With the passing of time, the lifestyle of people has also changed. Now almost all families have a minimum of one car at their homes. Residential and commercial investment options have become much more attractive with parking facilities. Most of the real estate projects have incorporated parking facilities in their building plan by utilizing the basement area. However, due to the uncontrollable pace in the rate of vehicles purchased and used, there is also a need for expanding parking facilities as well. Thus there is a need to utilize vertical spaces and develop multi-level car parking facilities. Let’s discuss multi-level parking as an emerging trend further.
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Multi-level parking- an emerging real estate trend
Growing urbanization and the pandemic have created possibilities to improve our cities’ infrastructure. Parking is one such asset class that urban planners and real estate players can both benefit from. Many people may be surprised to learn that car parks generate more than $20 billion in revenue each year, according to the International Parking Institute.
Even though millions of cars are sold each month in India, little attention has been paid to the expanding requirement for parking lots. According to the Centre for Science and Environment (CSE), in India, a car is parked more than it is driven and thus, the need is always increasing, and building multi-level parking spaces to handle increased urbanization can help to make growth more sustainable while also having a multiplier effect on the economy.
Real estate developers can take advantage of this opportunity to build mixed-use complexes in metropolitan cities that provide multiple benefits to all users. The commercial value of these assets can be enhanced many times by allocating space for offices or shops. This opens up a plethora of revenue-generating alternatives for parking garages. Also, India’s metro cities will eventually run out of horizontal development options, necessitating the creation of a multi-level car parking system that can vertically accommodate car parks while allowing land to be used for other purposes (commercial, residential, or retail).
Indian metropolises such as Mumbai, Delhi, and Bengaluru are consistently ranked among the top ten most congested cities in the world. The land is becoming increasingly scarce in Indian metropolises. Car parks can thus be commercialized with suitable urban planning and architecture.
The cost of these facilities is no longer a limitation, and monies from the private sector can be used to construct them in a public-private partnership model. Furthermore, vehicle-free zones are rapidly gaining popularity, with cities all over the world effectively implementing them.
It also has a positive impact on tourism and commercial activity in the region. The vehicle-free zone idea has been effectively implemented in places like Mall Road in Shimla, MG Road in Gangtok, Chandni Chowk, and the Golden Temple region in Amritsar. Nonetheless, the government’s proactive attempts to decongest cities and monetize premium real estate through a public-private partnership model are gaining popularity among consumers, entrepreneurs, and tourists.
The Delhi Master Plan 2041 also emphasizes the need to reorganize parking facilities so that they can be used to their full potential. Multi-level parking garages have lower operating, maintenance, and construction expenses, and they are more environmentally friendly because they provide open spaces for vegetation.
Benefits and limitations of a multi-level car parking system
Multi-level automobile parking not only maximizes available space but also allows residents to access the facilities at any time of day. Because the facility takes up less space, the bulk of open areas in a project can be used for landscaping. Furthermore, it eliminates the risk of parking space disputes among residents.
While such a multi-level facility has been planned for some metro stations and commercial areas, such as Sector 18 Noida, the practicality of such a facility in residential buildings is still being investigated in many regions. Only a few residential projects currently have such a parking facility. In the majority of existing and planned residential complexes, the basement serves as a parking garage. Furthermore, each car’s parking spot is usually assigned in the basement to minimize any disputes among the occupants.
However, with many metropolis homes now owning several cars, the basement may not be able to accommodate the growing number of vehicles. Residents may be required to park their vehicles outside the society’s premises if the basement fills up, which is generally not regarded as a safe choice.
Although a multi-level parking structure can accommodate a big number of vehicles, it also has several disadvantages. Because the interiors of such a facility are dark even during the day, appropriate illumination is required at all times. As a result, there will be a lot of energy used. Furthermore, because it supports such a large number of cars, the structure is prone to deterioration if not properly maintained.
Multi-level parking facilities are currently hot in the real estate asset class now. With the increased number of cars, several experts have opined that vertical car parking facilities are beneficial in terms of both saving space and generating profit. As an investor of such projects, you can earn profits by making the parking system paid. However, you must invest with trustworthy partners to ensure construction works are carried out with good quality. Assetmonk is an online platform offering real estate investment assistance in top Indian cities like Bangalore, Chennai, and Hyderabad. Our properties are categorized as Growth, Growth Plus, and Yield Products.
Multi-level parking- real estate investment FAQ’s:
A multistory car park is a structure constructed for car parking with multiple floors or levels on which parking can be done. It’s essentially a stacked indoor parking garage.
Cars are parked in steel pallets that travel up and down various floors for parking and retrieval in this arrangement. The entire parking mechanism is simplified thanks to a system of pallets, lifts, and signaling systems. Drivers may use mobile apps to connect to their automobiles and see exactly where they are parked.