
