Investing in Airport Car Parks
It’s probably something you hadn’t thought about, however, airport car park investing is low maintenance, available at low cost capital and falls under international commercial real estate investing.
It has been predicted that an increase of four million drivers and air travellers will journey across America and its borders over the course of the next twenty-five years. In lieu of this discovery, there’s going to be a need for more long stay car parking spaces in the airports. Currently, there is a shortage and with the expectations of more travellers, airports will want to meet this demand.
Airport car parking is a billion dollar business worldwide and with many spaces operating at full capacity, investing in the industry would be a smart move. It is possible to purchase one or multiple spaces. Each space is entitled to its own separate deed and is registered in the owner’s name or in a company’s name. The guarantee is that within the first two years, there is an 8% annual return on the investment.
The High Points of Investing
Long stay airport parking is an exceptional opportunity for those who want to diversify their business portfolios.
- To purchase an individual car parking space one would need to only invest £25,000.
- There are extraordinary rewards of investing in airport parking with the current and with the anticipation of more air riders due to the up and coming expansions.
- Along with the 8% return after year two, there is a mark up of 10% by year four and even more than 12% after year six.
- Car parking spaces are nearly full each day, so there’s little to no risk.
If you take a look at Gatwick Airport, you will find out that it’s operating on a level that’s almost completely full. This is consistent with passengers continuing to board international and domestic flights. Car parking spaces are limited and that’s primarily due to the departures to East Asia and Latin America. It’s, in reality, Gatwick holds the position as being one of the most travelled airports in the UK as it reports record numbers in 2014.
Heathrow reports, as of March 2015, that the total number of terminal passengers were extremely close to being six million for the month and for the quarter, a whopping 16 million. Results for an entire year topped 73.7 million passengers. The larger airport facilities are fuller and the need for parking spaces remains to be a focal point for Heathrow and Gatwick International Airport.
Glasgow International Airport
Glasgow International is up and running at full speed. The car parking spaces are located next to the thriving airport, however, they need to add additional parking spaces to accommodate the traffic flow. With the expectation of expansions, Glasgow will fill the gap by adding over 15000 spaces over a period of time. Currently, they have 2,700 spaces in use. It’s critical that Glasgow updates its facilities to meet the growing demand of long term car parking spaces.
Glasgow International has at least 20,000 guests every day who travel their airways. The amount of car parking spaces should match the number of air travellers requiring long term car parking space. By the year 2020, Glasgow will have increased its parking spaces to match the need of the driver. As this happens, investors will see a marked return on their investment as the owner of these spaces.
Predictions in Travel and Revenue
Purchasing the single or multiple car parking space can provide a substantial income after the first two years of ownership. This opportunity is low risk to the investor and is highly profitable. With online booking and Number Place Recognition, it’s an incredible opportunity to rake in revenue.
Smart investors have put their euros and dollars into this venture. In fact, the have invested over £200 million in making sure Scotland’s airport has ample amenities. With the latest projection, the expectation is that the number of passengers will likely rise above 16 million by 2040 and those passengers will need long term parking.
Who predicted that? The econometric models were produced by Heathrow Airport Holdings Limited, which are comparable to the independent predictions completed by the Department for Transport. Who are Heathrow? Thy are formerly known as BAA. They changed the name of the company in 2012. Heathrow Airport Holdings operate and they own three other airports in the UK.
Why Invest in Car Parking Spaces?
The answer is quite simple:
- There’s a demand
- Income is paid quarterly
- Investment is virtually maintenance free
- It produces a high income
- It’s a low cost investment