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Extra costs imposed on the participants of the market of newly built houses
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The regulation of the National Settlement and Construction Requirements has been amended, which states how many parking spaces per apartment the investor is obligated to build in the case of a newly built residential park. On the developer side, an additional cost factor is the number of parking spaces; meanwhile, the news is not very good for the buyer either, as the more expensive construction is reflected in the real estate prices, regardless of whether someone buys a parking space or not.
According to the government decree: “For the proper use of each plot and building on the plot …. unless otherwise provided, the number of cars determined in accordance with Annex 4 shall be provided by placing four or more dwellings or holiday homes on a building site. 1.5 passenger cars per unit shall be provided.”
As the Hungarian news portal Portfolio reports, market participants have different interpretations and information regarding the issue, and it is not clear what rights, loopholes, or obligations the regulation may impose on local governments, or even on developments.
Read also: Here are the largest real estate developments in Budapest for 2021 – VIDEOS+PHOTOS
The previous regulation stated that a parking space for one car per apartment had to be built after every new apartment, which now has been amended to 1.5 parking spaces from the beginning of 2021.
One would think that at least there will be no shortage of parking spaces in the vicinity of a residential park, but the situation is not so simple. The design of a parking lot, broken down per cars, is such an expense to the developer that there would be no homeowner who would buy them at that price. The developer will thus have to sell the mandatory built-in parking lots at a price lower than the construction cost, but even so, many will give it up and prefer to look for a parking space on the street.
In many cities in Europe new developments are required to scale back parking if they are near transport hubs so as to actively discourage car use. Hungary is behind the curve with this new regulation.