Hidden Costs Of Buying Flat: Those property ads flashing "2 BHK from only Rs 50 lakh" aren't lying, but they're not telling the whole truth either. What you see in the brochure is just the beginning. The moment you express interest, a second figure, significantly higher, quietly enters the conversation.
Ask anyone who's bought a flat recently. The final price is always more than the number on the hoardings. Between developer extras, government taxes, and society-level costs, you're looking at a 15–25 per cent jump over the so-called base price. Here's where that money really goes.
What You Actually Pay For
The number in the ad? That's the Basic Selling Price (BSP). It covers your share of the land and the cost to build the apartment. It doesn't include taxes, registration, or anything "premium", and there's plenty of that coming your way.
Sanjeev Arora, Director at 360 Realtors, while speaking with Outlook Money says, "Properties do have multiple hidden costs such as PLC, HRC, Parking costs, club cost, etc. Few of the charges such as club cost or parking, can't be negotiated. Others, such as PLC or HRC can be negotiated."
Location Adds a Premium
You want a flat with a view? Be ready to pay more. Developers charge a Preferential Location Charge (PLC) if your unit faces a garden, swimming pool, or even gets better sunlight. A flat on a higher floor in Mumbai can cost 20–30 per cent more than one lower down. In cities like Chennai and Delhi, it's the ground floors that often carry the premium.
Arora elaborates, "A Preferential Location Cost (PLC) is generally charged on favourable position such as corner house. It is charged as percentage of per square foot. For instance, if a property is priced at Inr 5000/ Sq. Ft. a PLC of 5% would mean the new price will be Inr 5250 PSF."
The Higher You Go, The More You Pay
In high-rise cities, every floor above a certain level adds to the price. It's called a floor rise charge, and it's standard in most new launches. In Mumbai, it kicks in from the 5th floor and goes up from there.
Arora explains further, "Similarly, there is an additional price for high-rise apartments called HRC or High-Rise Cost pertaining to better views and higher construction costs. It is calculated at an additional fixed price per floor. For instance, if the HRC is INR 100 PSF, then in this case, the 15th-floor apartment will be charged at INR 6500 PSF (5000 is the base price, and 15X100 is the additional one)."
Parking Isn't Free
Forget the days when parking was included. Now it's a separate line item. You'll often pay between Rs 2 lakh and Rs 5 lakh for each slot. The bigger your flat, the more parking you're expected to buy. Want a third slot? That's another cheque.
Clubhouses and Other "Extras"
That clubhouse and gym in the brochure? Not complimentary. There's usually a one-time clubhouse fee, which could be Rs 50,000 or more. Use of other spaces like a mini theatre or a banquet hall is charged per use. Want to host a family event on-site? That could run you Rs 8,000 for a few hours, plus GST.
Maintenance Starts Before You Even Move In
Even before residents take over, developers collect an interest-free maintenance deposit, often a lump sum covering a year or more. Once the Residents' Welfare Association (RWA) is formed, they take over, and monthly maintenance begins. If this crosses Rs 7,500 a month per unit, you also pay 18 per cent GST.
State Charges Are No Joke
Every buyer pays stamp duty and registration fees, which vary by state. Stamp duty is typically 4 per cent to 8 per cent of the property value. Add 1 per cent to 3 per cent more for registration. Women buyers might get small rebates in some states, but the numbers are still hefty.
GST Only If It's Under Construction
If you're buying an under-construction property, get ready for Goods and Services Tax (GST): 5 per cent for homes above Rs 45 lakh and 1 per cent for "affordable" housing. Buying a ready-to-move-in unit? No GST.
Loan? That'll Cost You Too
Banks love paperwork, and they charge for it. Processing fees range from 0.5 per cent to 1 per cent of your loan amount. Some also charge for legal verification or property valuation, and those costs land on your plate.
The Hidden Stuff
Planning to paint or upgrade your kitchen? You'll need another budget. Even minor renovations can run into Rs 50,000 or more. Add utility connection fees, broker commissions (usually 1–2 per cent of the deal value), and possibly transfer fees if it's a resale.
