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RIPPLE EFFECT

Niagara Falls deemed a lucrative landmark imparting spinoff real estate value

Niagara Falls makes a list of select global locales where property owners enjoy spinoff real estate value for proximity to celebrated attractions. The consumer credit broker, money.co.uk, includes this sole Canadian entrant in a largely European and American field of rare real estate markets that border on iconic sites, but slots it toward the back of the pack of the 32 named lucrative landmarks.

“Our report has found that, globally, landmarks can be a fantastic selling point, but there are so many other things to consider,” says Salman Haqqi, the author and a personal finance expert with money. co.uk, which offers online mortgage rate comparisons among its services. “It does depend on the landmark. Some homeowners will love being next to an iconic tourist attraction. However, others might find the pollution, traffic and footfall overwhelming.”

Rankings are based on: average house prices in the surrounding postal code zone; average house prices within a 10- to 20-mile radius; the gap between those two averages; property demand based on the regional population; and traffic and carbon dioxide (CO2) emission levels in the area.

Real estate ripple effects are considered strongest in the environs of Arc de Triomphe in Paris, Château de Chillon in Vaud, Switzerland, and Buckingham Palace in London. Threebedroom dwellings in the vicinity of these top-three iconic sites command average prices of CAD $9.3 million, CAD $5.6 million and CAD $9.4 million respectively. While the first and third ranked landmarks rest in two of Europe’s most populous cities, Château de Chillon’s setting on the shore of Lake Geneva translates into one of the best traffic and CO2 scores among the 32 landmarks.

Completing the top 10 are: Palaces of Westminster, London, UK; Eiffel Tower, Paris, France; Times Square, New York, U.S.; Brandenburg Gate, Berlin, Germany; The Louvre, Paris, France; Sydney Opera House, Sydney, Australia; and Prague Castle, Prague, Czech Republic.

Meanwhile, in the 11th spot, the U.S. Whitehouse stands out for the whopping 2,395% differential in the average CAD $12-million price-tag for nearby threebedroom dwellings versus the CAD $484,000 average in outlying Washington D.C. neighbourhoods.

Niagara Falls is slotted in 21st position, sandwiched between Scotland’s Edinburgh Castle and New York’s Statue of Liberty. Average house prices near the falls are pegged at about CAD $1.38 million or a 101% premium over the CAD $688,000 average elsewhere in the city.

Proximity to the falls is something of a bargain in the overall context of the list, earning Niagara Falls 13th spot on the list of 15 landmark locations where average prices fall below 1 million UK pounds — at £799,000.

The most affordable real estate surrounds the Pyramids in Cairo, Egypt, where the average three-bedroom home goes for about CAD $62,800 (£36,270), followed by homes near Mont Saint-Michel in Normandy, France, at CAD $300,400 (£173,660) and the Wieliczka Salt Mine in Krakow, Poland, at CAD $320,000 (£185,000).

On average, three-bedroom homes in the vicinity of the 32 iconic landmarks command prices that are 246% higher than similar properties at a 10- to 20-mile distance. However, exceptionally wide gaps in a few cases skew that overall ratio.

In addition to the chart-topping premium for living near the Whitehouse, proximity to New York’s Times Square exacts a 1,060% toll, with the average three-bedroom dwelling costing nearly CAD $7 million more than threebedroom units elsewhere in the city. Premiums for living near the Acropolis in Athens, the Brandenburg Gate in Berlin or Trevi Fountain in Rome range from 857 to 409%.

In contrast, average housing prices bordering Edinburgh Castle, Italy’s Leaning Tower of Pisa and the Roman Baths in Bath, UK, are actually lower than elsewhere in those cities. Notably, the Lucrative Landmarks report fingers traffic and pollution among the factors undermining prices near Edinburgh Castle. ■