The Preferential Location Charge, sometimes known as PLC, is becoming a common inclusion in the overall price of a housing unit as part of the rising trend. A potential buyer frequently encounters it as one of the crucial terms relevant in a real estate dictionary. Check out the article to get a deep understanding of the Preferential Location charge and how it affects the home price.
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What is a Preferential Location Charge?
The PLC or Preferential Location Charge is essentially an additional fee that buyers must pay regarding obtaining a unit that has a distinct location benefit over the others.
For example, you must have heard of amenities facing an apartment, pool facing or City facing an apartment.
These influences may affect the pricing of these units, which would raise the cost of the buyer’s home.
How Much Should You Pay as PLC Charges
PLC is one of the known words from the real estate industry. There are no set rules for deciding the PLC charges, thus developers have total discretion in determining Preferential Location Charges that are favourable to them.
According to the developer and the project, these PLC charges are charged to homebuyers ranging from Rs 100-500 per sq ft.
Also, read The Complete Guide for First-Time Homebuyers In India.
How PLC Charges are Decided?
PLC charges are decided based on various factors. Let us discuss them below,
- Selection of Floor: Floor selection is one of the important factors that affect PLC charges. Depending on the project and the city floor rise charges are applied. Higher floor selection maximum PLC. If you prefer a nice city view then go for the higher floor which includes PLC, but if your pockets are tight then choose a midfloor apartment.
- Access to Amenities: The topmost apartments or the penthouses of the building are filled with opulent features including a quiet private patio. In comparison to the other units in the same building, these homes frequently draw a higher PLC.
- Weather Conditions: The weather condition of the city is another factor that decides PLC. For example, in Mumbai or Hyderabad, the weather conditions are mostly humid so people mostly prefer living on the top floor to get ventilation in the apartment.
- Adherence to Vastu Shastra: In today, Vastu compliance homes are one of the important aspects of buying a house for many. Units that adhere to Vastu Shastra’s guidelines are frequently expensive due to the increasing interest in it in the current environment.
Also, read Important things you should know before Buying A New Flat
PLC Charges Calculation
Preferential location charges are paid according to the super-built area of the apartment. Since preferred location Charges vary based on a variety of factors, you can calculate them by multiplying the super area of your apartment by the prices shown on the construction cost sheet provided by the developer.
No set rules are controlling the matter, builders are allowed to choose the PLC, which is primarily intended to maximise sales revenue.
Preferential Location charges are calculated as follows,
What Are The Average PLC Charges in Mumbai
In Mumbai, PLC charges are a common entity while buying a property. Mostly, PLC is applied to Luxurious projects but nowadays it become more common for many developers to charge PLC on their projects to attract buyers.
The PLC may be charged between Rs. 100- 500 per sq ft at the developer’s discretion.
Also Read, Buying a Home In Mumbai? Here Is A Step By Step Guide To Follow in 2024
What are PLC Charges in Bangalore
Even though apartments with alluring views of gardens, the sea, swimming pools, or lakes may sound appealing, these come at a premium known as PLC or the Preferential Locality Charge.
When you select a flat with a certain view or feature in mind, it may draw the PLC, which can range from Rs. 100 to 500 per square foot.
Also, check out Best Residential Projects In Bangalore 2024
How Do PLC Preferential Location Charges Affect Home Prices?
PLCs substantially raise the cost for homebuyers, mainly because the PLC charges are levied according to the super built-up area than the carpet area of the unit.
The Low base costs are used by developers as a hook to draw customers. For instance, if the unit’s base price is Rs 4,000 per square foot, the implementation of PLCs could increase that price to Rs 5,000 per square foot if the facility attracts many PLCs.
Also, check out Top Methods to Find Valuation of Property
FAQs
| What is PLC in the apartment?
The additional charge a buyer needs to pay for a specific apartment with a good location. |
| What is FRC in real estate?
FRC means Floor rise charges which are levied by developers on higher floor units. |
| Is the PLC charge negotiable?
If the buyer invests in the property while the initial phase of construction, the buyer can offset the PLC costs. The developer can offset that cost with the initial discount offered. |
| What are different PLC Charges?
Apartments with a view of the pool, apartments with a view of amenities, corner apartments or apartments with a view of the city are the different types where PLc is applied to the apartment. |
