Underground parking garage

An underground parking garage is a parking facility that is either entirely underground or at least partially embedded in the ground, accessible via ramps or elevators. It is used for parking motor vehicles and is typically built as part of residential, office, or commercial buildings. Underground parking spaces can be registered as fractional ownership in the land registry and are of considerable importance as an investment and as an asset that increases the value of the residential property-especially in locations close to downtown areas with a shortage of parking spaces.

Legal Classification of the Underground Parking Garage in the WEG

In a condominium association (WEG), the underground parking facility-i.e., the ramp, access road, ventilation system, fire protection equipment, sprinkler system, and roadways-is considered common property and is maintained using the association’s funds. The costs for this are allocated to all owners according to the formula specified in the community bylaws-including apartment owners without a parking space, if the declaration of division so provides.

The individual parking spaces, on the other hand, are generally registered as fractional ownership in the land registry. Owners may therefore sell, rent, or mortgage their parking space independently, provided the declaration of division does not impose any restrictions (e.g., a right of first refusal for the WEG or the parking space being tied to a specific residential unit). The sale of an underground parking space requires a notarized purchase agreement and a land registry entry-it is thus just as formal as the purchase of an apartment.

Maintenance and Typical Renovation Costs

Underground garages require intensive maintenance and incur significant costs over their lifetime. The main cost drivers are:

• Underground garage waterproofing: The waterproofing of concrete ceilings and walls against water penetration must be renewed after 20-30 years. For an apartment building with 20 parking spaces, total renovation costs can amount to 200,000-500,000 euros-a significant special assessment when divided among all owners.
• Fire protection systems: Sprinkler systems, fire alarm systems, and smoke exhaust systems must be regularly maintained and replaced at the end of their technical service life.
• Ventilation system: A mandatory component under the Garage Ordinance, it incurs ongoing operating costs and must be periodically replaced.
• Road surface: Concrete repairs, markings, and pavement surfaces wear out due to vehicle traffic and freeze-thaw cycles.
• Ramp: Damage from de-icing salt and freeze-thaw stress requires regular repairs.

Buyers of apartments with underground parking spaces should check the condition of the garage and the amount of the maintenance reserve fund before purchasing. We recommend reviewing the condominium association minutes from the past three years for any indications of water damage, waterproofing issues, or planned renovations.

Underground Parking Spaces as an Investment

In urban areas with a shortage of parking spaces-such as Nuremberg’s city center, the Wilhelminian-style neighborhoods (Südstadt, Johannis, Maxfeld), or Erlangen-underground parking spaces yield attractive rental returns. Market prices in Nuremberg range from 15,000 to 50,000 euros, depending on the location, width, and amenities of the parking space; Outdoor spaces in sought-after downtown locations can command exceptional prices exceeding 50,000 euros. The monthly rent is 60-150 euros, resulting in gross returns of 3-6%.

Underground parking spaces can also be purchased separately if they are registered as fractional ownership-an interesting entry point for small investors with limited capital. Management is straightforward: no rent reductions due to defects in the leased property, no protection against termination as with residential housing, and short notice periods. However, the rate of appreciation is lower than for residential real estate, and the electrification of the underground garage (charging stations for electric vehicles) may incur additional investment costs.

Practical Tip for Owners in Nuremberg and Franconia

In Nuremberg, parking in the downtown districts is scarce and expensive. An underground parking space significantly increases the value of a condominium-buyers demonstrably pay more for units with underground parking spaces than for comparable properties without one. For new construction projects in Nuremberg, an underground parking space is often mandatory (parking space ordinance), which limits the supply of parking spaces available for separate purchase.

Anyone buying a condominium should check the latest condominium association minutes to see if major underground garage renovations are planned-the costs are distributed among all owners via special assessments, and an upcoming major renovation can quickly cost 5,000-15,000 euros per unit. We are happy to check this as part of our buyer consultation and review the condominium documents for you so that you don’t encounter any unpleasant surprises after the purchase.

For investors looking for an entry-level property: Underground parking spaces in downtown Nuremberg are often easier to sell than apartments, as less capital is required and the pool of potential buyers is broader-commuters, residents without their own parking space, and businesses are constantly on the lookout for such properties.

Frequently Asked Questions

Can I sell my underground parking space separately?

Yes, if the parking space is registered as co-ownership in the land registry and the declaration of division permits separate sale. In many condominium associations, however, the parking space is tied to the residential unit-either through a corresponding clause in the declaration of division or through a right of first refusal held by the association. Check your condominium association’s declaration of division before looking for a buyer. A notary can quickly assess whether your parking space is eligible for sale based on the declaration of division.

Who pays for repairs to the underground garage ramp?

As part of the shared underground parking facility, the ramp is considered common property; the costs are covered by the condominium association from the maintenance reserve fund or-if the reserve is insufficient-distributed among all owners via a special assessment. It is important to know that even owners without an underground parking space may be required to contribute to these costs if the declaration of division so provides. In newer community bylaws, an exemption from costs is often agreed upon for non-participating owners-check the regulations in your homeowners’ association.

How can I tell when buying a property whether the underground garage needs renovation?

Request to review the homeowners’ association minutes from the past three years-resolutions and discussions regarding maintenance needs are documented there. Check the amount of the maintenance reserve and ask for any available expert reports on the condition of the waterproofing and the technical systems. Visible water stains, salt efflorescence, or spalling concrete on walls and ceilings are clear indications of waterproofing problems. For buildings constructed before 1990, we recommend an on-site inspection with a building inspector who can assess the technical systems and waterproofing and provide you with a realistic cost estimate for upcoming renovations.

Back to the Real Estate Glossary.