How can the value of real estate be maintained or, at best, even increased in times of economic uncertainty and continuously rising inflation? Markus Hölzl from ZAPF GmbH explains why investing in a garage can certainly increase the value of a home. ZAPF GmbH is one of the leading manufacturers of prefabricated concrete garages in Germany and knows the current trends and market situation inside out.
Hölzl: A garage is a tangible asset, a physical possession that is stable in value. The demand for parking space, whether for cars or for storage, is likely to continue, regardless of economic fluctuations.
What impact does a garage have on the value of the property as a whole?
Hölzl: A garage is more than just a place for the vehicle. It offers additional space for storing bicycles, tools and other items. We even have customers who decided not to build a basement when they built their house, preferring instead to use a spacious garage with add-on modules as an alternative. A modern garage increases the usefulness of the property and makes it more attractive and therefore ultimately more valuable.
Can you be more specific?
Hölzl: Let’s assume that the house and plot of land currently have an estimated value of around 270,000 euros. If a modern garage worth around 15,000 euros is added to the property, the total value could not only rise to 285,000 euros, but even to 300,000 euros.
A garage can therefore increase the resale value of the property. Many potential buyers value a secure parking facility for their vehicles.
Investors are increasingly interested in large-scale projects such as garage parks, why is that?
Hölzl: Garage parks are a profitable, low-risk capital investment and offer an intelligent way to use vacant space profitably. While prices are rising, garages often retain their value or even increase in value.
Renting out garages can also create a stable source of income.
And the demand is definitely there: In view of the growing number of vehicles, parking spaces are scarce, especially in cities.
Is this also worthwhile for smaller investment sums?
Hölzl: Yes, garages are not just a sensible investment for homeowners or large capital investors. The purchase costs can be precisely controlled by the number of garages – and they don’t even have to be very large. Normal earners can also invest in this way.
The pure construction costs for prefabricated concrete garages are many times lower than for apartments or houses, meaning that the investment costs are often amortized after just a few years.
In contrast to renting out a property, renting out a garage has a number of advantages. Service charges are only incurred to a manageable extent and garage maintenance costs are also low. Rent settlement is also much simpler compared to the settlement for houses or apartments.
