Parking lots investment

Parking spaces are an excellent investment opportunity in the Spanish real estate market. They are easily rented out, demand for them in city centers is growing, and they can be sold quickly. Where is it best to buy and rent out a parking space in Spain?

Central locations in large cities guarantee good returns with minimal expenses. The profitability of parking spaces continues to decline from quarter to quarter. According to Idealista data, on average it fell to 6.5% in the second quarter of the year, however a parking space in the center of large cities remains a safe investment - at least for long-term investors focused on stable returns.

Covid-19 established new rules for the daily life of Spaniards. One of the unexpected innovations of the pandemic is the increased use of personal vehicles for commuting to work. It is precisely in the best neighborhoods of large capitals where rental rates are significantly higher than on the periphery.

Experts recommend buying investment real estate in city centers. However, besides price, the priority should be the likelihood of rental, which in areas with the highest traffic in capitals can reach 100%, and this becomes even more evident as regulated parking zones expand.

Parking space yields in Spanish provincial capitals

Álava — 10.30% | Murcia — 9.60% | Castellón — 8.00% | Toledo — 7.40% | Lérida — 7.10% | Huelva — 6.70% | Pamplona — 6.50% | Barcelona — 6.30% | Seville — 6.00% | Palma de Mallorca — 5.70% | Girona — 5.60% | Oviedo — 5.60% | Burgos — 5.50% | León — 5.50% | Valladolid — 5.50% | Guadalajara — 5.40% | Las Palmas — 5.30% | Alicante — 5.10% | Santa Cruz de Tenerife — 5.10% | Badajoz — 5.00% | Cádiz — 4.90% | Málaga — 4.90% | Tarragona — 4.90% | Zaragoza — 4.90% | Madrid — 4.80% | Ciudad Real — 4.70% | Valencia — 4.70% | Logroño — 4.60% | Bilbao — 4.30% | Albacete — 4.20% | Córdoba — 4.20% | Vitoria — 4.00% | Segovia — 3.80% | San Sebastián — 3.80% | Granada — 3.50% | Palencia — 3.40% | Jaén — 3.30% | Santander — 3.30% | Salamanca — 2.40%

According to first-half data, five provincial capitals offer yields of at least 7%: Ávila, Murcia, Castellón, Toledo and Lérida. Among large cities, Barcelona leads with a yield of 6.3%, while Madrid shows 4.8%.

Another significant advantage of parking spaces is minimal maintenance costs. Additionally, this is a highly liquid asset that can be sold very quickly. And finally, such properties are legally more flexible when renting than housing, since parking spaces are not subject to the Urban Lease Law (Ley de Arrendamientos Urbanos).