How to make more money in Real Estate

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Preferred Location Charges
Finance Monday, 7th November 2016   Editor: Ayush Rajput

PLC or Preferred location charge is the type of charge the builder takes from a customer by booking him a unit with better location within a particular layout or complex. So, in order to get an apartment with a view of a park, lake, etc., the customer needs to pay higher cost. Customer 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 per sq. ft.

Since, there is no law for PLC, builders charge PLC according to the project, and therefore  rate may vary from builder to builder, usually luxury projects tend to have higher PLC Penthouses built on top of buildings generally charge very high PLCs. Even villas and large independent houses charge high PLCs.

Now, PLC can be divided into two type

1) Floor PLC-

Floor PLC is the type of PLC in which the PLC is charged according to floor, usually goes up once you cross the third floor. Higher floors have a higher floor rise charge. This may usually vary from 3-4.5 per cent of the total apartment cost. Customer also needs to understand that floor PLC 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.

2) View PLC -

View PLC as the name suggests is the PLC charged on the view from the unit for Eg, Park view or sea view etc , the builder will charge more according to the view, this varies from city to city. For instance, 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.



In Conclusion,

       1) PLC is the type of charge that a builder takes according to the to preferred type of view.

       2) Different Builders charge different PLC, as there is no law for it

       3) PLC can be of two type Floor PLC and View PLC