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Go for taboo parking
In city centers, parking is a sought-after commodity, and in recent years it has become a profitable real estate. Nir Shmol explains why now, more than ever, you should take care of one.
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Parking lot
parking
Nir Shmol, guest column
Sunday, 24 October 2021, 09:12 Updated: 09:26
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The decision of the Economy Committee on the abolition of the maximum tariff for municipalities for parking in blue and white is another in a series of decisions, some of which appear in the forthcoming Arrangements Law, with the aim of encouraging public transportation (metro budget), reducing the number of people entering vehicles Public at the expense of travel routes and more.
The decision will directly and immediately affect the prices of parking in the city centers, which are currently priced in the range of NIS 600,000-150,000 per parking space, depending on the specific location.
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As much as you need it, and not because of the space for the car (Photo: ShutterStock)
As state and local authorities are working to encourage public transport at the expense of private transport, theme park gets a separate reference real estate and sometimes very significantly in front of the house price.
The cost of construction of underground parking is approximately NIS-4000-3000 per square meter and a parking space requires an average of 60 40 sqm for a single parking space (depending on the boundaries of the lot, the geometry of the lot, a ramp, etc.). The cost of the developer for a parking space is between 250-120 thousand shekels per parking space. These parking lots are usually sold for double to triple the price by developers in areas of demand.
The latest decisions join the previous decision of the Tel Aviv Municipality, which is the right-wing marker for the other municipalities.
They usually after a certain period implement the decisions made in Tel Aviv to the other cities.
According to this decision, in the city center there will be a parking standard which is one parking space for every two apartments that will be built.
In this way, the parking spaces for private vehicles in the city center are massively reduced.
An earlier decision has already led to an increase in the price of parking lots and, of course, the rental prices of the parking lots, along with an increase in the cost of parking hours in parking lots in the area.
Parking spaces will be further reduced (Photo: Reuven Castro)
Nir Shmol (Photo: Tomer Feder)
Today, most families in areas of demand have two vehicles, and according to data from the Central Bureau of Statistics, there are currently 3,689,300 million vehicles in Israel (as of the end of 2020), of which 3,173,300 are private. On average, these are 1.3 vehicles per family. This figure indicates the demand and the high need for parking, so we see that parking prices are rising year by year and have now become a rental property next to the apartment.
In recent years we see more and more real estate companies entering transactions in parking lots, The cities. This activity leads to an increase in hourly parking prices in parking lots, along with renting parking lots at an average price of NIS 1,500-1,000 for a single parking space in a central location in the city, compared to prices of NIS 600-500 per month for a parking space 8-5 years ago.
In a boxed article, this is a huge policy change in the face of the authorities' demand in the past for two parking spaces per apartment, a demand that led to an increase in apartment prices, especially in areas of demand in light of the high construction costs of underground parking. This change in reducing the number of parking spaces will, as mentioned, lead to an increase in parking prices, an increase in the rental prices of parking and, of course, an increase in the hourly prices in parking lots.
The main problem is that there is still no metro in Israel, no light rail in the central area that operates, public transport routes are very limited and train and bus traffic is very limited in front of developed countries, so this decision to increase parking rates in blue and white. Mass transportation is available and cheap, joining a chain of mistakes in the real estate market that for over 15 years has led to a constant rise in prices in all regions of the country with an emphasis on areas of demand
.
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