What Are Hidden Costs When Buying Prestige Property?

Published On: 15 September 2026

The hidden costs when buying Prestige property are the extra fees left off the base price tag that add 18% to 25% to your total bill. These extra costs cover government taxes like 5% GST and stamp duty, power and water hookups, parking slots, and advance maintenance fees.

Prestige Group shares clear cost sheets under real estate rules, but first-time buyers still get surprised by the final figure. A home with an advertised price of ₹1.75 Crore will actually cost you around ₹2.10 Crore by the time you collect your keys.

Government Taxes: GST, Stamp Duty, and Registration Charges

Government taxes add roughly 11% to 14% to your base agreement value and must be paid before you take legal ownership.

Goods and Services Tax (GST): You pay a flat 5% GST on under-construction homes. If you buy a ready-to-move flat that already has an Occupancy Certificate, you pay 0% GST.
Stamp Duty: In places like Bengaluru, state stamp duty costs between 5% and 5.6% of your total property value.
Registration Fees: The local sub-registrar office charges 1% of the property value to register your sale deed, plus small local cess charges.
TDS on Property: By law, buyers must deduct 1% TDS on any home priced above ₹50 Lakh and send it directly to the tax department before paying the builder.

Extra Floor and View Fees: Floor Rise and Preferred Location Charges

Floor Rise Charges push up the base price by ₹30 to ₹80 per sq. ft. for every floor above the second or third floor. If you pick a flat on the 14th floor of a 16-storey tower, you might pay an extra ₹800 or more per sq. ft. just for being higher up. On top of that, units that face internal gardens, clubhouses, or swimming pools have a Preferred Location Charge of ₹150 to ₹450 per sq. ft. Corner flats and East-facing layouts also cost more because more buyers want them.

Power, Water, and Backup Generator Fees

Setting up basic utility lines costs an extra ₹350 to ₹700 per sq. ft. across luxury apartment complexes. Builders collect these one-time fees to bring electricity lines from boards like BESCOM and drinking water pipes from BWSSB into the project. Luxury projects also include heavy-duty diesel generators to give you round-the-clock power backup during blackouts, which adds a fixed fee of ₹1.5 Lakh to ₹3.5 Lakh. Piped cooking gas connections add another ₹25,000 to ₹45,000 to the bill.

Car Parking and Clubhouse Access Fees

Car parking spaces are not free with your flat and cost between ₹3.5 Lakh and ₹8 Lakh for each basement slot. If your family has two cars and needs a second covered slot, your parking cost can reach ₹7 Lakh to ₹12 Lakh. The builder also charges a one-time clubhouse fee of ₹2.5 Lakh to ₹5.5 Lakh. This payment gives your family lifetime access to the shared gym, swimming pool, badminton courts, and party halls.

Real Example: Cost Breakdown for Prestige Avon on Thanisandra Main Road

Prestige Avon is a modern 3-acre project on Thanisandra Main Road in North Bengaluru, offering more than 250 flats across 3 high-rise towers of G+16 floors. The project features 2 and 3 BHK layouts known as Optima, Premia, and Ultima, with flat sizes ranging from 1,300 sq. ft. to 2,000 sq. ft.

Base rates sit between ₹12,100 and ₹13,900 per sq. ft., which puts a 2 BHK Optima (1,300 sq. ft.) at a starting base price of around ₹1.73 Crore. Here is how the extra costs add up for that flat:

Cost Item	Typical Rate	Estimated Amount for 1,300 Sq. Ft. Unit
Base Flat Price	Base rate near ₹13,307 per sq. ft.	₹1,73,00,000
GST (5%)	Under-construction tax	₹8,65,000
Stamp Duty & Registration (6.6%)	State government fees	₹11,41,800
Covered Parking (1 Car Slot)	Fixed basement bay	₹4,50,000
Clubhouse Fee	One-time amenity access	₹3,50,000
Water & Power Connections	Utility deposits and generator backup	₹5,85,000
Advance Maintenance & Sinking Fund	Upkeep deposit for 2 years	₹2,35,000
Total Out-of-Pocket Cost	About 21% over the base price	₹2,09,26,800

If you pick a 3 BHK Ultima flat (2,000 sq. ft.) starting at ₹2.78 Crore on a top floor, the extra floor charges and view fees will add several more lakhs before taxes. Keeping these numbers in mind helps you plan your home budget on Thanisandra Main Road without running into surprises.

Advance Maintenance, Sinking Funds, and Khata Transfer Fees

Builders collect 12 to 24 months of society maintenance upfront at a rate of ₹4 to ₹6.50 per sq. ft. each month before handing you the keys. For an average flat, this advance upkeep fee requires a single payment of ₹1.5 Lakh to ₹2.5 Lakh. You will also pay into a sinking fund at ₹60 to ₹100 per sq. ft., which is a reserve pool meant for future building repairs and elevator fixes. Lastly, local municipal paperwork and A-Khata transfer fees add another ₹25,000 to ₹50,000 in administrative charges.

FAQs

1. What are the highest hidden costs when buying a Prestige home?

The highest extra costs are government stamp duty and GST, which together take up over 11% of the property value, followed by parking space fees and utility connection deposits.

2. Can I skip paying the 5% GST?

You can skip paying GST only if you buy a ready-to-move-in flat that already has an official Occupancy Certificate. All under-construction flats come with a mandatory 5% GST.

3. Will a bank home loan cover all these extra charges?

Most banks only lend money for 75% to 80% of the flat's basic agreement value. You must pay for stamp duty, registration fees, clubhouse access, and advance maintenance using your own savings.

4. What is the sinking fund used for?

The sinking fund is a backup savings account for the whole community. It sits in a bank account until the residents set up their own welfare association, and it pays for major building repairs years down the line.

5. Why do flats on higher floors cost more?

Flats on higher floors offer better sunlight, cleaner air, and less road noise. Builders add a small fee per square foot for every floor you go up to match buyer demand for those views.