Floor rise charges are an extra per-square-foot amount for flats on higher floors, usually added for each floor above a set level. Preferential location charges (PLC) are a premium for a better position, such as a corner, park-facing or pool-facing unit. Neither has a fixed regulated rate; both vary by developer and are often negotiable.

Updated 10 October 2026. This applies to Bengaluru, Gurugram and Chennai alike, because the charges are set by developers rather than by any state rule.

What are floor rise charges?

Higher floors usually get more light, air and privacy, and developers price that in. Provident Housing describes floor rise as an additional cost for a unit on a higher floor, and notes that many developers raise the rate for units beyond the fourth floor. It is typically quoted as a rupee amount per sq ft per floor, so the charge grows with both the height and the size of the flat.

Some developers show floor rise as a separate line on the cost sheet; others build it into a floor-wise price list. Either is acceptable as long as you can see it and it is in the agreement. Choosing a floor in the first place: High Floor vs Low Floor: Which Apartment to Choose

What are preferential location charges (PLC)?

Sobha describes PLC as a fee to buy a unit that is better located than others in the project: corner units, penthouses, higher floors with better views, and homes overlooking parks, pools or roads. Developers usually quote PLC per sq ft of super built-up area, though some quote a percentage of the base price. Sobha's own guide puts typical PLC at ₹100 to ₹500 per sq ft depending on the developer and project, and both Sobha and Provident note there are no standard guidelines, so the amounts vary widely.

How are floor rise and PLC calculated? A worked example

An illustrative example, not any project's actual rates: a 1,500 sq ft flat on the 15th floor, with floor rise of ₹50 per sq ft per floor charged from the 5th floor upwards, and a ₹200 per sq ft PLC for park-facing.

  • Chargeable floors: 5th to 15th, which is 11 floors.
  • Floor rise: 11 × ₹50 = ₹550 per sq ft; × 1,500 sq ft = ₹8.25 lakh.
  • PLC: ₹200 × 1,500 sq ft = ₹3 lakh.
  • Extras before tax: ₹11.25 lakh. At 5% GST for an under-construction home, add ₹56,250.
  • Read the sheet closely: whether the count starts at the ground floor or the 5th, and whether the area is carpet or super built-up, can change the total by lakhs.

How does GST apply to PLC and floor rise?

Since 1 April 2019, under-construction residential homes carry GST of 5% without input tax credit, or 1% for affordable housing, and a completed home sold after its completion certificate carries no GST. On PLC, the GST Council considered the question at its 54th meeting on 9 September 2024, and the government issued a clarification dated 11 October 2024: PLC paid before the completion certificate is part of a composite supply with the construction service, so it attracts the same GST rate as the flat, not a separate higher rate. A Punjab and Haryana High Court judgment of 13 May 2026 applied the same reading.

The clarification speaks of preferential location charges. Floor rise is commonly treated as a form of PLC, but check that the cost sheet applies the same GST rate to it as to the flat. More on GST: GST on Under-Construction Property in 2026, Explained

What does RERA require on the price?

  • Under Section 13 of the Real Estate (Regulation and Development) Act, 2016, a promoter cannot take more than 10% of the cost of the apartment as an advance or application fee without first entering into a registered written agreement for sale.
  • The model agreement for sale used under state RERA rules asks for a break-up of the total price, listing items such as the cost of the apartment, exclusive balcony or terrace areas, the proportionate cost of common areas, preferential location charges, taxes and maintenance charges, as applicable.
  • In practice: if a charge is not in the agreement's price, question it before signing. Clauses to read: The Builder-Buyer Agreement: Clauses You Must Check

How to negotiate floor rise and PLC

  • Ask for the full cost sheet for two or three units on different floors and facings, so the extras are visible side by side.
  • Ask whether the developer will waive or cap floor rise. Both Sobha and Provident describe these charges as negotiable, and launch-stage buyers often have more room.
  • Weigh what you are paying for. A park view that a future tower could block is worth less than one protected by the approved layout; ask to see the sanctioned plan.
  • Compare the all-in price per sq ft, not the base rate. Two flats with the same base rate can differ by lakhs once extras are added.
  • Remember the knock-on costs: extras raise the agreement value, and with it the stamp duty and registration in most cases. City rates: Bangalore stamp duty calculator, Gurgaon stamp duty calculator and Chennai stamp duty calculator
  • More tactics: How to Negotiate the Price of a Home in India and the full list of extras in The Hidden Costs of Buying a Home in India