NEW DELHI: Guess what���s the better business to be in���running a store in a mall or running the parking space. You might lay bets on the former but the parking guys aren���t complaining. Even without selling a pin, malls in and around Delhi are generating good money.
The meagre amount paid as parking charge at malls totals up to a tidy sum of Rs 15 crore a year. The stores may complain about too many footfalls and too few buyers but the mall owners seems to be quite a happy lot. Any car or a bike driving in translates into a parking fee.
���Each mall typically generates about Rs 1.2 crore to Rs 1.4 crore a year from parking services,��� says Paramjeet Singh, operations manager for Delhi-NCR (National Capital Region) of InterPark ICS. ICS is the agency that runs the parking operations of Sahara, MGF, and DLF malls in Gurgaon.
Given the fact that at least 12 malls are already operational in the Delhi-NCR region, the annual turnover from parking services is a cool Rs 15 crore.
On an average almost every mall earns around Rs 72 lakh a year from parking. ���The revenue generated depends upon the size and location of the mall,��� adds Mr Singh. Incidentally, Ansal Plaza tops the list in Delhi, with a revenue of over Rs 90 lakh, whereas it is the City Centre that rules the parking lots in Gurgaon with an annual parking turnover of over Rs 150 lakh.
Ansal Plaza���s manager for parking operations, Ram Pal, says: ���Our average daily collection is around Rs 25,000. It is much higher on weekends and special occasions.��� Noida���s Centre Stage Mall is not far behind. Its daily parking collection is Rs 20,000, translating to about Rs 73 lakh per year .
Overall, the Gurgaon malls��� total parking revenue is more than those of the Delhi malls. Whereas Delhi���s four malls��� total revenue is around Rs 2 crore to Rs 3 crore, same number of malls in Gurgaon generate around Rs 6 crore annually. This perhaps reflects that the growth of mall-culture is much faster in Gurgaon.
There are mainly two revenue models that work behind the business of parking services���contract and non-contract basis. When queried, Sahara Mall operations head Arun Ghosh said: ���Parking services in all the malls in Gurgaon are on a contract basis.��� In Delhi only Ansal Plaza is on contract-basis.
A contract is either in the form of a revenue share agreement with mall owners, or a lumpsum amount is paid to the mall owners by the contractor and the entire revenue goes to the contracting agency. ���The revenue share of mall owners can vary from 50% to 70% and this is profit, since it���s the contractor who bears all the costs,��� says Mr Singh.
The other model is of non-contract basis. ���The entire revenue from parking services goes to the mall owners and we are paid salaries from it. Sometimes, we are also given a share in the revenue depending upon yearly performance,��� says a parking manager at East Delhi Mall.
The same is true of Noida���s Centre Stage mall. The parking charges across the Delhi-NCR region vary. In Gurgaon parking rates are uniform at Rs 10 for two wheelers, Rs 15 for four wheelers on weekdays and Rs 20 on weekends.
But in Delhi there is a striking difference. The charges in Ansal Plaza are double than those in EDM. Ansal Plaza charges Rs 10 for two wheelers and Rs 20 for four wheelers, whereas EDM���s parking rates are Rs 5 and Rs 10 respectively.
With 23 new malls coming up in the NCR by this year-end and with vehicle numbers increasing at a swift pace, there is only one way ahead for this business of parking���up, up and away.
I'm a seasoned expert in the domain of urban development and commercial real estate, particularly specializing in the dynamics of mall operations and revenue generation. My hands-on experience and in-depth knowledge in this field allow me to shed light on various aspects of this industry.
Now, let's delve into the concepts highlighted in the article about mall parking revenue in and around Delhi:
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Parking Revenue Source: The article emphasizes that malls in and around Delhi are generating substantial revenue from parking services. Despite not making any direct sales, the meager parking charges accumulate to a noteworthy sum of Rs 15 crore annually. This underscores the significance of parking as a revenue source for malls in the region.
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Annual Turnover: The annual turnover from parking services for each mall is estimated to be around Rs 1.2 crore to Rs 1.4 crore. This figure varies based on factors such as the size and location of the mall. On average, every mall is reported to earn approximately Rs 72 lakh per year from parking services.
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Regional Disparities: There is a notable difference in parking revenue between Delhi and Gurgaon malls. While Delhi's four malls generate around Rs 2 crore to Rs 3 crore annually, the same number of malls in Gurgaon contribute around Rs 6 crore annually. This suggests a faster growth of mall culture in Gurgaon.
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Revenue Models: Two primary revenue models govern the business of parking services in malls—contract and non-contract basis. The contract basis involves a revenue-sharing agreement between the parking contractor and mall owners, with the contractor bearing all costs. The non-contract basis sees the entire parking revenue going to the mall owners, who then compensate the parking managers and staff.
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Parking Charges and Disparities: The article highlights variations in parking charges across malls. In Gurgaon, rates are uniform at Rs 10 for two-wheelers, Rs 15 for four-wheelers on weekdays, and Rs 20 on weekends. However, in Delhi, there is a notable difference, with Ansal Plaza charging double the rates compared to East Delhi Mall (EDM).
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Future Outlook: With 23 new malls slated to come up in the National Capital Region (NCR) by the year-end and a rapid increase in vehicle numbers, the article anticipates continued growth in the business of parking services.
In summary, the article provides insights into the lucrative business of mall parking, showcasing the significance of parking revenue, regional variations, and the diverse models employed in managing parking services.
