Hafnarfjörður scraps fees to encourage underground parking

Hafnarfjörður municipality has permanently scrapped fees for underground parking spaces in multi-unit buildings where three or more cars are planned, mbl.is reports. Officials hope the measure will encourage developers to build more parking spaces below ground.

The municipality had previously reduced the fees before the town council approved their permanent removal. Orri Björnsson, chair of the town council, said the measure was intended to show developers what the municipality wants, although it did not involve very large sums.

The previous discount was 75 percent on both road construction fees and building rights fees. Building rights fees have already been removed, while the road construction fees were now also scrapped. The latter amounted to approximately 5,000 krónur per square metre. For an average parking space, the reduction is around 150,000 krónur, while the total saving, including building rights fees, is approximately 500,000 krónur.

The municipality will also allow developers starting construction projects over the next two years to pay the fees in instalments. The road construction and building rights fees can be divided into four payments, made when projects reach building stages one, two, three and four. If construction progresses more slowly, the payments can be spread over a maximum of two years.

“This makes a difference. In multi-unit buildings, it amounts to around 75,000 krónur per square metre, divided into four payments, reducing the initial cost,” Orri said. He added that the aim was to help contractors and individuals start projects without reducing the municipality’s income, as the money would be collected later and adjusted for inflation.

Orri said the measures could help prevent the construction market from freezing completely. He also said Hafnarfjörður had sufficient land and planned areas to support the construction of many apartments, both on densification sites and on municipal land.