Parking spaces are rising in price faster than flats: what developers are saying
Ukrainian property developers have reported this to the Interfax-Ukraine news agency.
“As of today, the cost per square metre of parking space varies significantly depending on the type – underground or above-ground – but usually amounts to approximately 90–120% of the cost per square metre of small flats in the same development. In terms of trends, prices for parking spaces have risen faster than those for housing in certain periods over recent years,” Oleksiy Koval, project manager at Perfect Group, told the agency.
According to him, the sharp rise in prices for parking spaces is driven by a shortage of supply and limited opportunities for building underground car parks in densely built-up urban areas. As noted by the press office of Greenville, the shortage of parking spaces in Kyiv stands at 40–60%. Furthermore, prices for parking spaces rise as construction nears completion.
“Prices vary across different projects because many factors influence them. The cost trend in recent years has been positive – prices are only going up. This is also due to the chronic shortage of parking spaces in the capital. It is estimated to be between 40% and 60%,” explained the developer.
Since the start of the full-scale invasion in 2022, the availability of underground parking has become one of the key criteria when choosing a residential complex, according to Olena Ryzhova, Commercial Director of the development company Intergal-Bud.
According to Alliance Novobud, the price per square metre of housing in the company’s projects is around 47,000 UAH/sq m in the comfort class, whilst the price of a parking space ranges from 52,000 UAH/sq m depending on the complex’s class, location and type of car park.
“In recent years, the cost of parking spaces has shown steady growth. This is linked both to the general rise in construction costs and to a change in buyers’ perception of parking,” noted the developer.
In addition to the increase in the overall cost of construction, the price of parking spaces has also been influenced by increased demand for them due to their additional security function, explained the press service of “Kovalska Real Estate”.
“The cost of parking spaces depends on many factors: the type of car park, the number of spaces, the area and layout of the spaces, the location, the level (above-ground or underground), ease of access, the availability of charging infrastructure for electric vehicles, and so on – from $1,400 per square metre. The trend in car park prices over recent years shows steady growth. By way of comparison, the cost of housing in our projects starts at approximately $1,500 per square metre, and commercial premises at $1,800 per square metre,” the company said.
According to data from the construction company Stikon, in Odessa’s comfort-class housing market, prices range from $850–1,100 per square metre for residential space, $1,300–2,000 per square metre for commercial premises, $700–1,500 per square metre for surface car parks, and for underground parking – $700–1,700 per square metre. The price of parking spaces is influenced by the configuration and layout features of the specific parking bay.
According to Oleksiy Kryuchkov, Head of Engineering at Stikon, demand for parking spaces currently far outstrips supply. He explained that during the first phase of construction, prices for parking spaces often do not have time to rise, as the market quickly absorbs new supply. Consequently, the main upward price trend becomes apparent in subsequent phases.
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