Outdoor access: a lucrative asset in France’s property market.

In the wake of the pandemic, the value of outdoor access has taken on new significance in the realm of real estate. Balconies, terraces, gardens, and swimming pools have emerged as sought-after features, but what impact do they truly have on property prices? Meilleurs Agents, the leading online property valuation platform, sheds light on the influence of outdoor access on property prices in France’s 50 largest cities, including the capital, Paris.

Key Insights for France’s Major Cities:

1. Apartments with balconies or terraces command an average premium of 9.7% compared to their counterparts lacking outdoor spaces.
2. Houses featuring exteriors like terraces or gardens enjoy a 4.2% price advantage over similar properties without such amenities.
3. The presence of a swimming pool increases a house’s value by an average of 7.6% when compared to a comparable house without this feature.

While property prices in France’s 50 largest cities have experienced a robust growth of 16.5% over the past three years, it appears that apartments with outdoor access have been the primary drivers of this upward trend. During this period, apartments with balconies or terraces have witnessed an impressive price surge of 21.5%, surpassing the 15% growth of those without such features.

Although the post-Covid surge in prices for properties with balconies or terraces reached its peak in February, this attribute continues to retain its allure, offering substantial resale value. Indeed, the presence of a balcony or terrace translates into a capital gain of 9.7% upon resale of an apartment in France’s major cities.

Zooming in on apartments in France’s ten largest cities, the presence of outdoor space adds an average value of 9.9% compared to apartments without balconies or terraces. However, in some of these top cities, this value escalates further. For instance, having a balcony or terrace enhances the price of an apartment in Marseille by an average of 15.4% compared to its equivalent lacking outdoor access. In Nice, the increase stands at 10%, while in Montpellier, it reaches 9.8%.

To put these findings into perspective, let’s consider a concrete example. On May 1, 2023, a 45 m2 apartment in Lyon without outdoor access would typically sell for an average of €5,099 per m2. In contrast, the same property boasting a balcony or terrace would command a price of €5,441 per m2, resulting in a significant difference of €15,373!

“In France, particularly in major cities, the market is experiencing a contraction, with falling prices and higher negotiation rates. We observed a genuine frenzy for balconies and terraces since the beginning of 2021, amidst the post-health crisis context,” notes Barbara Castillo Rico, spokesperson for Meilleurs Agents.

While the trend may have cooled in 2023, with an average price increase of around 2% over the past year for both property types, apartments with outdoor access still possess more bargaining power, especially in high-demand areas.

“While restrictions on private swimming pool construction are on the rise in France due to the drought of the summer of 2022, the presence of a swimming pool remains a crucial factor in boosting resale value. However, given the current inflationary climate, it is vital to accurately assess the value of one’s property and the associated costs of pool construction to ensure real added value. The decision to invest should be based on each owner’s unique circumstances and long-term objectives for the property,” advises Barbara Castillo Rico.

Methodology:

The analysis relies on an econometric approach known as the hedonic method, which isolates the effects of other housing characteristics. Meilleurs Agents based its study on over 180,000 properties sold by partner agencies in France since January 1, 2020.

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