By Joseph Wong
When we think about urban infrastructure, we often focus on the towering skyscrapers, sprawling shopping malls and intricate public transport systems. Yet, one of the most underestimated yet crucial components of urban development is the car park. Traditionally seen as mere storage for vehicles, car parks are increasingly being recognised for their multifaceted roles in functionality, urban aesthetics and, perhaps most interestingly, as lucrative sources of regenerative income.
Ironically, car parks are often overlooked when it comes to revenue generation but their financial potential is significant. Take, for example, IGB Bhd’s Mid Valley Mega Mall and The Gardens in Kuala Lumpur, Malaysia. These two interconnected shopping malls boast a combined total of 10,084 parking bays. According to their latest annual report, the carparks generated approximately 7.5% of the malls' total revenue, contributing over RM45.3mil last year to their substantial revenue of RM604.3mil.
In contrast, KLCC Property Holdings Bhd (KLCCP) has a total of 16,495 parking bays across 25 properties which generated RM66.4mil for their car park management division. Similarly, Pavilion Kuala Lumpur has 2,391 parking bays which contributes to its revenue of RM496mil and Pavilion Bukit Jalil has 4,800 parking bays, which also has higher earning potential than its Bukit Bintang counterpart.
These examples underscore how carparks can be a steady source of income for commercial properties, particularly in high-traffic urban areas. The revenue generated from carparks is not just limited to shopping malls. Airports, hospitals, office buildings and even residential complexes can benefit from well-designed and efficiently managed car park facilities. With the increasing demand for parking spaces in urban areas, car park operations can be a profitable business model. Monthly parking subscriptions, hourly rates and special services like valet parking all contribute to a steady stream of income. Moreover, car parks provide a relatively low-maintenance source of revenue compared to other commercial ventures. Once the initial investment in construction and technology is made, the operational costs of car parks are minimal. Regular maintenance, security and occasional upgrades are the primary expenses, making car parks a cost-effective component of urban infrastructure.
Enhancing property value
Moreover, car parks do more than just generate revenue. They also play a crucial role in enhancing the value of a property. In urban areas where space is limited, the availability of ample and well-designed parking can significantly boost the attractiveness of a commercial or residential property. For businesses, especially retail outlets and office spaces, the availability of convenient parking is often a deciding factor for customers and tenants.
Furthermore, the design and location of car parks can have a considerable impact on urban aesthetics. Traditionally, car parks were seen as necessary but unattractive components of urban design, often relegated to dark, concrete structures with little regard for their visual impact. However, this perspective is changing as architects and urban planners recognise the potential of carparks to contribute positively to the urban landscape.
Innovative designs that incorporate green spaces, public art and modern architectural elements are transforming car parks into visually appealing structures that complement their surroundings. For example, green roofs, vertical gardens and solar panels are being integrated into car park designs to enhance their environmental sustainability and aesthetic appeal. These design elements not only improve the visual impact of car parks but also contribute to the overall sustainability of urban developments.
Sustainability and the future
The role of car parks in urban sustainability is becoming increasingly important as cities worldwide strive to reduce their carbon footprints and promote greener living. Car parks, once seen as contributors to urban sprawl and pollution, are now being reimagined as essential components of sustainable urban infrastructure.
One of the key ways car parks contribute to sustainability is through the integration of eco-friendly technologies and materials. For instance, LED lighting systems, solar-powered walkways and energy-efficient ventilation systems are becoming standard features in modern car parks. These technologies not only reduce the environmental impact of carparks but also lower operational costs, making them more economically viable in the long term.
Additionally, many car parks are now designed with facilities for electric vehicles (EVs), including charging stations and designated parking spots. As the adoption of EVs continues to grow, the availability of convenient charging infrastructure in car parks will become increasingly important. This shift towards accommodating EVs aligns with broader efforts to reduce greenhouse gas emissions and promote sustainable transportation.
Moreover, some carparks are being designed as multi-functional spaces that serve as more than just vehicle storage. For example, car parks can incorporate public spaces, such as parks, plazas and recreational areas, making them valuable assets to the community. This multi-functional approach not only maximises the use of space in densely populated urban areas but also contributes to the overall quality of life for residents.
Critical components of urban planning
In densely populated cities, the strategic design and location of car parks are critical to managing traffic flow and ensuring the safety of both drivers and pedestrians. Car parks that are well-integrated with public transportation hubs, for example, can reduce traffic congestion by encouraging the use of public transit. Park-and-ride facilities, where commuters can park their cars and transfer to public transportation, are an effective way to reduce the number of vehicles on the road, easing traffic congestion and lowering emissions.
Furthermore, the safety and security of car parks are paramount. Well-lit, secure car parks with clear signage and surveillance systems are essential for preventing accidents and deterring crime. This not only enhances the safety of the car park users but also contributes to the overall security of the surrounding area.
The role of car parks in urban planning is also evolving as cities adapt to new modes of transportation and changing consumer behaviour. For example, the rise of shared mobility services, such as ride-hailing and car-sharing, has led to a reevaluation of carpark needs. In some cases, carparks are being repurposed or redesigned to accommodate these services, providing designated pick-up and drop-off zones, as well as short-term parking options.
Car parks are far more than just spaces to store vehicles. They are integral components of urban infrastructure that contribute to property value, generate substantial revenue, and play a critical role in the sustainability and functionality of cities. As urban areas continue to grow and evolve, the importance of car parks in urban planning and development will only increase.
The examples of Mid Valley Mega Mall and The Gardens, KLCCP and Pavilion Malls demonstrate the significant revenue potential of car parks while innovative designs and eco-friendly technologies highlight their role in promoting sustainability. As cities worldwide strive to become more sustainable and resilient, carparks will undoubtedly play a crucial role in shaping the future of urban living.
In summary, car parks are not just a necessity but an opportunity. With thoughtful design and strategic planning, they can enhance the urban environment, contribute to the economy, and support the transition to more sustainable cities. The next time you park your car, consider the broader impact of that space—not just on your convenience but on the city as a whole.
Stay ahead of the crowd and enjoy fresh insights on real estate, property development, and lifestyle trends when you subscribe to our newsletter and follow us on social media.
