Neighborhood garages

Neighborhood garages are collective parking facilities-typically underground garages or multi-story parking structures-located at a central point within a residential neighborhood to meet the parking needs of multiple properties or residential buildings. Instead of providing every new building with its own, often space-intensive individual parking spaces, the parking spaces are concentrated in one location, which relieves pressure on street space, open areas, and the ground-floor facades of residential buildings. Neighborhood garages are a tool of modern urban planning designed to enhance the cityscape and create more sustainable residential neighborhoods.

Planning Law Basics

Parking space requirements for new buildings are regulated in most federal states by state building codes and municipal parking space ordinances. Municipalities can stipulate in the zoning plan or by ordinance that parking spaces can be demonstrated in a neighborhood garage-thus replacing the obligation to provide them on the building lot with a buyout payment or a share in the neighborhood garage. In Bavaria, Art. 47 of the Bavarian Building Code (BayBO) allows the parking space requirement to be fulfilled by making a payment into a municipal parking space fund, which can be used to finance neighborhood garages, among other things.

Benefits for the Residential Neighborhood and Residents

Neighborhood garages enable low-traffic or car-free residential neighborhoods where streets and open spaces are not dominated by parked vehicles. For residents, they often mean a short walk to the vehicle, covered and secure parking, and frequently an integrated charging infrastructure for electric vehicles. For cities and urban planners, they are a tool for unlocking the potential of open spaces, creating green areas, and making new residential neighborhoods more attractive and sustainable.

Economic Viability and Financing

The construction and operation of neighborhood garages are economically challenging: underground parking spaces cost between 25,000 and 50,000 euros per space to build, while multi-story parking garages cost slightly less. Ongoing operating costs and refinancing require either cost-covering parking space rents or cross-subsidies. Municipalities and municipal housing associations often act as operators; sometimes neighborhood garages are organized as a PPP (Public-Private Partnership) model.

Neighborhood Garages and Electric Mobility

Modern neighborhood garages are increasingly equipped with charging infrastructure for electric vehicles. Since 2021, the Building Electric Mobility Infrastructure Act (GEIG) has required new buildings and substantially renovated buildings with more than ten parking spaces to be equipped with wiring infrastructure and-under certain conditions-with charging points. For neighborhood garages, this means that anyone building or modernizing today must factor in charging infrastructure. While this increases investment costs, it makes the garage more future-proof and attractive to users.

Neighborhood Garages and Mobility Concepts

Modern neighborhood garage concepts go beyond simply parking cars. They are often planned as part of an integrated mobility hub that brings various modes of transportation under one roof: secure bicycle parking and cargo bike rental stations, car-sharing vehicles, e-bike charging stations, and package lockers for last-mile delivery. Such mobility hubs reduce dependence on private cars without sacrificing individual mobility. This approach is attractive to neighborhood developers because it is eligible for funding and simultaneously increases the marketability of the residential neighborhood among a younger, mobility-conscious target group.

Practical Tip for Property Owners in Nuremberg and Franconia

In Nuremberg, neighborhood garages have been discussed and, in some cases, implemented in connection with various urban development projects-for example, in conjunction with residential construction in the Gostenhof area, around the Westbad neighborhood, and in parts of the harbor area. Owners who wish to develop or sell properties in the city center or in neighborhoods close to the city center should check whether participating in a planned neighborhood garage can replace the parking space requirement on their own property-this saves construction costs and creates flexibility for residential uses on the ground floor.

The buyout option under Art. 47 BayBO is actively available in Nuremberg: Anyone wishing to waive the obligation to provide parking spaces pays a fixed waiver fee to the city and is exempted from the obligation to provide parking spaces on their own property. We can advise you on whether such a waiver makes economic sense for your project and how the current waiver fee in Nuremberg is calculated for your project.

For owners of older garage buildings in downtown locations, the question of repurposing or demolition is increasingly arising: Conventional car parking garages are seeing declining utilization, while the demand for bicycle parking facilities, logistics space, and mobility hubs is rising. A change of use or a structural addition can create significant added value-but requires a review under building regulations.

Frequently Asked Questions

Can I rent out my parking space in a neighborhood garage to non-residents?

This depends on the terms of use for the neighborhood garage and the specific operating concept. Some neighborhood garages are reserved exclusively for residents, while others make excess capacity available to external users (businesses, short-term parkers). Subletting is generally possible if the operator agreement permits it.

Does a parking space in a neighborhood garage count as separate ownership?

In a neighborhood garage under the Condominium Act (WEG), a parking space can be structured either as separate ownership (with a share of co-ownership) or as a right of exclusive use of a common area. The exact legal structure can be found in the partition agreement and the land registry. Parking spaces under separate ownership can be sold and mortgaged separately.

How does a neighborhood garage affect the appeal of a residential complex?

An easily accessible, secure, and modern neighborhood garage adds value for many buyers and tenants. In particular, the integration of electric vehicle charging infrastructure and bicycle parking facilities makes modern neighborhood garages a marketing advantage-especially among the younger, mobility-conscious target group.

Neighborhood Garages and Parking Space Buyouts in Nuremberg

In Nuremberg, under Art. 47 of the Bavarian Building Code (BayBO), it is possible to replace the obligation to create parking spaces on one’s own property with a buyout payment to the city. The amount of the buyout payment is determined by the City of Nuremberg’s parking space regulations and varies depending on location and zone. In areas close to the city center with good public transportation access, the fee typically ranges between 8,000 and 18,000 euros per parking space (as of 2026). These funds flow into a municipal fund, which can be used, among other things, to finance or subsidize neighborhood garages.

For property developers and project developers in Nuremberg, the parking space fee is an important planning tool: it allows the land area to be used more fully for residential or commercial purposes instead of building costly underground garages. The economic decision depends on whether the construction costs of a private underground garage exceed the parking space exemption fee-with current underground garage costs ranging from 25,000 to 50,000 euros per space, the exemption fee is often the more cost-effective alternative in downtown Nuremberg locations.

How will the use of neighborhood parking garages develop in the long term?

Experts expect that the utilization of traditional parking spaces in neighborhood garages will decline in the medium to long term-driven by electric mobility, carsharing, and changing mobility preferences. For investors in neighborhood garages, this poses a risk of repurposing: conventional parking garages lose value as car density decreases. Future-proof concepts therefore plan flexible floor plans from the outset, allowing for later repurposing into logistics spaces, bike hubs, or even residential use. In Nuremberg, the city planning office has published initial guidelines for climate-friendly mobility concepts in new residential districts that integrate neighborhood parking garages as part of an integrated mobility and infrastructure concept.

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