29 Aug 2025

What is PLC in Real Estate and How Does It Impact Property Prices?

What is PLC? - How PLC Impacts Your Property Price?

The price marketed by a real estate developer is often not the final price of a property. There are few additional costs associated with it, one of which is PLC. The full form of PLC in real estate is Preferred Location Charges or Preferential Location Charges. What is PLC? Why is it important that you know about PLC and how it impacts your property price? Which factors cause application of PLC on property price? In this blog, we will get to know everything there is about PLC and how to calculate PLC on the price of your preferred property. Let’s begin.

What is PLC or Preferred Location Charges?

PLC is an extra fee charged by builders for flats or apartments that are considered to be in a better location within the project, such as park-facing, corner units, or higher floors.

Why Builders Charge PLC in Real Estate?

Not all units in a complex are equal. Some offer better views, ventilation, accessibility, or exclusivity, and developers use PLC to price them differently. For instance, units facing gardens, roads, or having Vastu‑compliance may come with added PLC cost in apartments. Developers often balance overall affordability by keeping the Basic Sale Price (BSP) competitive for regular units and adding PLC in property price to reflect premium preferences.

How PLC Charges Are Calculated?

The PLC charges calculation is typically straightforward:

PLC = PLC rate per sq.ft. x super built–up area of unit

For example, if your apartment has a super built‑up area of 1,500 sq ft and the PLC is Rs.400 per sq ft, you’ll pay Rs.6 lakh over and above the BSP.

Rates vary widely, somewhere between Rs.50 to Rs.500 per sq.ft. depending on factors like location, view, and builder’s policies.

PLC charges examples:

A corner unit facing a park might include two PLCs (floor + view), or multiple, but often the developer charges the highest one only.
In some cities, even “plain” units get PLC because every unit has at least one preferential attribute.

Understanding Different Types of PLC

Let’s break down the different types of PLC that you might come across:

Floor‑wise PLC (Floor rise charges vs PLC)

Higher floors often command a premium due to better views and privacy. In cities like Mumbai, these “floor rise charges” apply. Conversely, in some locations, ground‑floor units may attract more PLC due to different climate or layout preferences.

PLC Charges for Better Location in Apartments

Apartments with garden, sea, or cityscape views attract view PLC adding to the original cost of the property.

Amenities‑based PLC

Units near the clubhouse, pool, or gym may attract extra costs for convenience and accessibility.

Orientation/Corner PLC

Corner units or Vastu-compliant flats are considered more desirable and may have higher charges.

Location Advantage: The proximity of a project to social amenities such as workspaces, shopping malls, hospitals, schools, and others can also attract PLC.

PLC vs BSP (Basic Sale Price) in Real Estate

When buying a flat or apartment, two major pricing components you’ll come across are PLC and BSP. Understanding the difference between these can help you better assess the total cost of your property

BSP – Basic Sale Price

BSP (Basic Sale Price) is the base rate per square foot that a builder charges for the property. This rate is generally advertised and forms the foundation of your property cost calculation. However, BSP doesn’t include additional charges like PLC, floor rise, parking, clubhouse fees, or maintenance deposits.

Example: If BSP is Rs.5,000 per sq. ft. and the flat is 1,200 sq. ft., the base price is Rs.60 lakhs.

Note: BSP is usually applicable to the super built-up area of the flat.

PLC – Preferential Location Charges

PLC (Preferential Location Charges) is an additional cost charged over and above the BSP for units in more desirable locations within the project. This could be:

Park-facing flats
Corner apartments
Units near amenities (clubhouse, swimming pool)
Higher or lower floors (depending on city preference)

Example: If the PLC is Rs.200 per sq. ft. for a park-facing unit of 1,200 sq. ft., the extra cost is Rs.2.4 lakhs, making the total property cost Rs.62.4 lakhs.

Conclusion

Understanding the PLC in real estate is essential for anyone planning to invest in a residential property. While the Basic Sale Price (BSP) gives you the base cost of a unit, PLC refers to the extra amount you pay for units with a superior location, such as park-facing, corner flats, or those on higher floors. These charges can significantly increase your total property cost, so being aware of them helps you make smarter financial decisions.

Whether you’re buying your first home or investing in an under-construction project, always ask for a full cost breakdown, including PLC charges in real estate. This ensures transparency and helps you compare offers across different builders. Remember, while a premium location adds value, it’s crucial to evaluate whether the extra cost aligns with your needs and budget. An informed buyer is always in a better position to negotiate and choose wisely.

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