How often do we hear people complain about too much traffic and not enough parking? Parking is a scarce resource and, like any other resource, is subject to the laws of supply and demand. With growing affordability, number of cars are multiplying year every. This increase in car numbers is creating a scarce for parking space in most of the metro cities.
While purchasing a house in group housing societies, you shall be offered a mandatory car parking. Minimum of one car parking is mandatory and depending upon the apartment size, number of default car parking shall go up. It is mandatory for the home buyers to pay for default number of car parking(s) at the time of booking the apartment.
What happens when you have more cars than the default car parking space allotted to you?
In group housing societies, it is mandatory for the developer to construct One parking space per 80 square meters of permissible FAR area. Sounds complicated? Ok, In simple words it is approx 1.4 parking slots per apartment i.e If there are 1000 apartments in your society, builder should construct approx 1400 parking. Keeping demand and supply factors in mind, most of the good developers construct approx 1.7 car parking per apartment. This number shall vary from builder to builder and exact parking provision can be checked in building plans or deed of declaration.
Why should you buy additional car parking
With limited number of parking slot, there shall be scarcity of free space when building is fully occupied. It has been observed that with time, the rent as well as the cost of car parking goes up. Something that is affordable today may not be tomorrow. Experts says, if the additional car parking is being offered at reasonable rates and buyers can afford it, they should purchase it. It is easy to rent out an apartment with more car parking slots and generally fetches more rent. You can easily offset the cost from the rental income.
How to avail additional car parking
So, apart from default car parking, builder may give you an option to purchase additional car parking. Additional car parking is differently priced and may or may not be offered at the same price as default car parking. Following is the rate chart by one of the Noida’s builder.
When should you buy additional car parking
It is advised to purchase additional car parking at the time of booking only. At this time you shall have the option to negotiate the parking rates with the developer. For the fear of loosing the sale opportunity, builder shall offer you a good deal.
However, not all developers offer additional car parking at the time of booking. This is the greedy class who exploit the home buyers. They understand that people need additional car parking and they see this as an opportunity to make money. Instead of offering additional parking at booking stage, you shall be offered additional parking at the time of possession. Additional parking is offered at twice the rate of original parking. In the price list displayed above, the cost of a Normal car parking at the time of booking was only 200000/-. However, at the time of possession same is being offered at the rate of 400000 and above.
Lotus Panache Welfare Association has challenged this monopoly of asking higher rates for additional car parking and is sub-judice. We shall update you when the judgement is out.
Why can’t I just rent a parking
People who buy additional car parking and don’t use it immediately often put it on rent. This rent varies from 1000 to 7000 rupees per month based on the occupancy rate and society. However, one must factor in mind that car parking is totally a demand and supply resource. It may be available on rent today but you may find it difficult to rent once more residents move in. You shall have to pay more for the same parking and it may not be economical for you.
Can I purchase or sell car parking in future
Here is the catch. In group housing projects, you do not own the car slots but you are given the right to use. Once it is attached to your name by the developer, you shall not be able to sell the car parking separately. It is attached to your apartment for lifetime and ownership of all parking slots is transferred when apartment is transferred to someone else. However, you can rent it to someone else.
Any other way out?
Well, there are uncivilized ways of savings money. Park your car outside or in someone else car slot. People have been parking there cars outside society which blocks the roads and creates traffic mayhem. In some societies, residents collectively hire a security guard to watch out for the cars parked on road. Parking on road is anyhow unlawful and comes with its own flavors. There are good chances of carjacking or someone damaging the car itself. There are daily scuffles and people have killed each other in Delhi for fight over parking spaces.
That’s all for lazy readers. Want to read more? you are welcome….. 🙂
Things to keep in mind while purchasing additional car parking
Once again, customer is the king and developer would go to any extent when you show him the moolah. While deciding additional car parking, keep following things in mind.
- Select additional car parking adjacent to default parking.
- If you have been allotted default car parking in Lower Basement, bargain with builder and you may get your default as well as additional parking on upper basement only.
- Don’t just believe drawings and do a site visit. Verify if the allocated car parking is not the not so favorable one.
- Check the legality of open car parking. Car slots that are initially marked as guest parking (mandated as per law) are often being sold to residents. Such sell – purchase are illegal and buyers must validate the documents such as building plans.
The Logical Buyer suggest that if you have the requirement and can afford to buy additional car parking and you should do it before it’s very late.
Note: There is no clarity if charging for car parking is illegal or not. Our lawyers are working on this and shall do a story soon. Please let us know if you have concrete information about car parking being illegal. We are already aware of SC judgement in Nahalchand Laloochand Pvt. Ltd. v. Panchali Co-operative Housing Society Ltd.