When you buy a new house 15-20% of the overall amount you pay is an extra cost that you hadn’t even thought about particularly if you’re buying a high-rise flat. One of the pricing terms you must have heard in the Real Estate market is Floor Rise charges under the PLC charges which affect total property value. Check out the article to learn about Floor Rise Charges, how to calculate, and how much you need to pay while buying a property.
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What are Floor Rise Charges?
Floor Rise charges are charges set by the Developer or construction organization for a flat/unit in their building that is placed above the fourth floor.
It is determined by considering construction costs, construction-related interest, and administrative costs.
In high-rise buildings, the majority of developers raise the per square footage cost of the apartment as the number of floors grows; as a result, the price for the ground floor will be lower than the price for the fifth floor and above.
The floor rise charges also depend upon the area of the project and the amenities the project’s developer has included.
Without a set regulation, the amount differs across different projects and developers. The price of a floor rise is higher on higher floors.
Also read, All About PLC Preferential Location Charges
How to Calculate Floor Rise Charges?
Money is an important factor involved while booking a new property so it is critical to comprehend exactly where and how much your money is going.
The calculation of floor rise charges depends on construction cost, the location of the project and interest incurred during building and overheads.
The most popular way to calculate the floor rise charge is to charge a specific amount per floor or X% of the total project cost.
For Example,
Consider that you have booked an apartment with 500 square feet of carpeting. If the square footage is valued at Rs. 2000 per square foot, the base price is equal to Rs. 10,000.
You will also be required to pay the GST, PLC, and stamp duty extra to this cost.
If your project is subject to floor rise charges, say they are Rs. 50 per floor and your unit are on the 10th story, the ultimate value goes up by Rs. 500, or Rs. 2500 per square foot.
Therefore, the base price + floor rise charge = Rs. 2500 multiplied by 500 square feet, or Rs. 12,50,000. ( other charges excluded )
Why Floor Rise Charges are Applied?
In today’s, many people prefer living on the top floor which is seen as a unique and luxurious way of life.
- The higher floor offers better ventilation, and sunlight and these apartment dwellers have an added advantage over those on lower floors in that they have easier access to terraces.
- Also, it is simpler for harmful components to enter the ground floors, upper floors are also generally safer.
- People prefer a more private lifestyle, and also higher floors are usually noiseless so people prefer living on top floors compared to lower.
For all the above reasons and advantages, floor rise charges are applied by the developers.
Floor Rise Charges in Mumbai
High-rise buildings are growing common in Indian cities. The floor rise charges are set by the developers of a particular project. High-rise buildings in Mumbai even exceed 40 storeys.
The prices might vary from Rs. 25 per square foot to Rs. 100 per square foot depending on the specifics of the locality.
With floor rise charges there are other charges buyers have to pay such as Stamp Duty Registration, Car Parking, GST and more.
Floor Rise Charges in Bangalore
Staying in a tall building can provide amazing skyline views and a peaceful retreat from the noise below.
If considering purchasing a home in Bangalore at a high-rise tower, you must understand the extra cost of an apartment which comes with it.
For a seamless apartment purchase and move-in process, the complete cost of purchasing a flat must be calculated.
When you select a unit with a certain view in mind on the high-rising floor in Bangalore, it may draw the Floor rise charge ranging from 2-10 lakh depending on the type of apartment.
Also, check out
The Complete Guide for First-Time Home Buyers In India
Best Residential Projects In Bangalore 2024
FAQs
| Does the flat price increase with the floor?
Higher-level apartments don’t always cost more. Apartments on upper floors may be worth more or less depending on the project’s location. |
| How is floor rise calculated?
Floor rise can be calculated by, Floor rise cost x Floor number x Saleable area |
| Which floor is best in a high rise?
In a tall building, the top floors are without a doubt the quietest places to reside. There is complete privacy and solitude from the remainder of the residential complex. |
| Is high-rise apartments safe?
A high-rise construction gives you a greater sense of security and protection by upholding the necessary safety regulations, with the right tools and evacuation procedures. |
