Amenities & Services
International airports across the globe are facilitating unprecedented growth in their associated car parks owing to high increasing passenger numbers. Frost & Sullivan now estimate that the airport car parking provision is a £80bn industry supported by commercial and private investment. The industry maturity has arisen over a 32 year history providing proven income producing assets and high yielding investment returns.
Most large scale international airports are planning for decades of expansion between now and 2050. Manchester airport is a typical example with passenger numbers set to increase from 23 million to 55 million in this timescale. As a result, the number of car parking spaces will need to increase by 240% during this period. This equates to a minimum annual increase of 11% per year.
In excess of £50 million is now paid out in yield income to investors every year. The past three decades have seen phenomenal growth in air travel creating huge demand for car park spaces and maintaining high levels of expense for customers needing this supply. The next three decades will witness this demand increase substantially as land supply for car parks becomes increasingly difficult. Typical yields are projected to be double digit in the next few years with similar returns expected for the capital growth of car park spaces.