I have recently been working with several buyers who either require private outdoor space, or have been lucky enough to find it included in an apartment they love for other reasons. Spring and summer are definitely “terrace season,” as outdoor space takes on a special appeal on sunny, warm days. In fact, one buyer I was working with lost out in a bidding war on an apartment with a large terrace directly facing Central Park, after months of little interest while it was listing during the winter. The listing broker even told me that we would have definitely gotten the apartment if we had been bidding the same amount back in the cold and gloomy months of January and February, but in late March/early April, the same apartment had a much broader appeal.
Other buyers of mine, while not looking specifically for an apartment with outdoor space, found one with two large terraces, one with East River views, and fell in love. I have written before about the value of a view of nature from an apartment, as well as the value of a city view, and those intangible emotional benefits are heightened when the view is not contained behind glass, but rather experienced while also taking in the information obtained from other senses. To be on a terrace and seeing the East River, while also feeling a warm breeze, smelling the flowers you have placed in planters, and hearing the sounds of the city, is to be immersed in the experience.
There are multiple types of outdoor space, and some people have strong preferences for one type over the other, while others just want any opportunity to experience the outdoors from within their home. The least versatile is a Juliet balcony – enough to step outside and check the temperature or take in a few deep breaths of the summer air after a storm, but not enough to even place a chair. Larger than that are balconies, commonly boxy squares in postwar apartments, often with enough space for a few chairs and a table. The larger outdoor spaces tend to be true terraces (outdoor space with the building underneath it instead of something jutting from the building) or private gardens. Gardens tend to be most common in townhouses, or in the garden level apartments in converted townhomes or brownstones. Garden level apartments have the disadvantage of not being the sunniest apartments, with some exceptions, but for people who like the idea of children or pets playing in a ground-level garden, they can be highly valued. Large terraces are perhaps the most prized outdoor spaces, and relatively rare. A terrace with an iconic view – of Central Park, of a river, or a spectacular city view – can greatly increase the value of an apartment.
So how much does outdoor space affect the value of an apartment, if you have one – or how much more do you have to pay to get a place if outdoor space is a priority to you? As with everything else in NYC real estate, it depends upon so many variables – the location, the apartment itself, whether the building is a condo or a coop, walk-up or elevator, etc., etc. However, the value of outdoor space is often about 25-50% of the apartment’s price per square foot – higher if the terrace has a great view or is attached to a spectacular apartment, lower if it is on a lower floor or attached to a small apartment.
The most valuable outdoor space is the very one my buyer lost out on this spring – unobstructed views of Central Park (enough to increase the value of an apartment by 50% even from park-facing windows with no outdoor space) from a large terrace. Is outdoor space worth such an increase in price? As with so many other aspects of NYC real estate, that is up to you – for some, they may feel that they wouldn’t really use outdoor space and don’t want to spend the extra money, while for others, outdoor space is the most important aspect of their home search and they won’t consider a place without it. What I have learned this spring, though, is that timing is extremely important. If I am representing a seller who has an apartment with outdoor space, I would strongly recommend trying to list during the warm weather months if at all possible. Conversely, if looking to purchase an apartment with outdoor space, jumping on something during the winter can lead to a relative bargain compared to getting into a bidding war when the outdoor space is showing at its best. If you are interested in buying a home in NYC with outdoor space, or if you have one to sell, feel free to contact me (with no obligation) at firstname.lastname@example.org.