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Paris real estate after quarantine: terraces and balconies driving up apartment prices
After two months of quarantine, outdoor spaces are higher than ever on the wishlist for potential buyers, and consequently driving up prices.
Although balconies, terraces, or outdoor gardens were already considered a major selling point before quarantine, they’re having an even greater impact on prices post-quarantine. A place to enjoy a meal or have a drink, do some work, garden, or read in the sun, outdoor spaces have become a luxury.
According to the latest study by MeilleursAgents, which analyzed transactions involving more than 35,000 apartments since the beginning of 2019 in France’s eleven largest cities, these outdoor spaces can even drive up apartment prices by an average of 8.8%. This impact, however, depends on several criteria.
City, surface area, and the floor level
First and foremost, climate has a strong influence on the value of an outdoor space. “A terrace in Marseille increases the price of an apartment twice as much as a terrace in Paris would: +15.9% in Marseille compared to +8.4% in Paris. Conversely, a terrace in Lille has only a small impact on the price of an apartment: +3.6%,” illustrates MeilleursAgents.
Saviez-vous qu’une terrasse ou un balcon au rez-de-chaussée a plus de valeur qu’au 2ème étage ? Pour découvrir l’impact de l’étage sur le #prix d’un #appartement avec balcon ou terrasse, c’est ici 👇https://t.co/A6qHvQ0pVm pic.twitter.com/xc0YJ87xAI
— Meilleurs Agents (@meilleursagents) May 25, 2020
Apart from geographical location, the size of the terrace itself is also very important. Unsurprisingly, the larger the surface area, the more the price increases, reaching up to +30% for exteriors larger than 50 square meters. Balconies and terraces less than 10 square meters, on the other hand, have only a small impact on apartment prices (+4.4%).
Floor level also has an influence. Contrary to expectations, an outdoor space on the ground floor increases prices by 12.5% as this is most often an outdoor garden,” notes MeilleursAgents. “In addition, a terrace is less valueable on lower floors (1st to 3rd floor) as it can either be blocked by surrounding buildings or overlook a noisy street.” The holy grail of outdoor spaces is still the top floor terrace (+14.1%), with an impact that is almost double compared to the other floors of the building.