Investment in parking spaces is one of the most accessible for most people when it comes to parking in areas not central. We find parking spaces depending on the cities and areas from 20,000 to more than 80,000 euros. The price mainly depends on the degree of scarcity of available slots. The central areas of major cities like Madrid and Barcelona is where the garages are more expensive due to the lack of availability.
We can establish two types of investment in parking spaces:
- Investing for rent. We must assess the price of the place but mainly the average rent in the area to assess the return on investment and the profit margin possible. The average return in this case is usually around 5% of the investment. Investing
- to sell. In this case we need to prioritize the current parking prices and expected future developments. It is very important to negotiate the price down on the purchase and select areas where there are possibilities of expanding demand in the future leading to a shortage. The cost can vary greatly depending on the evolution of the price. Should be considered when buying the garage pay taxes on capital transfers and should be discounted when calculating the profit margin.
In general, we can say that this is a type of investment that does not make much profit but do not involve excessive risk. The price of the garages do not have the problem of volatility that is housing. Although it is also likely to drop in price depending on the state of the housing cycle.
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