Starbucks Increases House Prices: The Frappuccino Effect

What do you pay attention to when buying a home or trying to estimate the value of your home? Probably condition of the house, age, number of rooms, heating, location Isn’t it such features?

OK then Having a Starbucks nearby or the possibility of Starbucks opening? Don’t say it doesn’t matter; In fact, having a Starbucks near your home is highly related to the value of the home, according to a study. This situation has even been given a name: Frappuccino Effect!

So what is this Frappuccino Effect?

Locations where Starbucks branches are opened change in house prices It’s called the Frappuccino Effect.

The Frappuccino Effect was first discovered by Zillow.com, America’s sahibinden.com.

Zillow.com Analysts say that over time, house prices in locations where Starbucks branches are opened in America are higher than other house prices. a big change They realize it is and start investigating.

The increase rate found by analysts was quite high. They had seen an increase of approximately 96%.

While the average increase in house prices in 2014 was 64%, the increase in prices of houses close to Starbucks branches was approximately 96% was at the rate.

For comparison, they also looked at homes near another famous chain in America.

When looking at the rate of increase in house prices near Dunkin’ Donuts, there is an increase, but it is as much as the houses near Starbucks. There is no big increase They reached the conclusion.

So could this be a coincidence? Researchers also focused on this problem.

Maybe incidentally people preferred to buy homes in areas where Starbucks locations were located.

To answer this question, Zillow researchers examined Starbucks locations in America and found that Starbucks branches usually in coastal areas, urban areas, and midwestern states They saw that they were clustered.

Another possibility is; These coffee chains opened branches by anticipating locations that would increase in value.

Maybe Starbucks is a big influence on a region. when demand increases He was opening a branch there. To determine this, researchers looked at the data and compared the house prices before Starbucks opened in a particular neighborhood with the house prices 5 years after it opened.

As a result of this comparison, the houses closest to Starbucks will be within 5 years. 21% houses that are a little further away show an increase in price, 17% It turned out that there was an increase.

In summary, the researchers found that changes in house prices could be associated with the opening of a Starbucks in a neighborhood. a significant difference He found it.

In light of these results, they decided to further the research with the support of Starbucks.

But To reach a healthy conclusion They had to eliminate some options. For this reason, they contacted the brand directly.

In their meeting with Starbucks officials, they discussed Starbucks’ location selection. a whole team tasked with analyzing They learned that it was.

So much so that this team was making analyzes in many regions, taking into account the human traffic of that region and many similar factors. In addition; assigned to make critical decisions related to branches such as location, branch design and similar regional teams It was also located.

So they learned that the Frappuccino Effect was the result of a data-driven, carefully made decision.

In summary, Starbucks officials with a science-based understanding They stated that they made a location selection. For this reason, they were able to occupy positions of increasing value with the decisions they made based on science.

This is both a science and a art They were calling it!

Let’s take a look at some Starbucks branches in our country. Bebek Starbucks is considered one of the most beautiful branches.

Another example is from Izmir. Gül Sokak Starbucks Reserve.

We don’t know how much attention you pay to the Starbucks nearby when buying a house, but when we look at the Starbucks branches in Turkey, these branches are generally in decent neighborhoods with heavy human traffic We see it intensifying.

For example, while we come across Starbucks branches in crowded shopping malls and in popular and decent districts such as Kadıköy and Bebek, we do not come across Starbucks branches in unpopular and even dangerous districts such as Tarlabaşı.

In conclusion; When buying a house, it is not only location but also countless subjective choices It is a fact that it was done. Although it would not be correct to determine the value of the house only based on the Starbucks branch nearby, if the home location If you have similar demands as Starbucks Perhaps it might be useful to take a look at their analysis. What do you think?

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