When buying a home in India, you’re not just paying for square footage, you’re paying for where that square footage sits. This is where Preferential Location Charges (PLC) come into play. While PLCs are a common and legally accepted part of real estate pricing, many buyers overlook their long-term implications on cost, value, and resale potential.

Let’s break down what PLC means in today’s property market, and how you should approach it as a buyer in 2025.

What Is a Preferential Location Charge (PLC)?

PLC is an additional fee charged by developers for units that offer a more desirable location within a project. These preferences don’t add to the size of the unit, but they enhance its appeal, comfort, or resale potential.

Common location-based advantages that attract PLCs include:

Park or garden-facing views
Corner flats with better ventilation and privacy
Proximity to clubhouses, swimming pools, or main entrances
Lower or top floors (depending on buyer demand)
East-facing units (often preferred for Vaastu compliance)

The idea is simple: if a home offers a better view, layout position, or access within the project, developers apply a premium, just as airlines charge extra for window seats or early boarding.

How Is PLC Calculated?

PLCs are generally charged per square foot, over and above the base price of the unit. They can vary widely, typically ranging from ₹50 to ₹500 per sq. ft., depending on:

The city and project location
Type of locational advantage
Brand and positioning of the builder

Example:

If you’re buying a 1,200 sq. ft. apartment with a PLC of ₹200/sq. For a park-facing view, you’ll pay ₹2.4 lakh extra on top of the unit’s base cost.

In some cases, developers apply multiple PLC layers, for instance, combining charges for both a corner unit and a pool-facing view. This can significantly affect the final price, so clarity in billing is essential.

Is PLC Legally Allowed?

Yes, under the Real Estate (Regulation and Development) Act (RERA), developers are allowed to levy PLCs as long as:

The charges are disclosed in the agreement and cost sheet
They are uniform across similar units in the same category
There is transparency in how and why the charge is applied

Importantly, any change in PLC after booking or charging PLCs without mentioning them upfront would violate RERA norms and can be legally challenged.

Is Paying PLC Worth It?

It depends. PLCs can be worth the premium if they offer genuine, livable value or strategic resale potential. Here are some key questions to ask yourself:

Does this location improve your daily living experience, natural light, noise reduction, and privacy?
Will the unit command a higher resale or rental value due to its location?
Are similar PLCs being charged in comparable projects nearby?
Is the PLC justified, or does it seem like an arbitrary markup?

For example, a corner unit in a dense township may offer better airflow and fewer shared walls, making it a worthwhile investment. On the other hand, paying extra for a garden view in a project where the “garden” is a 20×20 ft patch of grass may not justify the price.

Smart Tips Before Paying PLC

Always request a unit-wise pricing sheet that details all applicable PCs

Ask for a site plan to understand how much of a locational edge you’re getting
Compare PLCs across projects in the area to gauge fairness
Negotiate, especially if multiple preferences are being bundled into one charge
Don’t assume PLC equals quality, evaluate whether it truly enhances your experience

In a maturing real estate market like India’s, Preferential Location Charges aren’t inherently bad, they simply reflect how developers price premium within a project. What matters is how they’re communicated and whether the value justifies the cost.

For buyers, PLCs should be approached the same way as any financial decision in real estate: with questions, comparison, and clarity.

Because in Indian housing, location might command a premium, but it’s transparency that protects your investment.