Valuing land
Build ratio: how many metres does the plot actually give you?
Two plots of the same size at the same price can give you completely different projects. The difference is the build ratio.
The build ratio is the share of the plot you may build on at each floor. On a 1,000 m² plot at 50%, the building footprint is 500 m² per floor. That number alone is not enough — it has to come with the permitted number of floors.
The basic sum
Total built-up area = plot area × build ratio × number of floors (including the ground floor). So 1,000 m² × 50% × (ground + 3) = 500 × 4 = 2,000 m² of building.
Now compare. A 1,000 m² plot at EGP 40M with 50% and ground+3 gives you 2,000 m² of building — EGP 20,000 per built metre. A second plot the same size at EGP 35M but 30% and ground+1 gives you only 600 m² — EGP 58,000 per built metre. The "cheaper" plot is far more expensive.
What eats into that number
- Setbacks — required distances from neighbours and the street — can cut the actual footprint below the paper ratio.
- Common areas: stairs, lifts, light wells and the core. Net lettable or sellable area is usually 15% to 25% below built-up area depending on the design.
- The basement is sometimes counted in built-up area and sometimes not. Ask specifically.
- Height limits: some districts cap height in metres rather than in floor count.
Permitted use matters more than the ratio
A plot with a generous build ratio but an administrative-only designation is no use if the scheme in your head is retail or F&B. Permitted use is fixed in the allocation or in the district conditions, and changing it is neither easy nor guaranteed. Read the conditions before you model any return.
Common questions
- Can the build ratio change?
- It is set in the district conditions or in the allocation, and changing it requires a formal process with no guarantee. Do not buy a plot on the hope that the ratio will be amended in your favour.
- Do I model return on built area or on land?
- On the sellable or lettable built area — net of common areas. That is the number that actually produces income.
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