Breakdown of the Value Of A Condominium Balcony Or Terrace
What is the value of a condominium balcony or terrace? This is an interesting topic as many buyers will value balconies and terraces differently. To make things more complicated, there are so many different types and sizes of balconies. Here is a quick breakdown of the different types of balconies and terraces you can find with a condominium.
What is a Juliette balcony?
A Juliette balcony is a very narrow balcony which typically sits outside either a window or a pair of French doors. This balcony is so narrow that you might be able to step onto it but not much else. So, what is its purpose? Many people are turned off by Juliette balconies because they are confused as to what to do with the “space”. In fact, the Juliette balcony needs to be reviewed as an architectural opportunity to let air and light into your condominium. Not all condominiums offer floor to ceiling windows, a Juliette balcony not only provides that opportunity, it adds decoration with its railings. It also lets you tap into a green thumb and hang window boxes against the railing. Therefore, a Juliette balcony can add value to a condominium but not in the way a traditional balcony or terrace would. This is why a condominium with a Juliette balcony will typically be valued a little higher than one without any balcony.
You might have heard the words balcony and terrace thrown about – but did you know there is actually a difference between the two? The answer lies in the square footage of the space as well as the shape of the space. A 200 square foot space that is long and narrow (think 5 feet by 40 feet) will likely be considered a balcony, but a space that is also 200 square feet with dimensions of 14 feet by 14 feet will more likely be considered a terrace. What would be their value and what is their difference in value?
At the end of the day, the more you can do with the space the more value it will have. While some people will be content to fit a small folding chair on their balcony and read, everyone will appreciate the ability to fit a dining table and a barbecue. Yet, it is important to remember the law of diminishing returns. If you have a condominium with a one thousand square foot balcony or terrace, it is expected that the value of your condominium will be greatly impacted in a positive way due to the rare, large size of your outdoor space. If we extend this hypothetical and find another condominium of 2,000 square feet will the price of the condominium be double that of what we valued the one of 1,000 square feet? The answer is no.
What is the value of a condominium balcony or terrace? The answer lies in the space’s usability. If it can be used to entertain, if it has good views, if it is high enough and offers privacy these will all positively affect the value of a condominium. If you would like to learn more about how your outdoor space affects the value of your condominium or are looking to better understand this valuation process in your condo hunt, please feel free to reach out to me here.
