You’ve probably heard the term “PLC” if you’ve booked an apartment or browsed property brochures. If you were surprised by the final price, it could be because of PLC. It’s important to understand this term before you are blindsided by the final price of your real estate transaction.
You might ask, what is PLC full form in real estate? It stands for preferential location charges. PLC in real estate refers to extra costs developers charge for homes in a better location and a better view within a development.
You may wonder what makes a flat “preferential.” You’re wrong.
What is PLC in real estate?
PLC in real estate is a fee charged by builders for units or apartments located in the most desirable areas of a residential development with the best view. The preferred locations include apartments facing a garden or overlooking a pool or park, positioned in a corner that has better natural lighting, situated on a higher level, closer to the exit or entrance gate, or with superior ventilation. The Preferential location charges can increase the cost of a unit with a superior location.
Why do developers charge PLC?
Developers charge more for land because of supply and demand. The majority of homebuyers prefer to buy units that have better views, more light, or quieter corners. This makes them more desirable. These premium locations are charged more by builders to take advantage of the demand.
From the developer’s point of view, PLC in real estate is a pricing tool that allows them to differentiate their units beyond their size. They can also set prices according to internal demand within a project and maximize the revenue from a small number of high-value units.
PLC Charges: Common Types
Not all PLCs have the same features. They are usually classified by developers based on the type of PLC they prefer. Here’s a quick breakdown:
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Park Facing PLC
Apartments with a view of a park or garden are often more expensive.
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Corner Flat PLC
Expect to pay more for corner flats because they are usually larger and better ventilated.
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Floor Rise PLC
Developers often charge more for higher floors in high-rise buildings.
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Clubhouse/Pool-Facing / Sea Facing PLC
Who wouldn’t like to have a view of a pool, or be close to the clubhouse, or get the seamless view of the sea?
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Road-Facing PLC
Even though they are not always the preferred option, some units facing the road still have to be charged based on the width and importance of the road.
How much can a PLC cost?
PLC rates are based on city, builder, and project size. To give you an idea:
- For units facing the garden, prices range from Rs50 to Rs150 per sq. For units with a garden view, the price ranges from Rs50 to Rs150 per sq.
- For corner flats, the price ranges from Rs 100 to Rs 300 per sq. ft.
- For floor rise PLC, Rs25-Rs75 a sq. For a floor rise PLC, the price ranges from Rs25 to Rs755 per sq.
Many builders also implement what is called a floor-rise PLC. This means that higher floors are charged a premium. The price ranges between Rs25 and Rs75 per sq. foot, depending on how high the building is and what views it offers.
How is PLC calculated?
PLC is charged based on the area that has been super-built up in your apartment. Here is a formula you should keep in mind.
PLC = Super Built-Up Area x PLC Rate
If your apartment is 1,200 sq. If your flat is 1,200 sq. ft..,
PLC = 1200 x 75 = Rs 90,000.
Why Understanding PLC is Important in Real Estate
Understanding PLC in real estate is important because it affects your final home price. This charge is often overlooked by buyers, who then face unexpected budget costs. PLC may add thousands, or even lakhs, depending on location and apartment size. Knowing what to expect will help you plan more accurately.
You can also compare properties smartly and negotiate better. If you ask the right questions, builders will often waive PLC for early bookings. Avoid paying for benefits you don’t want. PLC awareness gives you control and clarity.
How to minimize the cost impact
These strategies may help you to get the best location while staying within your budget:
- Early booking offers are often PLC-free.
- Resale is another option. In resale, the PLC has already been absorbed in the price, and you can sometimes get a fantastic location without any additional “preferential” label.
- Real estate agents are often able to help you find deals that require little or no PLC.
Legal Aspect—Is PLC Regulated in India?
In India, PLC in real estate is legal, but it has to be disclosed transparently. All charges, including PLCs, must be listed in the cost sheet under RERA. The builders are required to state the amount and the reason for the charge. Unfair trade practices include hidden or surprise PLCs.
The buyer should always verify the builder’s RERA registration, as well as the breakdown of fees. You can file a complaint if a PLC is unjustified or not stated upfront. There are legal protections, but it is important to be aware of them. Before signing, always read the contract carefully.
Final Thoughts: Be an Intelligent Buyer
PLC in real estate is one of the charges that can make a huge difference. It’s not a legal or standard practice. You, as a buyer, deserve to know exactly what you are paying for.
Ask yourself if you can afford the price. Is it a good fit for your lifestyle or just a marketing pitch? You’re now in a better position to negotiate and make decisions confidently, as you are aware of the PLC full form in real estate and its impact. You’re on the right track. A buyer who is well-informed will always be a smart one.
FAQs about PLC in Real Estate
Q1. Is PLC legal in India?
A – Yes, it’s permitted. The builder has to disclose this in the price.
Q2. Is PLC applicable to commercial properties too?
A – Yes, offices or shops that have better visibility and front access can also attract PLCs.
Q3. Is the PLC refundable?
A – No. This is a non-refundable, one-time charge that you pay at the time of booking.
