Real estate investment guide: Here’s what parking demand reveals about a housing project
Fast-selling or discounted parking bays reveal buyer intent, investor confidence, and future occupancy trends, making parking a key indicator of real estate investment. Real estate experts say the availability and number of parking spaces can heavily influence purchase decisions and, in some cases, even make or break a luxury transaction.
In a recent LinkedIn post, real estate influencer Aishwarya Shri Kapoor highlighted that in real estate, the most underrated signal isn’t pricing or location, it’s parking. At project launches, fast-moving parking bays reveal buyer intent: end-users, renters, or long-term holders. In developing areas, aggressive uptake signals investor confidence, anticipated end-user migration, and potential price growth. In mature areas, discounted or bundled bays may indicate weak end-user demand and an investor-only ecosystem.
“When a project is launched, savvy investors ask: ‘What’s the parking velocity?’” she said. “Parking bay sales reveal how many buyers are end-users, renters, or long-term holders, a shadow indicator of intent.”
She added that in undeveloped areas, aggressive parking uptake usually reflects long-term investor conviction, while discounted or bundled bays can signal weak end-user interest and an investor-dominated market.
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All about parking as an investment, the ‘bedroom minus one’ parking principle
Real estate experts agree that parking has become a key indicator of both investor and end-user demand in any given housing project.
While investors often buy additional parking slots to lease or sell later at a premium, end-users typically seek extra spaces for their own use. For instance, in a ₹35-crore apartment in Mumbai, each parking slot can cost ₹25–30 lakh, and many buyers are willing to invest an additional ₹15 lakh or more to secure extra spaces, either for personal convenience or as a smart investment, explains Ritesh Mehta, Senior Director, and Head (North and West), residential services and developer initiative, JLL India.
In most premium projects, developers follow a ‘bedroom minus one’ parking principle. A 3BHK typically includes two parking slots, while a 4BHK comes with three. In South Mumbai, a single parking slot for projects priced more than ₹10 crore can cost around ₹25 lakh, while in apartments priced between ₹3 crore and ₹10 crore, the rate ranges from ₹7 lakh to ₹10 lakh, he said.
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Availability of parking slots can make or break a luxury home deal
Given the scarcity of parking, particularly in cities like Delhi and Mumbai, the availability and number of parking spaces can heavily influence purchase decisions and, in some cases, even make or break a luxury home deal, experts say.
Ultra-rich buyers are discerning and pay close attention to parking location. Options include surface, automated, or stacked/multi level parking, with most HNIs preferring surface slots. “The availability or lack of parking can be a major deal maker or breaker. Waiting time is also crucial; the driver should reach the drop-off point in seconds, not minutes. Deals have been called off if developers fail to provide the requested number of parking slots,” adds Mehta.
According to real estate brokers, developers do not sell car parking separately; instead, they include the price in the total cost of the flat. As per MahaRERA, open parking areas are provided free of Floor Space Index (FSI), and developers are not entitled to sell/allot open parking areas for monetary consideration. However, in the case of covered parking, developers can charge a consideration amount from homebuyers.
