What is floor area ratio in SAP RE - Real Estate Management?

SAP Term: floor area ratio

• Component: RE

• Component Name: Real Estate Management

• Description: The arithmetic relationship of the total square feet of a building to the square footage of the land it is built on. In some countries this number is set in the development plan. &EXAMPLE& The area of land is 4000 square feet. The floor area ratio allowed by law is 0.4. The floors of the building cannot exceed an area of 1600 square feet.

Smart SAP Assistant

• Key Concepts: 
  Floor area ratio (FAR) is a term used in real estate management to measure the ratio of a building's total floor area to the size of the land on which it is built. It is calculated by dividing the total floor area of a building by the total area of the land on which it is built. FAR is used to regulate the size and density of buildings in certain areas. 
  
  How to use it: 
  In SAP Real Estate Management, FAR is used to calculate the maximum allowable floor area for a given plot of land. This calculation is based on local zoning regulations and other factors such as building height, setbacks, and lot coverage. The FAR calculation can be used to determine the maximum allowable floor area for a given plot of land, as well as to compare different properties in terms of their potential development potential. 
  
  Tips & Tricks: 
  When calculating FAR, it is important to consider local zoning regulations and other factors such as building height, setbacks, and lot coverage. Additionally, it is important to consider any applicable incentives or restrictions that may affect the FAR calculation. 
  
  Related Information: 
  For more information on FAR and its use in SAP Real Estate Management, please refer to SAP Help Portal or contact your local SAP representative.