Parking spaces in London's most affluent neighbourhoods are selling for prices that rival homes elsewhere. Property broker James Forbes of Strutt & Parker recently handled a sale of an enclosed garage in Chelsea for £1 million. The garage backs onto a £25 million home and was bought by its owner to connect to their property.
Another client paid £700,000 for a parking spot near their £10 million home in Knightsbridge. This compares with average prices of £1.4 million for a two-bedroom flat in Chelsea and £1.9 million in Knightsbridge, according to estate agent Foxtons. Forbes describes the prices as 'ridiculous' but notes the 'marriage value' of adding parking to a high-value home.
The trend is not limited to London. In Sydney, a 12 sq m spot in Kirribilli sold for A$120,000, while another went for A$260,000. In Hong Kong, two spaces in a downtown skyscraper are reportedly worth $640,000 each. Similar demand exists in New York and Boston.
Two types of buyers drive London's market: wealthy homeowners seeking parking near their residences, and investors who rent out spaces for returns of 10% to 15%, says Charles Cridland of YourParkingSpace. In New York, parking spots are rare due to limited permits, with monthly rents in Manhattan ranging from $400 to $1,200.
