As a general rule, we say a terrace adds around 20% to the price of a property. In general a terrace and an extra bedroom are inter-changeable. Fortunately we have a very good case study to illustrate the effect of the terrace on the sale price.

We have two apartments for sale in the prestigious Le Capitole building on the sea front, just a couple of blocks along the Promenade des Anglais from the Negresco Hotel, which are nearly identical. One is on the first floor, with no terrace, and the second is on the second floor with a small terrace on the sea side of the apartment. The apartments are directly on top of each other, and identical in size and internal layout. They are both in nearly identical condition, even down to the same patterned parquet flooring. They are both on the south-west corner and have the same view.

Apartment #1
  • Price €685,000
  • Size 73sqm
  • 2nd floor
  • Two bedrooms (one large and a smaller guest room)
  • Two small bathrooms
  • Terrace
Apartment #2
  • Price €585,000
  • Size 73sqm
  • 1st floor
  • Two bedrooms (one large and a smaller guest room)
  • Two small bathrooms

As you can see, there is a €90,000 price difference between the two. The price difference is 15%, the difference not being more due to the balcony being on a lower floor and (a) being more affected by road noise and (b) giving less clearance over the palm trees that line the Promenade thus less benefit of enjoying the view.

Prices correct at time of writing 2013