plc for buying an apartment

What You Must Know About PLC while Buying an Apartment

When you are scouting for your dream home, you would often be confronted with various real estate jargon. Of late, one such term, doing the rounds in the real estate domain, is Preferential Location Charges, commonly known as PLC. The term, which was popular in celebrity locales until now, is increasingly making its way into the general residential property segment. In fact, PLC has almost become a norm while buying an apartment. This article will take you through various aspects of PLC and things you should know about it.

So What Exactly is PLC?

Preferential Location Charges, as the name suggests, is an additional charge that you as a home buyer pay for a better location or a preferred floor within the same apartment complex. This makes your apartment costlier than other apartments in a building, for being the much-sought-after south-facing plot, or for integrating premium features like a park, pool, or lake view.

How is the PLC Calculated?

Basically, PLC varies across different projects and developers. There are no standard rules or any regulatory framework that govern the PLC. To calculate the extra amount you are paying for PLC, multiply the rate specified in the developer’s PLC chart with the super area of your apartment. Therefore, bigger the apartment, higher the PLC.

Simply put, PLC = PLC Rate X Super Area of Your Apartment.

PLC Determining Factors

In modern complexes, each floor has different PLC rates, but usually, apartments that offer a better view or positioned in the corner plot have higher PLCs. The other factors that decide the PLC are size, alignment, and accessories. A flat near the top of a residential tower or one with an open terrace will command a high Preferential Location Charges because of the exclusivity attached to the unit. Likewise, an independent villa with a personal swimming pool or a jacuzzi and parking space will also have a super-charged PLC.

Furthermore, the climate and topography of a region can play a vital role in determining the PLC. In Mumbai, for instance, high-rise apartments have higher PLCs because of the region’s humid climate. So here, the practice of ground floor commanding the highest PLC is not applicable. On the contrary, in Delhi, and in the northern parts of India, villas, and low-rise apartments have a higher Preferential Location Charges due to the dry North Indian climate. This is because the higher floors become relatively hot during the summer months.

The ‘PLC for All’ Trend

Today, Preferential Location Charges is not just restricted to the floors. Advanced planning and designing mechanisms are making way for the ‘PLC for All’ trend. This means many projects, these days, are being developed in such a way that every apartment has some unique feature or the other, in terms of corner spots, two-side open units, or strategic positions, facing a park, road, lake, or a pool. In a way, this is a win-win for most buyers as they won’t miss out on a preferential flat and will enjoy some of the other premium features.

PLC is Not Standardized

As of now, there are no fixed regulations or guidelines that govern PLC. So preferential location charges will vary from developer to developer depending on the project features, budget, and location.

How Can You Secure the Best Position While Saving Money?

While every developer and project have a different PLC, you can balance the PLC by investing in a project that is just launched or at its early stages of construction. Generally, a project which is just launched or at the early stage of construction comes at the most competitive price.

Bottom Line

Ultimately, aesthetics play a major role in the home buying decision-making process. So, paying preferential location charges while purchasing a property, will eventually, mean that you’re getting a property with desirable features that will eventually fetch you a higher price in the resale market. This is also because a high PLC apartment often offers a better quality of life — for instance, south facing flats are airier; corner flats allow more natural light and more views; similarly, top floors offer the best views and are less prone to pollution. So, even from the investment perspective, a flat with a higher Preferential Location Charges can be a lucrative deal.

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One thought on “What You Must Know About PLC while Buying an Apartment

  1. Thanks for sharing the whole information about PLC for choosing a better apartment. I really appreciated your way of describing and enlightening the whole stuff in an attractive way.

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