What is FSI—Floor Space Index? Its Impact on Hyderabad Real Estate, High-Rise Apartments

Investing in a property is usually a life-changing decision with a lasting impact on the finances. The complexities of real estate can be overwhelming, causing individuals to overlook certain important details. One such detail or concept is Floor Space Index, which holds immense importance in determining the utilization and density of a plot of land. Floor Space Index emerges as a pivotal parameter, especially when cities continue to evolve and adapt to the demands of a rapidly changing world.

FSI in real estate is an important metric that defines the permissible extent of construction on a plot of land, and it shapes the equilibrium between architectural development and open spaces. In other terms, FSI is the ratio of the total built-up area of a building to the total area of the plot on which the building stands.

Simply speaking, FSI determines how much construction can take place on a specific piece of land.

The FSI rules and regulations in Hyderabad are governed by the Greater Hyderabad Municipal Corporation (GHMC). The maximum FSI for residential buildings is 2.5, whereas for commercial buildings, it can go up to 4. However, it is important to note that FSI will vary based on location, type of building, and plot size.

The Telangana government is continuing to consider FSI and hasn't implemented a cap on it. If this cap is implemented, the land prices in the states, especially in Hyderabad, will come down.

Coming to the city of Hyderabad, the GHMC has formulated various building permission rules for Hyderabad to regulate construction activities in the city. These rules govern the construction of buildings and other structures.

The GHMC charges a specific fee for granting building permission based on the built-up area, type of building, and land use. The permissions granted by the GHMC are valid for a period of five years, and it must be noted that only the GHMC determines the maximum height of a building.