Challenging the cost of parking

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Challenging the cost of parking
21 January 2022

There were many interesting and unusual forensic examinations in the work of Valrus, but one was remembered for the number of research objects. In the question posed by the court, their number exceeded 250, which led the company's experts to be puzzled.

It turned out that 250 parking spaces, which were part of the office complex, were collected in one class action. The administrative statement of claim with appendices to it amounted to thousands of pages and occupied about 11 volumes of the case. In its composition, the main volume was occupied by extracts from the Unified State Register of Real Estate for each garage box with a technical plan, power of attorney, etc. At the same time, the expert's opinion on the results of the forensic examination amounted to only 60 pages.

The feature of the property was that the garage boxes were not used as a business center parking lot. This parking lot is organized not as a parking space for office tenants, but as separate garage boxes, and was intended for sale and rental to third-party users – residents of surrounding residential buildings.

At the same time, it is incorrect to directly compare parking spaces in such a parking lot with parking lots of residential complexes. The cost of garages in the business center will be significantly lower than the cost of parking spaces directly in the residential complex, and closer in prices to the parking sub-segment in garage construction cooperatives, since these types of parking are not within walking distance for residents - they cannot take an elevator from the garage directly to their floor.

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When selecting analogues, factors that affect the cost of selling parking spaces in the whole market were also taken into account:

·         type of parking: all parking lots are divided into aboveground and underground;

·         type of parking (single space/separate boxes);

·         the availability of heating, security and video monitoring.

When determining the cost of a parking space for the purpose of determining the cadastral value in the amount of the market, as well as for buildings, it is necessary to exclude the cost of land rights from the cost of a single real estate object. Although in this case, land rights are mostly not issued to the owners of parking lots, the plot may be leased from a garage cooperative or a management company, the land nevertheless contributes to the value of the object, and since rent for it (tax or rent) is paid separately, it is necessary to deduct the share of the land plot from a single object (point 2 art . 555 of the Civil Code of the Russian Federation and point 4 of Article 35 of the Land Code of the Russian Federation, paragraph 7).

During the study of the valuation report, mistakes were discovered on the described fundamentals of the methodology for valuing parking spaces and on the selection of analogues, both for the formation of the local market and for calculating the market value of the object of valuation. The expert, in turn, took into consideration all the features of the research object and selected the most comparable objects-analogues, which was eventually reflected by the court in the reasoned part of the decision. As a result, the forensic examination conducted by the Valrus expert became the basis for establishing the cadastral value in the amount of the market value.

This court case was distinguished not only by the number of research objects, but also by the possibility of filing an administrative claim collectively. This option of submission directly or through a management company helps to reduce the cost of the contesting procedure for each owner. At the same time, it ensures good efficiency of such projects for consultants. 


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