Preferential Location Charges

Q: There are multiple costs one needs to pay while buying his dream home. Besides other costs, some builders also take an additional charge called the preferential location charge (PLC). Can anybody explain this term?

Kishore Pathak, Mumbai

18th August 2015

Buying property in Mumbai

preferential location charges

plc

factors determinig plc

what is plc?

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Replies (3)

@Rajesh,
Can a builder charge for the Vastu Complaint Homes? Is it too vary from city to city? Kindly reply?????

Nikhil Kanetkar, Pune

18th August 2015

Comment

Yes...... builders may also charge a premium for vastu compliant homes. But this varies from city to city. For example, in Chennai, south facing apartment is considered auspicious and may command a premium. While in Bangalore, east or north facing is considered more auspicious and hence, may command a premium.

Krupa Vasavaraj, Bangalore

18th August 2015

Hello Mani,
One can calculate the PLC amount by multiplying the super built-up area of the apartment with the rate specified in the developer's rate card. PLC usually varies from Rs 40-150/sq-ft.

Yes, each floor may also have a PLC which is popularly known as the floor rise premium. It usually goes up once you cross the 3rd floor. Higher floors have a higher floor rise charge. This may usually vary from 3-4.5% of the total apartment cost. One also needs to understand that floor premium in NCR is higher for lower floor apartments due to excessive heat. On the contrary, in cities like Mumbai and Bangalore, the floor rise premium is more as one goes higher up.

Rajesh, Delhi-NCR

18th August 2015

Comment

Thanks Rajesh.......
Which are the factors that determining PLC? Which are the projects that have higher PLC and which have lowe?

Manilal Patel, Mumbai

18th August 2015

Ur Welcome,
There are no standard rules or guidelines that govern PLC. Each developer and project has a different PLC amount and most of the luxury apartments located in a posh location have higher PLC based on each unit. Apart from the luxury projects, penthouses which are built on top of a tower or an independent villa with a wide road in front or garden facing, or corner plot etc. may also have a PLC but lower than luxury projects.

Rajesh, Delhi-NCR

18th August 2015

PLC is a premium cost which a home buyer pays while preferring to book a unit with a better location situated in the same apartment complex. An apartment facing a sea, swimming pool, lake or a park, or Vastu compliant home will be charged a PLC at per sq-ft. rate.

Gauri Shinde, Pune

18th August 2015

Comment

Thanks Gauri,
Are you a real estate agent or a home buyer? I think you can give me the exact idea of its calculation. Is it the same charges which we paid for the high rise?

Manilal Patel, Mumbai

18th August 2015

Hi Mani,
Each developer and project has a different PLC amount and most of the luxury apartments located in a posh location have higher PLC based on each unit. Apart from the luxury projects, penthouses which are built on top of a tower or an independent villa with a wide road in front or garden facing, or corner plot etc. may also have a PLC but lower than luxury projects.

Hope, the next time you plan to check out an apartment, make sure that you look at the premium charges specified by the developer in the project cost sheet.

Hemant, Noida

19th August 2015