Mumbai
You have found the perfect flat, the price is within budget, and you are ready to sign. Then the final payment schedule arrives — and it is 20–30% higher than the advertised price. Welcome to the hidden costs of buying a flat in India.
This guide exposes every hidden and often-overlooked cost involved in purchasing a flat, so you can budget accurately and avoid unpleasant surprises.
When a builder advertises a flat at ₹80 lakh, that is the Base Sale Price (BSP) — usually charged per sq. ft. on the super built-up area. The actual all-in cost is typically 25–40% higher, including all charges, taxes, and registration fees.
|
Cost Component |
Typical Range |
Nature |
|
Base Sale Price |
Advertised price |
Mandatory |
|
Preferential Location Charges (PLC) |
₹200–800/sq. ft. |
Often mandatory |
|
Floor Rise Charges |
₹50–300/sq. ft./floor |
Mandatory (above ground floor) |
|
Car Parking |
₹3–10 lakh per slot |
Mandatory in most projects |
|
Club Membership |
₹1–5 lakh |
Mandatory |
|
Maintenance Deposit |
₹50K–3 lakh |
Mandatory |
|
GST |
5% (under construction) |
Mandatory (government tax) |
|
Stamp Duty |
3–7% of property value |
Mandatory (government tax) |
|
Registration Charges |
0.5–1% of property value |
Mandatory (government tax) |
|
Home Loan Processing Fee |
0.25–1% of the loan amount |
If taking a loan |
|
Legal/Advocate Fee |
₹10,000–50,000 |
Advisable |
|
Brokerage |
1–2% of property value |
If using a broker |
|
Interior/Renovation |
₹500–2,000/sq. ft. |
Post-possession |
|
Society Formation/Transfer Fee |
₹10,000–1 lakh |
Post-possession |
PLC is charged for apartments with premium attributes — park-facing, corner units, higher floors, pool-facing, or road-facing. In premium projects, PLC can add ₹5–25 lakh to the base price.
Tip: Negotiate a PLC waiver or opt for a non-PLC unit — internal-facing or north-facing units are identically constructed but significantly cheaper.
Builders charge an escalating premium for each floor above ground level. A flat on the 20th floor may cost ₹8–15 lakh more than an identical flat on the 5th floor in the same tower.
Tip: Floors 4–8 in most buildings offer the best value — above the flood-concern level and below significant floor-raise charges.
GST applies at 5% of the property value for affordable housing (under ₹45 lakh, carpet area under 60/90 sq. mt.) and 5% for other under-construction flats (without ITC). Ready-to-move flats with OC are exempt from GST.
|
GST is applicable on the full consideration (base price + all charges like PLC, parking, etc.) — not just the base sale price. On a ₹1 crore flat, GST alone is ₹5 lakh. |
Stamp duty and registration are mandatory government charges paid at the time of sale deed registration. Rates vary significantly by state:
|
State |
Stamp Duty |
Registration Charge |
|
Maharashtra |
5% (men), 4% (women) |
1% |
|
Delhi |
6% (men), 4% (women) |
1% |
|
Karnataka |
5% |
1% |
|
Tamil Nadu |
7% |
1% |
|
Uttar Pradesh |
7% (men), 6% (women) |
1% |
|
Telangana |
4% |
0.5% |
|
Gujarat |
4.9% |
1% |
|
Rajasthan |
5% (men), 4% (women) |
1% |
On a ₹1 crore property in Maharashtra: Stamp Duty (5%) = ₹5 lakh + Registration (1%) = ₹1 lakh = ₹6 lakh total.
Car parking is now legally mandatory in most cities, yet builders often separate it from the base price to keep the advertised number low. Covered parking can cost ₹3–10 lakh in metro cities — and is non-negotiable if the building bylaws mandate it.
This is a one-time upfront payment to the builder before possession, ostensibly for a future maintenance corpus. It typically ranges from ₹50,000 to ₹3 lakh. Post-handover to the RWA/society, monthly maintenance begins separately.
|
Cost Head |
Amount |
|
Base Sale Price |
₹80,00,000 |
|
PLC (park facing, ₹300/sq. ft.) |
₹3,60,000 |
|
Floor Rise (10th floor) |
₹2,40,000 |
|
Car Parking (1 covered) |
₹5,00,000 |
|
Club Membership |
₹2,00,000 |
|
Maintenance Deposit |
₹1,00,000 |
|
GST @ 5% |
₹4,72,000 |
|
Stamp Duty @ 5% (Maharashtra) |
₹4,23,600 |
|
Registration @ 1% |
₹84,720 |
|
Home Loan Processing Fee |
₹45,000 |
|
Legal/Advocate Fee |
₹25,000 |
|
Total All-In Cost |
₹1,04,50,320 |
|
Premium over Base Price |
+30.6% |
|
Always ask the builder for the ‘Total Cost Sheet’ upfront — before signing any agreement. A legitimate developer will provide a complete breakup of all charges in writing. |
|
SquareYards provides transparent, all-inclusive cost breakdowns for every listed property. No hidden surprises — browse listings at SquareYards.com. |
Key hidden costs include PLC, floor rise charges, parking, club membership, maintenance deposit, GST (for under-construction), stamp duty, registration charges, and home loan processing fees. Together, these can add 25–40% to the base price.
No. Ready-to-move flats that have received an Occupancy Certificate (OC) are exempt from GST. This makes ready-to-move-in inventory more cost-effective from a tax perspective compared to under-construction flats.
PLC stands for Preferential Location Charges — a premium charged for apartments with desirable attributes such as park-facing, corner units, pool-facing, or higher floors. It is in addition to the base sale price.
In projects where municipal bylaws mandate parking, it cannot be avoided. However, in projects with surplus parking, you may negotiate the parking slot as a freebie — especially in a buyer’s market.
A maintenance deposit (or corpus fund) is a one-time upfront payment to the builder before possession, intended to fund the initial maintenance of common areas. It is separate from the monthly maintenance charged post-possession.
Stamp duty rates vary by state, ranging from 4% to 7% of the property value. Check current rates on your state’s IGR or stamp duty portal, as states periodically revise rates.
