13 Jan 2022, 16:01 — 4 min read
Quality parking spaces are more essential than ever in the Philippines, particularly in cities like Metro Manila, Davao, etc.
The Philippines vehicle market in July 2021 slows down and remains 30.9% below pre-pandemic levels. 23,117 units have been sold in July (+2.5%), leading Year to Date sales at 168,606 units (+41.4%). The leader Toyota reports the best performance (+15.6%).
This shows that even with the pandemic, people are still acquiring vehicles, while the parking spaces aren't quite on par. As such, there has been a proposed bill in the Senate that before you may acquire a car from any merchant, you must provide a proof of parking space. This is supported by Department of Trade and Industry (DTI).
Following this proposed bill, it is already being enacted by our agencies in the Local Government Units (LGU) and other commercial establishments. With this, some people have been affected due to the lack of spaces for them to park their cars.
Parking slots are also considered as real estate. In fact, some rates of parking on a monthly basis in Metro Manila are quite pricey. In fact, it's almost the same as the rental rate of a house in the province—or maybe higher.
That is why parking solutions exist as an opportunity to create a positive cash flow by providing slots or spaces with minimal maintenance and enhancements.
1. Lease a property then sublease to car owners
The business model is similar also to subletting a property, where the one leases a property owned by another, then sublet it to occupants.
2. Buy a property, subdivide then lease
This is a similar model from the aforementioned one, but the difference is that you are the owner of the property. With this, you may hire a contractor to make your specifications and other parking solutions perfect for parking owners.
As suggested, the most common parking lot angle is ninety degrees. Diagonal, or rather 45-degree to 60-degree parking is also considered and somewhat easier to park on.
3. Partner with parking slot & garage owners then sublease
Technology firms like Dibz—a subsidiary of Metro Pacific Tollways Corporation, provides parking solutions via mobile app. They partner with garage owners then list the slots in their app for easier access to someone who is looking for a parking space depending on the terms.
This business model is great to have especially if you don't want the development approach of residential model. It may be a minimal development but comes with high demand, especially when the proposed bill is passed.
To explore business opportunities, link with me by clicking on the 'Connect' button on my profile.
Image source: Canva
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views, official policy or position of GlobalLinker.
Posted byCarlos Payumo Garcia
I'm Carlos P. Garcia. A Landlord and Business Development and Leasing Administrator of a Mercantile Leasing (Private Market) Business. I am offering stalls for lease to...
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