What Is PLC in Real Estate? Meaning, Full Form, Charges & Calculation

Compare two flats in the same apartment project and you may find their prices don’t match, even when the size and layout are almost identical. 

One reason can be PLC, or Preferential Location Charge.

Builders may charge extra for a flat based on where it is located within the project. For example, a flat on a higher floor, one with a better view, a corner unit or one close to certain amenities may come with additional charges. 

But what exactly is PLC? Is it mandatory? How is it calculated? And does paying PLC make a property more expensive than it is worth?

Let's understand.

What Is PLC in Real Estate?

In real estate, PLC (preferred location charge) is an extra amount a developer may charge for a unit in a better spot in the project.

Take two 2 BHK apartments in the same project. Flat A is on a lower floor and faces another building. Flat B is on a higher floor with an open view. Because Flat B’s location is seen as more desirable, the developer may add a charge for it. That extra amount is often called the Preferential Location Charge, or PLC.

PLC is usually separate from the property’s base price, but how it’s shown and calculated differs from one developer to another.

What Does PLC Mean for a Homebuyer?

For a homebuyer, PLC means you may pay more for a particular unit because of where it is located within the project.

The preferred feature could be:

• Higher floor

• Open view

• Park-facing location

• Pool-facing location

• Corner position

• Road-facing position

• Better access to a particular amenity

For example: two apartments might both be 1200 sq ft. 2 BHK units, yet one costs more because of a preferred view or location. That’s why you shouldn’t compare apartments on price per sq. ft. alone. Check whether PLC or any other additional charges have been added to the final price. 

Why Do Developers Charge PLC?

An apartment project can have hundreds of units, but not every unit has the same position.

Some apartments may have features that buyers consider more desirable. A higher floor apartment may offer a better view, while a corner apartment may have more open sides.

Developers may therefore use different pricing for different locations within the project.

For example:

Base price: ₹7,000 per sq. ft.
PLC: ₹200 per sq. ft.

The buyer of a unit that attracts PLC would pay an additional ₹200 per sq. ft. over the applicable base price.

The actual PLC structure depends on the project and developer.

What Are the Common Types of PLC?

PLC is not limited to one type of preferred location. Developers may apply it for different features.

Floor-based PLC

A higher-floor apartment may attract an additional charge because of its floor position.

For example, a developer may charge more for apartments on the 15th floor than for similar apartments on the 5th floor.

However, some developers may treat this separately as a floor-rise charge.

View-based PLC

An apartment with a preferred view may attract PLC.

Examples include:

• Park view

• Pool view

• Lake view

• Open view

• City view

The charge depends on the project.

Corner-unit PLC

A corner apartment can cost more because of its position, layout, views or other features. Whether a corner apartment is actually better value depends on the project and, on what matters to the buyer.

Amenity-facing PLC

An apartment overlooking a landscaped garden, swimming pool or another preferred project feature may have an additional charge.

Not every amenity-facing unit will necessarily attract PLC. The developer decides how the project's pricing is structured.

How Is PLC Calculated?

There is no single method used by every developer.

PLC may be calculated:

• Per sq. ft.

• As a fixed amount

• Based on the floor

• Based on the location of the unit

• Through a combination of different charges

Say you’re buying a 1,000 sq. ft. apartment and the developer charges a PLC of ₹150 per sq. ft. The sum is simple:

1,000 × ₹150 = ₹1,50,000

So, the PLC would add ₹1.5 lakh to the applicable property cost.

This is only an example. The actual calculation should be checked in the developer's cost sheet.

How Does PLC Affect the Total Property Price?

PLC can add a significant amount to the overall cost of your property.

Imagine you are buying a 1,200 sq. ft. apartment.

So, always look at the total cost of the flat rather than just the advertised price.

Is PLC Included in the Property Price?

It depends on how the developer presents the pricing.

Some developers show PLC separately in the cost sheet. Others may quote different prices for units with different locations.

