Residencial Bunker - Overview

Residential Bunker Highlights

Overview on Property Appreciation with a Bunker

The appreciation of properties with residential bunkers (or family protection shelters, such as safe rooms or underground shelters) varies significantly by country, depending on factors like perceived threats (e.g., wars, natural disasters), local regulations, and market demand. In countries like the USA, Israel, and Switzerland, bunkers are common due to historical and current security contexts. Precise quantitative data on appreciation percentages is limited, as bunkers are a niche market and owners do not seek publicity. Based on real estate sources and market analyses, bunkers can add value by attracting buyers concerned with security, reducing insurance premiums, and improving marketability, but the return on investment (ROI) depends on installation costs (generally US$10,000 to US$100,000 or more) and location.

Research indicates that properties with bunkers can appreciate by 5% to 10% on average compared to similar properties in the neighborhood without this feature, especially in high-risk areas. In specific cases, such as in Israel, the differential can reach 26%. For Switzerland, the impact is positive but less quantified due to the requirement for bunkers in new constructions. Below, I detail by country, with examples and comparisons.

United States (USA)

In the USA, residential bunkers are popular in regions prone to disasters, such as tornadoes in the Midwest, hurricanes in the South, or nuclear threats in geopolitical contexts. Real estate sources indicate that bunkers or safe rooms increase resale value by offering peace of mind, especially in luxury markets.

• Estimated Appreciation Percentage: 5% to 10% compared to similar properties without a bunker, with ROI of 40% to 60% in high-risk areas (e.g., Midwest, East, and South). In luxury niches, the increase can be greater due to demand for survival amenities.

· Influencing Factors: Insurance discounts of 5% to 20% for FEMA-compliant shelters. · Accelerates sales time by more than 10% · Comparison with Neighborhood Without Bunker: In areas like Texas, where companies like Rising S Co. reported 50% more interest in bunkers, properties with the feature can be worth thousands more, but without universal percentage data.

Israel

In Israel, bunkers (known as "Mamad" or safe rooms) are mandatory in new constructions since the 1990s due to missile threats. The war with Iran and other conflicts have increased demand, prioritizing properties with protection. The shortage of shelters in Arab or older areas affects the market, and the war has worsened the housing shortage, but bunkers elevate value by offering immediate security.

• Estimated Appreciation Percentage: Up to 26% more for apartments with Mamad compared to similar ones without protection. Example: An apartment with Mamad is worth about 1.45 million shekels (approx. US$390,000), versus 1.15 million (US$310,000) without.

Switzerland

Switzerland has the highest number of bunkers per capita (more than 370,000, covering 100% of the population), mandatory since the 1960s in new homes and buildings. They are used as storage, but with global tensions (e.g., war in Ukraine), the government is modernizing the network. Bunkers increase real estate value as fixed capital, especially for foreigners seeking discretion.

• Estimated Appreciation Percentage: There are no specific percentage data, but atomic-proof bunkers "increase the property's value," whether residential or commercial. Alpine real estate prices have risen 30% since 2020, with security contributing indirectly.

References:

https://nypost.com/2024/12/24/real-estate/private-nuclear-bunker-sales-are-on-the-risebut-experts-issue-stark-warning/

https://realtortoreality.com/does-a-storm-shelter-increase-home-value/ https://www.realtor.com/news/trends/demand-for-bunkers-and-safe-rooms-amid-presidential-election-wars-natural-disasters/

https://www.buyitinisrael.com/news/mamad-mamak-bomb-shelter/ https://www.cbc.ca/radio/asithappens/switzerland-nuclear-shelters-1.7411896