Whether they’re considering a penthouse on the Thames, a Shoreditch Loft penthouse or a city skyscraper penthouse, useable outdoor space, likely tops the list of amenities that penthouse buyers are looking for!
So, how do you put a value on outdoor space? This is a question often asked and requires a bit deeper analysis.
Covid has seen the demand for property with outside space skyrocket, the home counties have been recording record sales. The same can be said for some of the best city penthouses. Outdoor space has become the must have and for the right space, the value can vary considerably.
Naturally there is a relationship between indoor and outdoor space, what that relationship is depends ultimately on the quality of the overall property, and then on the utility and usability of the space and the specific amenities related to it.
Recently Space Station sold a penthouse in Shoreditch, the owners had spared no expense on its interior and features included, Boffi kitchen, sliding privacy screens covered with Ralph Lauren fabric, Sonos and air-conditioning. This coupled with a 1200 sq. ft terrace and garage parking, saw us find a cash buyer inside 4 weeks and achieving a record price for the building.
When considering buying or selling a penthouse there are many variables to consider, however we will attempt to break down a few to consider –
Ideally the terrace should lead from the main entertainment area, with there being a cohesive connection from indoor to outdoor living area.
1000 sq. ft could be a deep terrace complete with furniture and even a kitchen – or a shallow 2 ft deep wrap around, with the same square footage but different value, due to usability
A terrace overlooking a park, river or garden square, may be more sought after, however, a skyscraper with far reaching views across the city maybe equally excite.
Privacy adds majorly to desirability and saleability, and something not easily found
Obstructions, such as a parapet wall that blocks the view from the terrace, would clearly be an issue and detract from the value.
A view will most certainly raise the pulse and add to the wow factor, albeit this would not constitute it being terrace amenity, and should have been considered this in the £per Sqft valuation of the apartment.
When there is only one penthouse in a development, it really adds value and prestige.
Whilst their added value is determined by a number of factors – its size, location, orientation and the degree of privacy, agents indicate that outdoor space adds between a 10 and 30% in some instances across the globe, they can contribute up to 50% of the internal value per sq. Ft
The true value of a roof terrace is not just in the financial contribution it makes when the apartment is sold, it’s also in the experience it provides to the homeowner. It was the sunrise and stillness of the River Thames that blew us away, at our breath-taking penthouse in Wapping London.
Let us know what makes your penthouse and terrace so special