Is buying parking spaces and garages in Sofia still a high-yield micro-investment?

I am looking into diversifying my portfolio with small real estate assets and am considering purchasing parking spots or garages in central Sofia districts like Lozenets or Ivan Vazov. With the increasing parking restrictions and the green zone expansion, I suspect rental demand will remain high, but I am worried about the entry prices being too inflated. Has anyone successfully managed to secure a decent ROI on this type of micro-investment recently? I would appreciate advice on whether it is better to focus on underground garages or open-air spaces in terms of maintenance and long-term liquidity.

I've been tracking prices in Lozenets for a while and honestly, the entry prices are quite aggressive right now. You are essentially paying for the scarcity, but the yield is often compressed to 3-4% once you account for taxes and maintenance.

Go for underground garages every time. Open-air spaces in Sofia are a nightmare regarding security and weather damage, which significantly lowers your potential tenant pool. Liquidity is much higher for enclosed units.

It's a solid defensive play, but don't expect 'high' yields. It’s more about capital preservation than massive growth. If you are looking for different types of assets, you might find this guide on sea view apartments interesting for comparison.

The Green Zone expansion is definitely the main driver here. I bought a spot in Ivan Vazov three years ago and I’ve never had a vacancy. The demand from office workers and residents is constant.

Be careful with legal paperwork. If you are buying remotely, ensure your documentation is perfect. It is possible to purchase property using a Power of Attorney, but make sure you have a reliable local lawyer.

I would avoid open-air spots. In winter, snow removal becomes your problem if you want to keep the tenant happy, and in summer, the lack of shade is a deterrent. Underground is the gold standard.

The ROI isn't what it used to be five years ago. Prices have skyrocketed, so you are buying at the top. Unless you find a distressed seller, the math barely makes sense compared to a simple index fund.

Location is everything. If you are near a metro station in Lozenets, you will always have demand. Don't touch anything that isn't in a prime, high-density residential or business zone.

I tried investing in parking spots but the management overhead for such a small asset class can be annoying. Dealing with lost garage remotes and gate repairs eats into your profit margins.

If your budget is limited, don't get trapped by cheap coastal listings that promise high returns. Always do your due diligence, as explained in this article on why some properties are suspiciously cheap.

Underground garages also offer better security, which means you can charge a premium. People are willing to pay extra to keep their cars safe from hail and vandalism.

Check the building regulations for the specific garage you are looking at. Some older buildings have tricky ownership structures regarding the land beneath the parking area.

I think the market is overvalued right now. Everyone is chasing this 'micro-investment' trend, which has pushed prices to a point where the rental income doesn't justify the initial capital outlay.