In recent years, garages have become a good alternative to traditional financial products, such as bank deposits or government bonds. In Spain, the average yield of garages is 8.7%, and in Andalusia – 9.3%, according to the real estate portal Fotocasa. Seville also stands out as a highly profitable province in June 2021 with 12.1%. In the capital of Andalusia, parking rental prices range from 80 to 150 € per month, and garage sales prices range from 35,000 to 70,000 € in areas such as Nervión, Los Remedios and Centro. Prices are reduced to 10,000 € if we consider the areas of the capital Seville.
Fotocasa points out that the profitability of parking lots in Andalusia in June 2021 increased by two points in just five years, from 7.7% in 2017 to 9.3% in 2021. And although there is a slight decrease in the second quarter of the year compared to 2020, the profitability remains high. Even in Andalusia, the monthly increase is 0.2 points.
"Currently, garages are one of the most profitable real estate in the market. That is why we are seeing an increased interest in them as a form of investment for generating passive income. This is a good solution for thrifty people, because the initial investment is much lower than for other types of real estate and requires less maintenance than, for example, a house," says María Matos, research director and spokeswoman for the property portal Fotocasa.
Manuel Bermudo, a real estate agent (API), states: "In Seville, the profile of a garage investor is not a business investor. It's more like a person who rents out the other garages, unlike what happens in Madrid, where half of the football players have entire floors of parking lots."