Why are there not enough parking spaces in residential complexes

Why are there not enough parking spaces in residential complexes

From 2015 to 2019, twice as many RC were launched in Kiev than in the previous 10 years. At the same time, there is an increase in car sales, for example, according to the Khmarochos website, today the capitalization level of the capital is 257 cars per 1000 inhabitants, but already by 2025 it can reach 450 cars. In such circumstances, one of the important criteria when choosing a home is its availability of parking spaces.

“In our study, we correlated the number of apartments in the capital’s new buildings with the amount of parking spaces that the developer provides, and parking spaces and garages that are sold or rented through the OLX platform,” comments DC Evolution, Alexandra Gluzdovska, Head of Data Science.

In total, OLX posted more than 12 thousand ads for the sale of garages and parking spaces throughout Ukraine. Most of the proposals from the Kyiv region – 2 667 lots, while the share of offers in the capital of this volume is more than 90%. In addition, 480 parking spaces are leased throughout Kyiv.

“Today in Kiev, sales of more than 400 LCDs are open or planned, with data on the number of apartments available in just over 300, and on the availability of parking lots in half as many properties. In new buildings, in which both parameters are known, we estimated the dependence of the number of parking spaces on the number of apartments. So, predictably for economy and comfort class this ratio is less than for business and elite class” adds Alexandra Gluzdovska.

The largest ratio of parking spaces to apartments in Podolsky and Pechersky districts, where the parking space is “attached” to almost every apartment in a new building. The lowest ratio is in the Dnieper region. Such results are due to the fact that in the Pechersk district more than 90% of business and premium class apartments, which imply a higher provision with parking lots. While in Dneprovsky comfort-class objects prevail, and, presumably, residents will park on the street or public parking lots. At the same time, Desnyanskiy district has a high indicator, but it is achieved mainly due to parking meters that can be bought or rented at OLX.

On average throughout Kiev, the provision of parking spaces is 0.59, that is, for every two apartments there is one parking space. Again, it is worth emphasizing that these figures reflect the specifics of only those complexes that have parking data – and this is slightly less than 170 LCDs being sold or planned for sale. By the way, in residential complexes of business and elite class, underground parking is mainly built, and in economy and comfort class, ground parking.

“We divided Kiev into sections with radii of 1 km and estimated the number of residential complexes in these locations. So, most of the facilities are being built in the central part of Kiev and in the Goloseevsky district. If you map the density of new buildings on the map of the volume of apartments and parking spaces in the same locations, it is clearly seen that, in terms of the number of apartments, record holders are new buildings remote from the center. At the same time there is not enough parking space there” the analyst notes.

“The problem of insufficient provision of parking spaces has existed, perhaps, since the inception of the Ukrainian development market. The construction of a parking lot is quite an expensive pleasure for both the buyer and the developer. For the first, the return on investment is 12-15 years, for the second – at least 10-15 thousand dollars, depending on the class of the complex, the number of parking levels of other parameters, and in the absence of demand, it is simply money frozen for an indefinite period. At the same time, there is an interesting trend when the price of a parking space is commensurate with the price of the car that parks on it”said Roman Savchenko, General Director of UTG Residence.

Due to the fact that the study does not cover all the complexes of the capital, the provision of parking spaces can actually be even less. “Car sharing is becoming more and more popular, and in Kiev they even built several intercepting parking lots, but our society is still quite car-oriented. Therefore, I estimate the actual coverage of parking spaces not more than 0.35, or even 0.3 parking spaces per apartment. But until the residents are ready to pay for their comfort, the developers will not and will not be able to provide more parking lots, which means we will continue to run in this vicious circle” adds Roman Savchenko.

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