Extracting built-up areas from remote sensing data like Landsat 8 satellite is a challenge. We have investigated it by proposing a new index referred as built-up land features extraction index (BLFEI). The BLFEI index takes advantage of its simplicity and good separability between the four major component of urban system, namely built-up, barren, vegetation and water. The histogram overlap method and the spectral discrimination index (SDI) are used to study separability. BLFEI index uses the two bands of infrared shortwaves, the red and green bands of the visible spectrum. OLI imagery of Algiers, Algeria, was used to extract built-up areas through BLFEI and some new previously developed built-up indices used for comparison. The water areas are masked out leading to Otsu’s thresholding algorithm to automatically find the optimal value for extracting built-up land from waterless regions. BLFEI, the new index improved the separability by 25% and the accuracy by 5%.