Before booking, ask for a detailed cost sheet and check:

• Base property price

• PLC

• Floor-rise charges

• Parking charges, where applicable

• Taxes

• Registration and stamp duty

• Maintenance or other applicable charges

• Other project-specific charges

This will help you understand what you are actually paying for the property.

Is PLC Mandatory?

PLC is not a charge that applies to every property or every flat.

It depends on how the project's priced and where the unit is located.

For example a developer might have:

• Units without PLC

• Units with a view-based PLC

• Units with a floor-based charge

• Corner units with an additional charge

If you don’t want to pay PLC, ask whether a similar unit is available without the charge. What matters is whether the extra cost is worth it for the particular unit you’re considering. 

Is PLC Negotiable?

PLC may or may not be negotiable.

This depends on the developer, project, unit and current sales terms.

You can ask the developer:

• Is the PLC fixed?

• Can the PLC be reduced?

• Is the builder offering any discounts or waivers on PLC charges?

• Are similar units available without PLC?

• Can another part of the property cost be negotiated?

Even if the developer does not lower the price of the PLC there might be business terms that can be talked about.

Make sure to have any agreed changes written down.

PLC vs Floor-Rise Charges: Are They the Same?

Not necessarily.

Both charges can increase the price of a property because of its location within a building, but they can have different purposes.

A project can have both charges.

For example, a higher-floor corner apartment may attract a floor-rise charge as well as a PLC.

This is another reason to check the complete cost sheet before booking.

Does PLC Affect Home Loan and EMI?

PLC can affect your financing requirement because it increases the amount payable for the property.

For example:

Property price without PLC: ₹80 lakh
PLC: ₹3 lakh
Property cost before other applicable charges: ₹83 lakh

If you need a larger loan to cover the additional cost, your loan requirement may increase.

This can affect your:

• Down payment

• Loan amount

• EMI

• Total interest payable

Your home loan may not cover the PLC amount.

This depends on the bank's rules, the value of the property, your loan eligibility and the loan terms.

Before deciding on your budget, ask your bank if PLC will be covered under the loan or if you'll have to pay for it yourself.

Is Paying PLC Worth It?

There is no one answer for every buyer.

The real question is:

Is the location worth the extra money you are paying ?

For example you might like a floor because of the view, privacy or more natural light.

If the price increases by several lakh rupees and that feature does not really matter to you then another unit might give you better value.

Before paying PLC, compare:

Extra Cost vs. Actual Benefit

Is the premium worth paying ? Consider whether the extra cost is worth paying for the location or features you're getting in return..

What Should You Check Before Paying PLC?

Before paying PLC, ask the builder to explain exactly what you're being charged for and how much it will add to the property's total cost..

Check why the PLC applies

Find out exactly what makes the unit a preferred location.

Is it because of:

• Floor

• View

• Corner position

• Amenity facing

• Road-facing location

• Another project-specific feature?

Check the calculation

Ask how the PLC amount has been calculated.

If the charge is ₹200 per sq. ft., confirm which area is being used for the calculation.

Compare similar units

Ask about similar apartments in the same project.

A similar unit on another floor or with a different orientation may have a lower PLC.

Check the complete cost sheet

Don't consider PLC separately from the rest of the purchase cost.

Compare the final amount payable for different units.

Check the effect on your loan

If PLC increases the property price, ask your lender how it affects your loan requirement and eligibility.

Get the details in writing

Make sure the PLC amount and the reason for the charge are clearly reflected in the relevant cost sheet or documents.

What does Alldoors suggest?

Don't pay extra just because the builder describes a flat as being in a “premium location.” 

Find out what makes it different from other flats and whether the additional cost is worth it.

Before booking, compare the complete cost of similar units and check:

• Base property price

• PLC

• Floor-rise charges

• Other additional charges

• Taxes

• Registration costs

• Total purchase price

Paying PLC isn't necessarily a bad decision. Make sure you know what the extra charge is for and whether it's worth paying for.