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Is there more of a demand for condo units with balconies, than units without balconies in Downtown Denver?
Hello there! Thank you for your question about the demand for condo units with balconies in Downtown Denver. The short answer is approximately 59% of the condos sold for $400,000+ in the 80202 zip code region include outdoor space. Even a roof deck in a common area will raise the value of a luxury condominium by 7%. Experts say outdoor space in new condo projects should be bigger, more usable, curated and specialized. Below is a deep dive of my findings.
METHODOLOGY
After a thorough review of real estate databases, corporate websites, industry reports, and trusted media sites I found that no predetermined data exists for the number of sold condos with balconies that ranged from $400,000+ in the Denver area. I also was not able to locate days on market for the various condos sold in that region. However, in order to help you identify why your new building project should include balconies, I was able to triangulate available real estate market data and locate condo market reports that attach value to having access to outdoor space. In order to obtain a reliable estimate, while adhering to your exact parameters, I triangulated the number of units sold by using Zillow. Using the Zillow real estate database to search for sold properties, I limited results by condominiums/co-ops that were $400,000+ and sold within the last three years in the zip code 80202. This search strategy resulted in identifying 612 total properties sold matching your general criteria. The Zillow database also allowed me to search via keyword for balcony and alternative words like “deck” and “patio.” I chose to triangulate using the “patio” data point because it represented the broadest term since some agents may list outdoor spaces as gardens, balconies, lanais, decks, etc. This search filter resulted in identifying 364 properties were sold that contained some sort of outdoor space. Please note that this raw number is triangulated from data within a real estate database that does not guarantee all listings in an area, and should only be further triangulated or shared if noting those caveats.
RESULTS
Results from searching the Zillow database for condos that had outdoor spaces and sold for $400,000+ in the 80202 zip code showed a total of 364 properties; which is 59% of the condo market for that region. There were 121 listings with descriptions that specifically included the word “balcony," however, as noted above this number appeared too limited for the industry.
SUMMARY
Roughly 59% of the condos sold for $400,000+ in the 80202 zip code region include outdoor space. While this number shows a certain success for selling condos with balconies, many additional sources also note that outdoor features in condos are a selling point. A Financial Times article reviewed the housing and condo markets in Denver. Condo prices rose 43% since 2011. The Financial Times noted that of the 71 condo residences under construction in Cherry Creek North in 2015, only three remained up for sale after short turnarounds. The project included apartments ranging between $560,000 thru $770,000; with a penthouse priced at $3.69 million. Amenities included outdoor balconies. Balconies are sometimes one of the amenities that matter most. "Units that let in lots of natural light are more attractive, as are those with outdoor space, such as a patio or a balcony large enough for grilling and entertaining.” Real estate experts say that “prime outdoor space likely tops the list of amenities that luxury buyers are looking for.” Jay Parker, the CEO of Douglas Elliman’s Florida Brokerage, goes further to say, “10 to 15 years ago, outdoor space meant an eight-foot-wide terrace….outdoor space in new condo projects is not only bigger, but also more usable, curated and specialized.” Even a roof deck in a common area will raise the value of a luxury condominium by 7%. In New York City, one real estate magazine reported that those city dwellers with private outdoor space are the envy of 98% of the city. While that estimate may be a bit exaggerated, there is no denying that outdoor space adds to the options buyers consider as they dream of living in their new home.
CONCLUSION
To wrap it up, it is clear that condo units with balconies translate to better sales. Approximately 59% of the condos sold for $400,000+ in the 80202 zip code region include outdoor space. Even a roof deck in a common area will raise the value of a luxury condominium by 7%. Experts say outdoor space in new condo projects should be bigger, more usable, curated and specialized.
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