You walk into a builder's sales office. The brochure says ₹85 lakh for a 2BHK. You do the math — 3% down payment, some EMI, manageable. You sign a letter of intent. Then the cost sheet arrives.
By the time you reach the bottom of that document — floor rise, preferential location charge, parking, amenities, society formation, GST, stamp duty, registration — the number is closer to ₹1.1 crore. That's a 30% increase from the headline figure.
This is not unusual. It is standard practice in the Indian real estate market. Here is every charge you need to know about before you enter any negotiation.
The rule of thumb: In major Indian cities, budget 25–35% above the base price to arrive at your actual all-in cost. In Tier 2 cities, 18–25% is typical. Use our calculator to get the exact number for your specific property.
The Core Hidden Costs
Floor Rise Charges
Builders charge more for higher floors, citing better views, air quality, and lower noise. This is typically ₹15–50 per sq ft per floor above a base floor (usually floor 5 or 10). On a 1,000 sq ft flat on the 20th floor at ₹25/sqft/floor, that's ₹5 lakh extra — before anything else.
Preferential Location Charge (PLC)
An additional charge for flats that face a garden, pool, road, or clubhouse — or for corner units. This is often ₹100–500 per sq ft and is layered on top of floor rise. Not all builders separate this out; some bundle it into the rate per sq ft.
Parking Charges
Open parking is typically ₹1–3 lakh. Covered parking (stilt or basement) is ₹3–7 lakh in most cities, and can go up to ₹15 lakh in premium Mumbai developments. Some builders offer the first parking free; second parking is always charged. Under RERA, parking must be sold at declared rates.
Amenity / Club Charges
A one-time charge for access to the clubhouse, pool, gym, and common facilities. This ranges from ₹50,000 in budget projects to ₹5 lakh in premium ones. It is separate from monthly maintenance and is paid only once at the time of booking or possession.
Society Formation / Registration Charges
The cost of registering the housing society or association. Typically ₹25,000–75,000. Some builders charge this upfront; others recover it at the time of society formation. Under RERA, builders must form the association within a specified period after possession.
GST (Under-Construction Properties)
GST is charged at 5% on under-construction residential property (1% for affordable housing under ₹45L). Ready-to-move properties where the Occupancy Certificate (OC) has been received attract zero GST. The 5% applies on base price + floor rise. This alone adds ₹3–5 lakh on a typical ₹60–80L flat.
TDS on Property (above ₹50 Lakh)
If the property value exceeds ₹50 lakh, the buyer must deduct TDS at 1% of the total payment and deposit it with the government via Form 26QB. This is not an additional cost — it is deducted from the seller's payment — but it is a compliance step buyers must handle or face penalties.
Stamp Duty
A state government tax on property transfer. Ranges from 3% (some states for women) to 7% (Karnataka, for example). In Maharashtra, it's 5% for men and 4% for women, plus a 1% metro cess in major cities. Calculated on the agreement value or ready reckoner rate, whichever is higher.
Registration Charges
The fee for registering the sale deed at the Sub-Registrar's office. Usually 1% of the agreement value. Some states cap this — Maharashtra caps it at ₹30,000 for properties above ₹30 lakh. Paid on the day of document registration.
The "Hard Cash" Component
In many resale and builder transactions in India, a portion of the payment is made outside the official agreement — this is the "hard cash" or "black money" component. While this is legally problematic and declining in prevalence post-demonetisation and RERA, it is still a reality in several markets.
The significance for cost calculation is that the agreement value (on which GST and stamp duty are computed) is reduced by the hard cash amount. Our calculator accounts for this accurately.
Costs After Possession
These aren't paid to the builder but are unavoidable after you move in:
- Maintenance deposit: 12–24 months of maintenance upfront, typically ₹30,000–1,50,000
- Electricity connection: ₹10,000–50,000 for a new meter
- Home loan processing fee: 0.5–1% of loan amount
- Interior and fit-out: ₹5–25 lakh for a standard 2BHK, depending on finishes
- Shifting and miscellaneous: ₹50,000–2,00,000
A Real Example: ₹85L Becomes ₹1.12 Crore
| Charge | Amount |
|---|---|
| Base price (1,000 sqft @ ₹8,500/sqft) | ₹85,00,000 |
| Floor rise (₹25/sqft × Floor 12) | ₹3,00,000 |
| Parking (covered) | ₹4,00,000 |
| Amenity charges | ₹2,00,000 |
| Society registration | ₹50,000 |
| GST @ 5% (on ₹88L base+floor rise) | ₹4,40,000 |
| Stamp duty @ 6% (on ₹92L agreement) | ₹5,52,000 |
| Registration @ 1% (capped) | ₹30,000 |
| Total All-In Cost | ₹1,04,72,000 |
That's ₹19.72 lakh — over 23% — above the headline price. And this doesn't include interior work or the maintenance deposit.
How to Protect Yourself
- Always ask for the complete cost sheet before booking, not just the base price
- Verify all charges are mentioned in the RERA registration for the project
- Negotiate parking and PLC — these often have the most flexibility
- Check the GST applicability — if OC is imminent, a ready-to-move unit saves 5%
- Use a calculator (like this one) to verify the builder's numbers independently