Cryptic crossword clue
Extravagance: there’s sudden increase around place

The most common and most likely answer to this crossword clue is the 7 letter word SPLURGE

I've seen this crossword clue in Independent
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The straight part
We know that "Extravagance" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case extravagance = splurge.
The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.
This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.

What does SPLURGE mean?

SPLURGE noun
  1. An extravagant or ostentatious display.
  2. An extravagant indulgence; a spending spree.
SPLURGE verb
  1. To (cause to) gush; to flow or move in a rush.
  2. To spend lavishly or extravagantly, especially money.
  3. To produce an extravagant or ostentatious display.

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