Floor area ratio
The floor area ratio (FAR) is a measure of the total permitted floor area of a building, in relation to the total area of the lot (or plot) on which the building stands:
A higher ratio indicates a higher-density environment.
The concept emerged in Europe in the 19th century, and was then taken up in the USA in the 20th century as a form of zoning control for rapidly developing cities. FAR is now often used by urban planners, particularly in the USA, for assessing, or restricting, planning permissions, setting a limit on the 'load factor' generated by new developments, beyond which undue stress is placed on a city and its infrastructure.
A low permitted FAR may deter development, whilst a higher FAR allows more usable area, and hence higher potential sales.
The same FAR value can be achieved by buildings with varying numbers of storeys. For example:
1,000 sq. m building with one storey / 4,000 sq. m lot = 0.25
500 sq. m building with two storeys / 4,000 sq. m lot = 0.25
An FAR of 1.0 allows the developer to build a one-storey building over the lot, or a two-storey building over half the lot, or a three-storey building over one-third of the lot, and so on.
An FAR of 2.0 allows the developer to build a two-storey building over the lot, or a four-storey building over half, and so on.
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