When a person decides on buying a new house, the first thing a person looks for is the location of that property. There are many small terms that come with the word location, such as, park facing or pool facing, road facing or corner facing and so on. The price of a property will vary with each one of them. These charges fall under the heading ‘Preferential location charges’ also called as PLCs. It is the development firm who decides the price of these charges. And there are builders who make such charges an important part of the total property price and value.
The charges can vary, starting from Rs 50 per square feet to almost Rs 500 per square feet. This price depends on the location as well as the preference. As per the proper definition of Preferential Location Charges, it states that a home buyer needs to pay an amount of money for opting for a better location in the concerned complex. So if you want a pool facing view, it is going to cost you a little extra!
These charges vary from state to state, like in Mumbai, buyers are required to pay PCLs in order to stay on the higher floors but in case of Delhi, the builders charge PCLs for choosing the ground floor. These charges are applied to the super built-up area of a house on the basis of per square feet. Every floor in a building has a different PLC.
There is no such framework in our country which governs these charges. Hence the price of these varies from builder to builder and project to project. The projects which are located at a prime and posh location tend to have high PLCs. A person who is purchasing an apartment has to pay the PLC. There is no escape from it!
The builders keep changing the PLCs due to the lack of regulation. This sometimes turns unethical. Like, some developers of luxurious projects have now started charging higher PLCs for even the top floors which were earlier just the ground floor. The price of these charges now depends on the developers and the project.
It is advisable to the home buyers that one should look for a good location not to worry about the PLCs. Also, PLCs are not applied while one is purchasing a home from the secondary market. It is said that buyers should go for the middle floors where the PLCs are sort of balanced.