Well, a 35mm does not "magnify" the background very much, so out of focus points of light are rendered somewhat small. So...no "great big, giant, round, out-of-focus Christmas lights" will occur, as with a 300mm lens shot outdoors, for example. Also, the degree of out-of-focus-ness from a 35mm lens is not as extreme as say, the degree of out-of-focus one gets when using a 200mm lens...the longer lens has shallower depth of field and also has a somewhat exotic difference in that the longer lens has more of what is called "background blur".
With a 35mm lens set to f/1.8 or f/2 or thereabouts, there is a **somewhat shallow** depth of field if the subject is fairly close to the camera, and so if the background is relatively far behind, the background will be rendered **somewhat** out of focus...so...