French parking spaces are becoming favoured by real estate investors

Escaping the constraints of the Alur law and in particular the harsh regulation of rents, this investment can provide a good return, provided you buy in the right place.

The heart of the eighteenth, nineteenth and twentieth districts of Paris parking spaces acquired for €25,000 allow the owner to collect a monthly rent of €110, representing a yield of 5% per year.

According notaries of Paris, the median price of a car parking space in Paris rose last year to €24,000 in the capital, €15,000 in the inner suburbs and €10,500 in the outer suburbs. In this niche market, the number of sales in the former in the Paris region is around 10,000 properties per year.

In Paris and in the provinces, the tram network, car-sharing schemes and presence of paid or free public parking can fluctuate the rental demand for privately owned parking spaces.

Even in the centre of the regional capitals, purchase prices and rents can flirt with those of Paris. Prices of €20,000 and €30,000 are often achieved in the seventh and nineteenth districts of Lyon, in the sixth and seventh arrondissements of Marseille and in the Saint-Michel district of Bordeaux.

With this specific type of real estate there is also a new strategy to due diligence. Once the right location has been chosen, you must ensure the ramp accessibility is of an appropriate gradient. Other tips include looking for lots with two side by side spaces, which are better than two in a row. Make sure the dimensions are good enough too: the ideal configuration being 2.5-3m wide by 5m in length. Beware of buildings from the 1980s that have very narrow spaces.