There is a clear before and after in the way we value outdoor space in a home, and that turning point has a date: 2020.
The lockdown changed something profound in people’s relationship with their homes. Those who had a terrace or balcony experienced it as a privilege. Those who did not took note. And when the time came to buy or move, that memory became a decisive factor.
It was not a temporary reaction. Four years later, outdoor space remains one of the most sought-after and highly valued features in the residential market. What the pandemic changed was not only demand—it changed mindsets. A terrace stopped being a bonus and became a necessity.
What the Numbers Say
The impact on price is real and significant. According to recent data from the Spanish housing market, properties with a terrace sell, on average, for 17% more than comparable homes without one. In Barcelona, that difference can exceed €130,000. Yet only 31% of residential properties in Spain have private outdoor space.
This imbalance between supply and demand is what sustains the premium. When something is highly sought after and relatively scarce, its value rises—and remains strong. Homes with terraces do not just sell at higher prices; they also sell faster and with less room for negotiation. In a competitive market, that is a very tangible advantage.
Not all markets react in the same way. In cities where housing supply is so limited that virtually any well-located apartment sells quickly, the premium attached to a terrace tends to be more moderate. However, in markets where buyers have the ability to compare options and take their time, outdoor space has a very noticeable impact on the final sale price.
From Amenity to Living Space
What has changed is not only how much people are willing to pay for a terrace, but also how they perceive it. It is no longer simply a place for a chair and a potted plant. It has become another room of the home: a summer dining area, a workspace with natural light, a place to relax, or an entertainment space. It is designed, furnished, and enjoyed throughout the year.
This trend is especially evident in the premium segment. Discerning buyers evaluate outdoor areas using the same criteria they apply to any other room: orientation, proportions, privacy, quality of finishes, and connection to the interior spaces. The question is no longer “Does it have a terrace?” but rather “What is the terrace like?” That distinction says a great deal about how the market has evolved.
This shift also reflects broader trends in urban design. Europe’s most dynamic cities have spent years rethinking balconies, terraces, and transitional spaces between indoor and outdoor living as essential components of a home rather than secondary features. What was once reserved for high-end new developments has become mainstream and now forms part of the expectations of a growing number of buyers.
What Does This Mean If You Are Buying or Selling?
If you are looking for a home, it is worth treating outdoor space for what it truly is: usable square metres that have a direct impact on your quality of life and on the long-term value of the property. A well-oriented terrace with privacy and genuine usability is one of the strongest assets a home can offer.
If you are considering selling, investing in making an outdoor area more functional—upgrading the flooring, adding lighting, incorporating greenery, or creating a partial enclosure where regulations allow—can be one of the highest-return improvements you can make. It does more than enhance aesthetics; it transforms an underutilized area into a compelling selling point.
At aProperties, we see this every day in conversations with our clients. Outdoor space has become a central factor in purchasing decisions—not as a passing trend, but as part of how we define the value of a home today.