Trends and research articles shown evidences that, there are still issues in preserving the privacy of different applications of IoT such as Smart Grid, Smart Parking, Smart City etc. This paper addresses usage of different sensors in different environments of smart parking and surveys the different approaches used so far to maintain privacy for payment and location such as financial constraints and preserving location information. In addition, a design of smart parking prototype of privacy preserving environment through Homomorphic encryption is applied. The result of the work will be such as to save the time, money and effort of drivers for a demandresponse parking.