A short note on PLC - Preferential location charges

PLC - Preferential location charges

PLC or Preferential Location charge is the extra charge paid to book a unit which has a better location within a particular layout or complex. Builders charge extra amount for units that are better located than others within the same building or society complex. A better location can mean preference of floor or the view from the front of the house. Owing to a huge demand from buyers, apartments till the tenth floor in a 20-floor building, for example, attract high PLC. Similarly, a park facing unit commands extra charges owing to the better view it offers.

For a property which is corner plot facing the park, the PLC can be attributed in two ways: one for the floor chosen and the other charge for park facing. The corner plot can be accountable for the third possible PLC to be levied from you. The luxury factor is also a key element in determining PLC’s of a project.

However, rather than concerned about the PLC factor, home buyers should focus on the location and surrounding views of a project while buying your home. As an investor, your prime focus is undoubtedly the resale value of the project. In this regard, your interests while home buying should be primarily concerned about the location of the residential project, rather than the location of your apartment.

How to calculate PLC ?

PLC is charged per sq ft. of the total area. In order to calculate PLC, multiply the super area of the apartment with the rate specified in the developer’s rate card. This means that as the apartment size increases, the PLC multiplies too.

What are the Factors of PLC?

• The choice of floor is the main factor that decides the amount of PLC. Each floor has a specific PLC that is applicable on all units located on that particular floor.
• PLC also depends upon a region’s climate and topography. In places such as Mumbai, buyers prefer higher floor units owing to the humid climate. In Delhi and north India, on the other hand, floors closer to the ground are more in demand. The primary reason for the choice of lower floors is easy accessibility and non-dependence on a lift, especially during a power failure. Also, due to higher seismic activity, Delhi is more prone to earthquakes. Lower floors are comparatively easier to evacuate in such circumstances.
• At times, units located in the middle floors do not attract PLC. These are referred to as non-PLC flats and are ideal for buyers on a tight budget. For example, in a particular project, PLC is applicable for floors 0 to 5 and then from 9 to 15. Floors in the middle – 6, 7 and 8 – have no extra costs.
• Of late, a few developers have launched high-rise projects where the uppermost floors have the highest PLC. This is due to additional offerings for top floor units such as outside sitting area and terrace. Some projects feature luxurious penthouses at the topmost floor that are equipped with world class amenities.