It is possible that the trend is declining.
What happened? The cost of housing with balconies and terraces in France during the pandemic is growing right before our eyes. A study by Meilleurs Agents in November in 11 of France’s largest cities found that having a balcony or terrace increases the cost of housing by 9.9%. In May this year, a similar study showed an excess of prices for this category of housing by 8.8%, says BFM Immo.
Details. Of course, there has always been a difference in price, but since March 17, when France closed for the first quarantine, the value of housing with open space in the eyes of the French has increased significantly. Therefore, even with the onset of cold weather, this difference did not diminish, but continued to grow. Overpricing for terraces and balconies is now 1.3 percentage points higher than before the first quarantine.
Is the trend fizzling out? “Before many people wanted to have an apartment with a terrace or a balcony in the city. But in May this year, after the restrictions were imposed, this desire intensified. In large cities, buyers were willing to pay more for these privileges. However, the trend peaked in the summer and we are now seeing a weakening, which could herald a return to a normal, pre-pandemic state in the coming months, ”said Barbara Castillo Rico, head of economic research at Meilleurs Agents.
Change of priorities. In any case, the ongoing crisis has already led to a change in the selection criteria for at least 20% of the French who intend to buy a home. One of the main new factors was the presence of a balcony or terrace – it is named by 21% of respondents, as well as a larger size of housing than it was assumed at the beginning of the search: it is mentioned by 19% of survey participants.
Methodology. The Meilleurs Agents study was conducted from November 16 to 18, 2020, on a sample of 1,532 people who indicated their preferences on an online platform and said they wanted to buy or sell a home within six months.
The French have not yet decided whether they will seriously change their habits due to the pandemic:
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