Idealista.com, a Spanish property portal, conducted a study on asking prices for Spanish cities that showed that apartments that have a terrace are commanding an average premium of 36%.
This study was based on the asking prices from Idealista's database of listings, one of the largest databases in Spain.
Asking prices for flats with terraces and without were compared, and it was found that apartments that have exterior space had an average €212,792 asking price compared to apartments without that had a €156,000 average asking price. That equates to a 36% asking price premium.
There are large regional differences. The largest premium is for the city of Santander, which is the capital of Cantabria, the northern region in Spain, where apartments with terraces have a 67% asking price premium, followed by 64% in Las Palmas de Gran Canaria and 57% Santa Cruz de Tenerife, which are both Canary Island cities.
There are also large premiums in Catalonia (53%), the provincial capital of Lleida, followed by 50% in Valencia, 45% in Alicante, and 43% in Barcelona. The smallest premiums are in Toledo (16%), Granada (15%), and Bilbao (11%), a Basque city.
A premium is also commanded by terraces within the rental market, although they are smaller differences. Landlords that have apartments with terraces are asking an average of 15% higher rents compared to those without:
900 €/month without and 1,041 €/month with terraces. Malaga at 69% is the biggest premium, although Barcelona's 28% is above average.
So in Spain you pay more to rent or buy an apartment that has a terrace, and you are also able to ask for more when you sell one.
These premiums are driven by the utilitarian value provided by extra exterior space in a place like Spain that has a pleasant climate. There is less utility value offered by terraces in countries that have cold climates.