What is Floor Rise Charge (FRC) & How to Calculate It?

 

Buying a home comes with many costs, especially when you are purchasing a high-rise apartment. One aspect of the pricing involved in the agreement value is the floor rise charges. Floor rise cost comes under PLC which stands for Preferential Location Charges and it majorly affects all real estate purchases in India. It is a charge that is not governed by any regulations and so they vary from city to city.

Here is a guide to explain the basics of floor rise costs and how they can affect your purchase.

What exactly is floor rise charges (FCR)? — Definition

Floor rise quotations are charges determined by the construction company in respect of an apartment located on floors above the fourth floor in their building. It is calculated on the basis of the cost of construction, interest during construction and overheads. These charges are calculated per sq. meter/per sq. ft. as per the total area of your desired apartment. Based on the particulars of location, the charges can range from Rs.25 per sq. ft. to Rs.100 per sq. ft. Some companies also charge you a higher price for a higher floor.

Calculating Apartment Floor Rise Charges (FCR)

The most common method of calculating this cost includes charging a particular price per floor or charging X% per cent of the entire project cost.

Let’s look at an example to understand how it works.

Imagine you have booked a property with a carpet area of 500sq.ft. If the rate of the area is Rs.2000 per sq.ft., the basic price will be calculated as Rs.10,00,000. In addition to this cost, you will be bound to cover the GST, PLC and stamp duty. If floor rise charges are applicable to your project, say it is at Rs.50 per floor, and your apartment is on the 10th floor, the final price will increase by Rs.500 making Rs.2500 per sq. ft.

This means, that your base price + floor rise charges = Rs.2500 x 500 sq.ft. = Rs.12,50,000 (excluding other charges)

Make sure you speak with your realtor to take you through the price breakdown so that you are fully aware of all the additional costs involved prior to making a purchase.

Happy Dream Home Shopping!

Shapoorji Pallonji Real Estate is a name to reckon with in the real estate sector. It is part of the Shapoorji Pallonji Group — an enormous multi-business conglomerate. The group has a 150-year legacy of creating great spaces, from the earliest structures of India to modern marvels.

Originally published at http://realestateandepc.wordpress.com on May 25, 2022.