In India’s rapidly urbanising landscape, whether to pay extra for parking space has become a significant consideration for property buyers and residents. With increasing vehicle ownership and limited urban space, parking has evolved from a mere convenience to a critical necessity. This article delves into the multifaceted aspects of paying extra for parking spaces in India, examining legal frameworks, types of parking, associated costs, and practical considerations to guide potential buyers and residents in making informed decisions.
Understanding parking spaces in India
Types of parking spaces
In residential complexes across India, parking spaces are typically categorised into three main types:
Angle parking
- Vehicles are parked at an angle to the curb, typically 45 or 60 degrees.
- This layout allows for easy entry and exit while maximising space.
- Commonly found in open parking lots where efficient use of space is needed.
Perpendicular parking
- Cars are parked at a 90-degree angle to the curb or parking bay.
- This is one of the most space-efficient layouts in basements, parking garages, and small residential complexes.
- Drivers must ensure their tyres are straight when parking.
Parallel parking
- Vehicles are parked parallel to the curb, with one car in front and another behind.
- This type of parking is ideal for narrow driveways or roadside parking in housing complexes.
- It requires more skill compared to other layouts, as drivers must maneuver between two cars.
Tower parking (Automated parking system)
- A fully automatic, multi-level system where vehicles are lifted and parked in designated slots.
- Ideal for urban high-rise apartments where land is limited.
- Requires a parking lift operator for smooth functioning.
Laws related to parking spaces in india
Under the Real Estate (Regulation and Development) Act (RERA), 2016, closed garage spaces can be legally sold as independent units. However, stilt and open parking spaces are classified as common areas, similar to staircases, lifts, and gardens, and cannot be sold separately. Charging buyers extra for such parking is considered unlawful.
Once a housing society is registered, the municipal corporation grants the Occupation Certificate (OC), and the builder hands over control of all common spaces, including parking, to the society. At this point, parking spaces become the society’s property.
Supreme court ruling on parking sales
In the landmark 2010 Supreme Court case (Nahalchand Laloochand Pvt Ltd vs. Panchali Cooperative Housing Society), the court upheld the Bombay High Court’s decision that builders cannot sell stilt parking as independent units. Initially, developers attempted to sell parking spaces to non-residents, leading to objections from society members. The court ruled in favor of the residents, reinforcing that stilt and open parking belong to the society and must be allocated fairly.
Parking regulations as per model building bye-laws
According to the Ministry of Housing and Urban Affairs’ Model Building Bye-Laws (2016):
- Two Equivalent Car Spaces (ECS) must be provided for every 100 square meters of residential floor space.
- This roughly translates to one parking space per 3 BHK and two spaces per 4 BHK apartment.
- Each state’s development control regulations mandate that builders provide parking to buyers—though specific requirements vary by state.
Apartment acts and society rules on parking
Once the society takes charge, it can regulate parking allocation and fees through General Body discussions. Parking charges vary based on vehicle type and availability. Some state-specific laws, such as the Maharashtra Ownership Flats Act and the Delhi Apartment Ownership Act, allow societies to levy parking fees. Still, they cannot sell parking spaces as private property.
Illegal sale of parking spaces
The Supreme Court reaffirmed in 2010 that developers cannot sell parking spaces separately, including stilt and garage parking. Parking is a common amenity, and once the society is formed, it can allocate spaces fairly.
The Delhi High Court also ruled in January 2016 that each unit is entitled to one parking spot, and parking should be restricted to designated areas only—not in other common areas.
Financial implications of parking spaces
Costs associated with parking spaces
The cost of parking spaces varies based on several factors, including location, type of parking, and developer policies:
- Covered parking charges: Developers may charge substantial amounts, ranging from ₹2 lakh to ₹5 lakh, for covered parking spaces. These charges are sometimes included in the overall property cost or levied separately.
- Maintenance charges: Parking areas contribute to the everyday maintenance expenses of a housing society. Residents may be required to pay additional monthly or annual fees for the upkeep of parking facilities.
Hidden costs and considerations
Beyond the initial purchase price, several hidden costs may be associated with parking spaces:
- Premium location charges (PLC): Parking spaces near elevators or exits may attract additional premiums.
- Floor rise charges: In multi-level parking structures, charges may vary depending on the floor level, with more accessible levels commanding higher prices.
- Additional vehicle charges: Owning multiple vehicles may necessitate the purchase of extra parking spaces, each incurring separate costs.
Practical considerations for buyers
Assessing personal needs
Before deciding to pay extra for a parking space, consider the following:
- Vehicle ownership: Evaluate the number of vehicles you own or plan to own shortly.
- Usage patterns: Consider how frequently you use your vehicle and the convenience a dedicated parking space would offer.
- Family requirements: Account for the driving needs of other family members and potential future drivers.
Evaluating property-specific factors
When assessing a property, take into account:
- Availability of parking: Determine the number of parking spaces available relative to the number of units in the complex.
- Security features: Check for security measures such as surveillance cameras, gated access, and adequate lighting in parking areas.
- Accessibility: Consider the proximity of the parking space to your residence and ease of access.
Legal due diligence
Ensure compliance with legal norms:
- Documentation: Verify that the sale agreement specifies the allocation and ownership of the parking space.
- Builder credibility: Research the developer’s history to ensure adherence to legal provisions regarding parking spaces.
Can a society charge extra for parking?
Housing societies cannot charge extra for a single designated parking space with an apartment, as parking is considered a common facility under housing laws. However, if a resident owns multiple vehicles, the society has the right to levy additional parking fees to ensure fair allocation of limited parking spaces. These charges vary based on society rules, available parking slots, and the type of vehicle. Residents should review their society’s bylaws and ensure any parking charges comply with legal guidelines before making payments.
Housing.com POV
Deciding whether to pay extra for a parking space in India involves carefully evaluating legal guidelines, financial implications, and personal requirements. While having a dedicated parking space offers convenience and security, ensuring that such transactions comply with legal standards and are transparently documented is essential. Prospective buyers and residents should conduct thorough due diligence, consult legal experts if necessary, and make informed decisions that align with their present and future needs.
FAQs
Is it legal for a builder to sell stilt parking separately?
As per the Supreme Court ruling (2010), stilt parking is part of the common area and cannot be sold as an independent unit.
Can open parking spaces be sold by developers?
No, under RERA 2016, open parking is classified as a common area and cannot be separately sold to buyers.
Are closed garage parking spaces legally sellable?
Yes, closed garage spaces can be sold separately as they are considered independent property units under RERA.
Why do parking space prices vary within the same building?
Prices may vary due to Premium Location Charges (PLC) for spots near elevators or exits, as well as floor rise charges in multi-level parking structures.
Can a housing society change parking allocations after purchase?
Society can reallocate parking spaces based on collective decisions or maintenance needs.
Are parking spaces included in property maintenance charges?
Yes, residents often pay additional monthly or annual fees for the upkeep and security of parking facilities.
Can I buy extra parking spaces for multiple vehicles?
It depends on availability and society rules—some allow additional purchases, while others allocate based on need.
What should I check before paying extra for a parking space?
Verify legal compliance in the sale agreement, check security features, and confirm allocation policies with the builder or society.
Do builders charge GST on parking space purchases?
Yes, GST may apply if the parking space is sold separately and not included in the overall property price.
Can parking disputes arise in a housing society?
Yes, common disputes include unauthorised parking, allocation issues, and resale of parking spots without society's approval.
