Investing in a parking space in Luxembourg: is it a sound investment?

Investing in a parking space It allows you to get onto the property ladder with a budget that is generally lower than that required for buying a home. However, profitability depends on the purchase price, the rent, the location and the service charges. Before buying, you should therefore assess the actual return on investment and the demand in the neighbourhood.

Is it worth investing in a parking space?

A European parking space can be a relatively straightforward rental investment. The purchase price is generally more affordable than that of a flat. Day-to-day management may also take less time.

However, a parking space is not automatically a profitable investment. A high purchase price can quickly reduce the return, even if the rent seems attractive.

Advertisements published on atHome also show significant differences depending on location. During our survey on 14 August 2026, 168 garages and parking spaces were offered for sale in Luxembourg City. Among the listings on display, prices ranged from around €49,000 to €150,000.

As for rentals, 265 garages and parking spaces were on offer in the capital. The advertised rents ranged, in particular, between €120 and €400 per month.

These amounts correspond to prices shown in the adverts. They do not, therefore, represent average transaction prices. However, they do illustrate the importance of comparing properties on a neighbourhood-by-neighbourhood basis.

You can view garages and parking spaces at sell on atHome before setting your budget.

How do you calculate the profitability of a parking space?

The gross return provides a simple initial benchmark.

Gross yield = annual rent ÷ purchase price × 100

Let’s take a purely illustrative example. A parking space that has been purchased 60 000 € is rented out €180 per month.

The annual rent then amounts to 2 160 €. The gross yield is therefore 3,6 % before fees and tax.

However, the gross return is not enough to assess an investment.

To get a more realistic picture, you should also take the following into account:

• costs associated with the acquisition; ;
• any interest on the loan; ;
• service charges; ;
• maintenance or insurance costs; ;
• periods when the property is unoccupied; ;
• any management fees; ;
• the tax rules applicable to rental income.

The net return will therefore give you a more accurate picture of your investment’s actual performance.

Where can I buy a parking space to let out?

Location remains one of the key factors in profitability.

You may wish to look for a space in a neighbourhood where private parking is limited. Densely populated residential areas may be of particular interest. The same applies to certain areas close to offices or railway stations.

However, a central location does not automatically guarantee good profitability. The purchase price may be much higher there.

Before investing, compare the parking spaces on offer at the rental on atHome. This will allow you to see the asking rents in various towns and neighbourhoods.

Also take a look at the number of properties on the market. A high number of properties available in an area can affect how long it takes to find a tenant.

Finally, consider the alternatives in the vicinity. Public car parks, residents’ parking and public transport can affect the demand for private parking spaces.

What factors should you check before buying a parking space?

Price and location aren’t enough. A parking space must also be convenient to use on a day-to-day basis.

Before you buy, be sure to check the following in particular:

• the width and length of the square ;
• ease of manoeuvring ;
• the available headroom in a covered car park; ;
• the width of the ramps and access points; ;
• the opening mechanism; ;
• safety and lighting; ;
• service charges; ;
• the rules laid down by the co-ownership association; ;
• the presence of, or the possibility of installing, a charging point; ;
• the possible presence of a locked box.

Also bear in mind modern vehicles. A narrow or hard-to-access parking space may reduce the number of potential tenants.

If the property is situated in a block of flats, check the available documents before purchasing. High service charges will have a direct impact on your return on investment.

Should you choose a parking space or a locked garage?

An open space and a closed cubicle do not exactly meet the same needs.

A storage unit offers greater protection and security. This may be an advantage for some tenants.

However, the purchase price may also be higher. It is therefore important to check whether the additional rent actually offsets this extra cost.

A standard parking space may be more affordable to buy. It can remain an attractive option if the residential complex is secure and access is convenient.

There is therefore no single ‘best’ choice in absolute terms. Compare the additional cost with the extra rental income you can reasonably expect to receive.

Does a charging point make a parking space more attractive?

The ability to charge an electric vehicle may become a deciding factor for some tenants.

However, the presence of a charging point alone does not guarantee greater profitability. Its value depends, in particular, on local demand and the cost of installation.

In a block of flats, you should also check the technical feasibility. Some installations may require modifications or specific procedures.

Before buying, do ask whether the location already has a suitable power supply. If not, find out about the options for installing one.

Any such cost must then be factored into your profitability calculation.

What costs should you expect for a parking space?

A parking space is still a piece of property. Acquiring and letting it therefore involves a number of costs.

As well as the purchase price, you should also consider the following:

• costs associated with the acquisition; ;
• towards the service charges; ;
• any work that may be required; ;
• funding; ;
• in the event of insurance; ;
• during periods when the property is unoccupied.

If the property is intended for letting, tax implications must also be taken into account.

In Luxembourg, income from letting property is included in the calculation of taxable rental income. In principle, net income is calculated as revenue less any allowable deductible expenses.

Taxation may, however, vary depending on the circumstances. Certain VAT rules may also apply to the letting of parking spaces.

It is therefore advisable to check your circumstances with the relevant authority or a tax adviser.

Sources: Direct Tax Administration and Guichet.lu.

How do you choose a profitable parking space?

To assess an opportunity, start by considering a realistic rent. Don’t start by thinking about the return you’d like to achieve.

A simple method is to:

1. Compare parking spaces for sale in the sector.
2. Check the asking rents for comparable sites.
3. Calculate the gross return.
4. Deduct foreseeable expenses and costs.
5. Assessing rental demand.
6. Check the restrictions imposed by the owners’ association.
7. Compare the outcome with other possible investments.

You should also take your financing arrangements into account. If you take out a loan, the cost of borrowing will directly reduce the return on your project.

How can atHome help you prepare for your investment?

atHome allows you to compare garages and parking spaces in sell along with the seats available for hire.

This comparison gives you an initial overview of the advertised prices and rents. You can then calculate your return on investment using more realistic assumptions.

If your project requires funding, you can also simulate your loan with atHomeFinance.

Frequently Asked Questions about Investing in a Parking Space

What sort of return can you expect from a parking space?

There is no single rate of return that applies to all parking spaces. The return depends on the purchase price, the rent and the costs borne by the owner. To get an initial indication, divide the annual rent by the purchase price. Then factor in acquisition costs, service charges, tax and any periods when the property is vacant.

Should you buy a parking space in the city centre?

Not necessarily. A central location may attract high demand. However, the purchase price may also be much higher. The best investment depends on striking a balance between the purchase price and the potential rental income. You should therefore compare several neighbourhoods and look at the parking options available around the property.

Is it easier to rent a parking space than a flat?

A parking space generally requires less management than a property. It also involves fewer facilities to maintain. However, how easy it is to let depends primarily on local demand. A space that is poorly located, difficult to access or too expensive may remain vacant. You should therefore analyse the area before buying.

Is a charging point a benefit when renting a parking space?

A charging point can make a location more convenient for an electric vehicle driver. However, its value depends on demand and the cost of installation. In a block of flats, you should also check the technical feasibility and the necessary procedures. Any associated costs must be factored into the overall calculation of your investment.

Can you finance the purchase of a parking space with a loan?

Financing may be available depending on your project and your circumstances. The terms will depend, in particular, on the amount borrowed and your profile. Before investing, compare the cost of the loan with the expected return. You can use the atHomeFinance calculator to get an initial estimate of your financing.