When discussing land costs, terms like Guntas or acres are often used, which can create confusion when comparing profitability across parcels. This guide explains how to convert land cost into a standardised cost per square foot of buildable area.
FSI (Floor Space Index)
FSI determines how much you can build on a given plot — the ratio of total constructed area to land area. A plot with FSI 2.0 and 1,000 sqft of land allows 2,000 sqft of construction. Additional allowances like TDR and premium FSI can raise this further.
Example: Congested Area
Base FSI 2.0, plus TDR and premium FSI loading of 0.3 each, plus ancillary FSI of 0.6, gives a total FSI of 4.12 — though the actual usable multiplier is often 3.6–4.0 after height and margin restrictions. At ₹60 lakh per Gunta (₹6,000/sqft of open land), applying a 3.6 multiplier brings the effective cost to about ₹1,667 per sqft of constructed area.
Example: Non-Congested Area
Base FSI 1.1, plus TDR/premium loading of 0.5 and 0.4, plus ancillary premium of 0.6, gives a final FSI of 3.2, though the consumable FSI may be capped around 3.0. At the same ₹60 lakh per Gunta, this translates to roughly ₹2,000 per sqft — higher than the congested-area scenario.
Always normalise land cost to price-per-sqft of buildable area for a fair, apples-to-apples comparison across parcels.