A parking space is more expensive than a studio apartment used to be. And there is still no shortage of people willing to do so

The real estate market has just found a new secondary hero. Just a dozen or so years ago, a parking space, as we are talking about it, was simply an addition to the apartment. Today, it is increasingly starting to live its own market life – it has its own price, its own sales strategy and, increasingly, its own investors.

As experts from the RynekPierwotny.pl website note, in the largest cities, parking can cost as much as we paid for a small studio apartment a decade ago, and some buyers already treat it as a way to earn money.

Parking is no longer “free for the apartment”

Until recently, a parking space was something you asked about at the end of a conversation with a developer. Today, it is a separate investment product, and sometimes even an independent property with its own land and mortgage register.

However, not every place has this status. In some investments, buyers only buy a share in the garage hall, which later affects, among others, for resale or rental.

– In practice, this gives the owner great flexibility: the place can be sold independently of the apartment, rented or kept as a separate asset. In extreme cases, it begins to function like a small investment property – says Jarosław Jędrzyński, an expert at the RynekPierwotny.pl portal.

The third approach to the parking lot is becoming more and more common. For some it is a necessity, for others it is an unnecessary expense, but for a growing group of buyers – it is simply an investment.

Up to 350 thousand PLN for one parking space?

Parking space prices have long ceased to be symbolic. According to the RynekPierwotny.pl portal, in the largest Polish cities the typical range for parking spaces in underground garages today ranges from approximately 40,000 to 90,000. zloty.

On the outskirts of cities you can still find offers closer to the lower end, but in better locations prices rise quickly. In the central parts of Warsaw and Krakow, parking spaces in apartment buildings reach up to 250-350 thousand. zloty.

Above-ground seats remain much cheaper:

• on the outskirts they cost from about PLN 15,000. zloty,

• most investments range from PLN 20,000 to PLN 30,000. zloty,

• in places with major parking problems they reach up to 40,000. zloty.

In practice, this means that a parking space increasingly costs as much as a few meters of an apartment.

Developers use parking lots as a promotion

Although prices can be impressive, parking lots have also become one of developers’ favorite sales tools.

– Nominally, it is usually a few percent of the apartment’s value, but in practice it is one of the easiest elements to “set up” in the sales process – explains Jarosław Jędrzyński.

The expert indicates that reducing the price of a parking space is often easier to hide in the apartment’s margin. That’s why parking lots regularly appear in promotions.

– As a result, buyers can often count on negotiations. At the early stage of sales, discounts are rather symbolic, but at the end of the investment they can reach up to several dozen percent. There are also cases of “package” sales or promotions in which a parking space is offered for a fraction of the price, or even as a bonus for the apartment – says an expert from the RynekPierwotny.pl portal.

Interestingly, developers themselves often sell parking lots below the construction costs.

The parking space is supposed to make money

Rising prices have caused some buyers to treat parking spaces as a rental investment. Especially where parking on the street is impossible.

– In good locations – especially where there is a shortage of parking spaces and paid parking zones apply – such investments can generate stable, although moderate income, says Jędrzyński.

They have the greatest potential:

• centers of large cities,

• densely built-up housing estates,

• areas covered by paid parking zones.

With a place worth approximately PLN 60,000. PLN monthly rent may be approximately PLN 300-600. However, after deducting taxes and administrative fees, the real profit is significantly lower.

Experts from the RynekPierwotny.pl portal estimate that the rate of return on renting a parking space is usually around 5-7%. annually. However, not every location offers a chance for success.

– The worst conditions occur where parking is not a real problem. This applies especially to peripheral settlements with good transport connections, but with high availability of land. If there is more than one parking space per apartment, and residents can easily find a space “near the block”, the rental potential drops dramatically, says Jędrzyński.

The parking space market shows more and more clearly that parking is no longer an addition to the apartment. Today, it is increasingly becoming a separate business.