What is PLC in Real Estate?

Gurgaon is a city where real estate investment is a daily business, and it encompasses several important factors. In our previous blog, we discussed Property Transfer. Today, we are going to talk about a factor that determines the final cost of your investment. We are talking about Preferential Location Charges (PLC). Why and where it is applicable, and how one can smartly invest, we will talk about it all in this blog.

What is PLC?

PLC refers to the additional charges other than the property base value, to enjoy a better location and view in society, as compared to the other units within the project. Not every unit contains a PLC; only a few that offer a better view and a better location in the condo. In simple terms, if your apartment or plot is located in a more desirable location, then you will pay extra for it. That extra is PLC. Types of apartments that generally include PLC are:

• Park Facing Units: Homes with a direct view of landscaped gardens or parks.

• Corner Units: Apartments or plots with more open space, privacy, or natural light.

• Pool-Facing Units: Properties facing the clubhouse, swimming pool, or other premium amenities.

• High-Floor Units: Flats on higher floors that offer panoramic views or better ventilation.

• Road-Facing Plots: Plots facing wider roads, ensuring better access and visibility.

Why Do Developers Charge PLC

Scarcity Factor – Only a limited number of units enjoy such premium positions.

Added Value – Properties with better views, openness, and convenience often command higher demand.

Market Dynamics – Buyers are willing to pay more for a superior location, and developers monetize this demand.

PLC and Your Investment

While PLC increases the upfront cost, it can be beneficial in the long run. Properties with preferential locations generally:

• Offer better resale value due to higher demand.

• Ensure higher rental returns because tenants often prefer well-placed units.

• Provide lifestyle advantages, such as better views, more privacy, or easier access to amenities.

However, it’s important to analyze whether the PLC being charged is reasonable compared to the actual value addition.

Conclusion

PLC in real estate is essentially the price of preference; you pay extra for a better-located unit within the same project. While it adds to your initial investment, it can also enhance your property’s long-term value and desirability. As a buyer, always weigh the cost against the actual benefits before making your decision.