Thursday, November 02, 2006
I recently overheard a powerful curse of how costly parking is in the center of Helsinki. At its highest normal street parking costs three euros per hour, but evenings, nights and weekends are free. So, should a parking place be in 100% utilization, and should everybody really pay their parking, it would give a revenue of a little above 700 euros per month, or 50 to 60 euros per square meter per month. This sounds high in comparison to the average appartment rents, typically well over 15 euros per square meter per month, in the same area. But appartments are typically stacked six to nine floors on top of each other, so consequently one can gather up to twice the amount in rent than in street parking for each unit of ground area. The cost of heating, maintenance and repairs is perhaps a fifth of the rent. The cost of construction is harder to estimate, but in the long run - we live in an eighty year old building - it too becomes relatively small. So, in summary, renting a parking place doesn't really seem costlier than renting an appartment.