Why Invest in Airport Parking
Potential Returns at a Glance
With the growth of air passenger travel worldwide, airport car parking is now at a premium. For many years, investors have enjoyed higher yields than traditional ‘buy-to-let’ investments, therefore investing in car parking spaces is now a well-established form of commercial property investment, and the capital required for entry makes airport parking an even more attractive proposition.
Airport parking is estimated to be worth $12.5 billion annually in gross rental income, and demand has been forecast to outstrip supply in many UK airports, of which many are already operating at almost full capacity on a daily basis. Airport parking investment is therefore a solid and lucrative opportunity, which is increasing in popularity among astute investors globally.
The evidence proves that airport car parking spaces are a solid commercial property investment capable of producing high income returns and long term strong capital growth due to the expansion of global air travel. Investments of this calibre are in short supply and very high demand.
An SAS report shows actual and predicted peak car parking demand for long and short stay car parks and confirms that much of the anticipated growth in long stay parking capacity will continue to be provided by third party off-airport operators.
|Rental Income||1 Parking Space||2 Parking Spaces||3 Parking Spaces|
|Years 1 & 2 Rental Income at 8% P.A||£2,000 p.a||£4,000 p.a||£6,000 p.a|
|Years 3 & 4 Rental Income at 10% P.A||£2,500 p.a||£5,000 p.a||£7,500 p.a|
|Years 5 & 6 Rental Income at 12% P.A||£3,000 p.a||£6,000 p.a||£9,000 p.a|
|Projected Capital Growth (RICS Valuation)||£12,500||£25,000||£37,500|
|Total Return (income + resale @ Yr6)||£52,500.00||£105,000.00||£157,500.00|
Facts & Figures
Annual rental income generated
by parking industry.
Global airport revenues
accounted for by car parking
Average occupancy of
Direct Parking’s airport spaces
at major International Airports across the UK
Capital Growth Created
for our buy-to-let property investors worldwide
Rental Returns Paid
to our buy-to-let property investors worldwide
Airport Parking Spaces
at major International Airports across the UK
Off-Airport Parking Spaces
owned outright across 15 different UK sites
Parking Spaces Leased
UK's largest Off Airport Parking Company
Airport Parking Companies Purchased
within the last 3 years
Build Complete on All Projects
ensuring no off-plan development risk
Spent on New Parking Technology
including the latest ANPR and state of the art systems
Why is this a Proven and Viable Investment?
Customers using these parking spaces will typically book on line and most leave their bookings until the last minute. The process is very simple and straightforward and there are several on-line booking sites to choose from.
The following gives an example of how revenues are generated but are only a guide. As it is unrealistic to assume that all car parks have maximum capacity every day of the year, we will base our figures on last year´s occupancy which was 92%.
Looking at several sites, the average charge per space is around £49.99. Multiplying this by 52 (weeks) gives the maximum revenue per parking space per year - £2599.48.
92% of 52 weeks equates to 47.84 weeks. Multiplying these weeks by £49.99 gives an annual revenue of £2391.52.
Naturally, overheads and salaries have to be deducted but most importantly it shows that the fixed return of 8% per annum (£1,600) is totally viable and with existing car parks already operating at near full capacity, similar income payments for future years are not unrealistic, particularly as recent figures show a steady increase:
- April showed an increase of 15.4% on the same period last year
- May showed an increase of 13.3% on the same period last year
- June – expected to be another record month
As airports become busier we feel that the 92% occupancy achieved last year will be maintained, if not beaten, year on year.
The individual car parking spaces are registered in your name as the owner at the Registers of Scotland, therefore you own it and it is yours. This is exactly the same as owning a house whereby you hold the Title Deed. The Registers of Scotland is exactly the same as the Land Registry in England and Wales except it deals with Scottish properties.
This is a tangible investment that clearly exists and we encourage clients to go and see for themselves. All six car parks have been operating at Glasgow Airport for between 5 and 15 years.
The latest news about investors in car park 1 confirms that the return on the investment has risen up to the 10.2% at the end of year two. If the investors decide to go ahead with the Airport Parking Investment they will continue receiving 10.2% for the following 2 years. At the end of year 4 the yield will be revised again and the return will be calculated according to the market situation.
Don't miss out! At the time of this article car parks 1 to 5 have already sold out and it won't be long before the recently launched final car park 6 sells out too. Once car park 6 is sold the investment at Glasgow will no longer be available.
If you are looking for a safe investment that pays good returns then the Direct Parking Investment is the one for you. With this product you know exactly where you stand and can easily predict what your rate of return will be.
We are ready to work with you to secure your parking space investment.