is allowed along the Metro rail line and slum areas like Dharavi. In Bangalore, 40 feet streets allow only an FAR of 1.75 but 100 feet streets allow 3.25 FAR. Impact on land value FAR has a major impact on the value of the land. Higher allowable FAR yields higher land value. A 2022 study found that lower maximum-allowed FAR in New York City led to lower land value and lower density. Criticism Andres Duany et al. (2000) note: Abdicating to floor area ratios (market forces) is the opposite of aiming a community toward something more than the sum of its parts. FAR, a poor predictor of physical form, should not be used when the objective is to conserve and enhance neighborhood character; whereas traditional design standards (height, lot coverage and setbacks or build-to lines) enable anyone to make reasonably accurate predictions, recognize violations, and feel secure in their investment decisions. If FAR is carelessly combined with traditional setbacks, assembled lots have a considerable advantage over individual lots, which has a negative effect on fine-grained cities and the diversity of ownership. Clarifying Duany's second criticism in reference to "lot coverage": If localities seek to regulate density through floor area ratio, the logical consequence is to encourage expansive one story building with less green space, as single story construction is less expensive than multi-story construction on a per square foot basis. On the other hand, if density is regulated by building coverage ratio (a.k.a. lot coverage or site coverage) then green space can be preserved and multi-story construction becomes financial advantageous. This outcome is demonstrated in the illustration comparing FAR to BCR. Footnotes References Meriam, Dwight (2004). The Complete Guide to Zoning. McGraw-Hill. Birch, Eugenie L. (2009). "The Urban and Regional Planning Reader". Routledge. External links An explanation of the floor area ratio by J.H. Crawford Complete information on FSI or floor area ratio by Civil Site Urban studies and planning terminology Real property law Engineering ratios de:Maß der baulichen Nutzung#Geschossflächenzahl (GFZ)