Developers Find a Way Around SC Ruling on Parking Spaces

Published: April 25, 2011
Share

A Supreme Court ruling in 2010 may have prohibited developers from selling parking areas as independent units to flat buyers ‘ but developers seem to have found a way around it.

Developers are now offering car parking charges as part of the sale agreement value . This trend was noticed during the recently concluded property fair organized by the Maharashtra Chamber of Housing Industry wherein marketing representatives of some well-known developers informed visitors of this option . Property experts say that such a method is being adopted to pacify prospective buyers who might be shocked by thehighcar parking charges quoted by developers.

Car parking and other charges put together work out to Rs 5 lakh to Rs 10 lakh on an average . But since it was not partof the agreement value ‘ the high parking charges acted as a deterrent for buyers ‘” said a property analyst.

A well-known developer said ‘ “It was either this (making parking charges a part of the agreement ) or quoting a lump sum rate to the buyer . Moreover ‘ it does not strain our pockets if we then have to give a 5-10 % discount to buyers as we have recovered our costs.” Developers say that it is only logical that since builders incur costs for building stilt’basementor podium parking ‘ they would try to recover the cost.

Furthermore ‘ said a senior MCHI official ‘ the apex court judgment makes it clear that if the promoter discloses common areas in the sale agreement ‘ he will be able to recover the cost of construction of parking ‘whichis included in common areas . “That’s what we are doing ‘” he said.

The apex court had rejected a real estate company’s argument that developers are entitled to sell garages /stilt parking areas as separate flats to buyers.

Currently ‘ parking area in a building is free of floor space index . While stilt parking in Kandivlicould gofor Rs 5-10 lakh ‘ open parking in buildings in Nepean Sea Road go for over Rs 1 crore.

Source: The Economic Times


Posted under categories: News
Tags: ,

About Zamanzar

Zamanzar Advisory Pvt. Ltd. is a real estate advisory firm located in New Delhi, India. We offer online property search tools and offline services to help complete the transaction. Our services cater to real estate buyers, renters, and sellers. Visit Zamanzar to find out more!

Leave a Comment

Name (required)

Email (required)

Website

Comments

More Blog Posts