Glossary
PLC (Preferential Location Charge)
PLC is an extra charge for a flat in a preferred position, such as a corner, a park view or a higher floor. It is added on top of the base price.
In plain words
Not every flat in a building is equal. Some face a garden, some are on a corner with windows on two sides, some sit higher with better light and less road noise. Builders often charge more for these, and the extra is called a preferential location charge, or PLC. A related charge, floor rise, adds a fixed amount per sq ft for each floor above a certain level.
A worked example (illustrative)
Say the base price is quoted per sq ft and a corner flat carries a PLC of ₹150 per sq ft. On a 1,200 sq ft flat, that adds ₹1,80,000. If floor rise is ₹25 per sq ft per floor from the third floor up, a fifth-floor flat adds 3 × 25 × 1,200 = ₹90,000. Together, ₹2,70,000 is added before GST and registration.
Why it matters to you
PLC and floor rise can quietly turn two similar-looking quotes into very different totals. There is no law that sets them; each builder decides. What matters is that they appear on a written cost sheet, so the total is clear before you book.
- Ask for every charge on paper: base price, PLC, floor rise, parking, GST, deposits.
- Ask what the PLC is for. Is the “park view” a park on the plan, or a vacant plot that may be built on?
- Compare the total, divided by the carpet area, across options.
- Decide if the view or light is worth it to you. Sometimes a flat one floor lower is the better buy.
Read more on the blog
Related terms
See all glossary terms. This page explains a term; it is not legal or tax advice, and rupee figures are illustrative.
FAQ
PLC (Preferential Location Charge): common questions
Is PLC negotiable?
Sometimes. It is set by the builder, not by law. Ask, and get any change written into the cost sheet.
Is floor rise the same as PLC?
They are related. Floor rise is a charge per floor above a set level; PLC usually covers position or view. Both add to the base price.
Does PLC count in the agreement value?
Yes, if it is part of the price you pay for the flat. That means stamp duty and GST may apply to it too. Check the cost sheet.
Can a bank fund the PLC?
If it is part of the flat’s cost in the agreement, banks usually include it in the value they lend against, within the LTV limit.
Want someone to walk you through it?
Ask the Reeva team about this, or anything else on your first-home paperwork. We will call back, with no pressure to buy.