With many investors seeking stable and long-term returns in alternative asset classes, Rodschinson sees a growing number turns to the parking space segment. This relatively non-traditional real estate opportunity is driven by continued growth in car increases, while a push for greener cities has put pressure on the supply. As a result, parking fees and therefore rental income is on the rise.
A general trend has emerged in most key markets around the world: the number of cars per household continues to rise, with more and more vehicles hitting the road every year, particularly in fast-developing and emerging economies such as China, India, Brazil, South Africa and Indonesia. But also in Europe and North-America, steadily growing populations continue to buy more cars per household.
While the uptake of cars continues to grow, local councils and authorities have increasingly put owners and operators of car parks under pressure. Due to sustainability, environmental concerns and effective use of space in rural areas, the supply of available and suitable car park properties have faced enormous challenges in recent times.
While a car park investment seems to be very straightforward, Rodschinson has identified a number of pitfalls that clients should take note of. Those who are interested should proceed with caution. For example, local planning permissions, permits and future building plans need to be scrutinised properly. Moreover, our global team of experts always works with clients to make a plan for when the guaranteed income period runs out.
Since the car park property sector is one of the most exciting alternative real estate ecosystems within CRE, with our team representing dozens of investors, developers and other committed players, our team would be thrilled to tell you more about their past investment strategies and client proposals when it comes to vehicle space and car parking.