Parking lots, a stable and safe classic

Parkings is a great investment opportunity among Spanish real estate. Where is the best place to buy and rent a parking lot in Spain?
Berkshire Hathaway HomeServices, which landed in Spain in 2019, has made the Spanish market a priority in its expansion and announced the opening of 40 new offices over the next ten years by purchasing the agencies already in operation.

The real estate division of Warren Buffett, with 1,500 offices and over 50,000 agents worldwide, will focus its growth in Spain on the Mediterranean coast, Balearic and Canary Islands through the acquisition of agencies already in operation, with "expert knowledge of the local market and that share the company's values".

Parkings is a great investment opportunity among Spanish real estate. They are easy to let, there is a growing demand for them in the centre and they are easy to sell. Where is the best place to buy and rent a parking lot in Spain?
Warren Buffett
A central location in large cities guarantees good returns with low expenses. Parking lots profitability continues to decline quarter over quarter. According to the data compiled by Idealista, on average it has fallen to 6.5% in the second quarter of the year, but there is no doubt that a parking space in the centre of large cities is still a safe investment – at least for long-term investors looking for stable returns.

Covid-19 has established new rules of the game to the day-to-day life of Spaniards. One of the incredible novelties that the pandemic has brought is the increasing use of private vehicles to travel to work. It is in the best areas of large capitals where rental prices are much higher than those in the periphery.

Experts recommend buying property for investment in the centre of cities. However, beyond the price, the probability of renting must be prioritized, which in the areas with the highest traffic in capitals can reach 100%, which is becoming even more evident as regulated parking areas grow in capitals.

With the data for the first semester in hand, five capitals offer returns of at least 7%: Ávila, Murcia, Castellón, Toledo and Lérida. And among the big cities, Barcelona wins the game with a yield of 6.3%, while Madrid shows 4.8%.

Another of the significant advantages of parkings is the minimal maintenance cost. In addition, it is a very liquid asset, which can be sold very quickly. And finally, these assets are legally more flexible when renting than homes since parking lots do not fall within the Urban Leasing Law (Ley de Arrendamientos Urbanos) scope.

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