We often talk about investing in property, buying to rent, renovating an old building, etc. However, there is another investment solution that can be very profitable: investing in a parking space, with the intention of renting it out, of course.

In fact, the profitability varies between 6 % and 12 %. It is therefore much higher than that of a property.

Places that are worth their weight in gold

In Luxembourg in particular, finding a parking space is often a real struggle. So much so that some parking spaces are literally worth their weight in gold. As proof, one of them, located in an underground car park in the centre of the city, was recently put up for sale for the modest sum of... €215,000! Of course, investing in a parking space will not always cost you so much and there are many advantages. The first of these is that you won't have to maintain your property, apart from cleaning an oil stain from time to time. You don't risk any further deterioration.

Renting a parking space is also characterised by the absence of additional costs and the simplicity of managing the property: the lease is freely drawn up, the notice period is limited to one month... Moreover, demand is such that you will have no trouble finding a tenant. However, there is one caveat: be careful about the tax system, especially if you are buying a lot.

Investing in a parking space: a high return

By browsing the real estate ads on the dedicated websites, including atHome.lu of course, you will also see that parking spaces are rented at very good prices, and that demand is high. Ideally located in the centre of Luxembourg and in an underground car park, it can bring you up to €500 per month! More reasonably, you can expect to pay €200 per month. When you know that a monthly loan payment costs you approximately €130 for a 15,000 € loan over 15 years, you can see that the investment can be very interesting.

Which parking spaces to choose?

But you still need to choose the right space... It is always advisable to opt for underground car parks, which are more secure, ideally in the city centre, where parking is the most problematic. Pay attention to certain details, starting with the size of the space and the height of the ceiling of the car park: you don't want the owner of a large SUV or van to want to rent you the space but his vehicle won't fit! Finally, even if it is more expensive to buy, prefer a box closed by a metal curtain. This type of space is much easier to rent and much more expensive.