Adding new life—and value—to a 20th century home is no easy task. The challenge, however, becomes imperative in a highly competitive market such as Manhattan, which has seen a wave of ultra-high-end, sleek and brand new residential development in recent years.
For homeowners or would-be sellers looking to add value to their decades-old properties (there are over 1,000 pre-war condo conversions currently on the market), a new analysis by Elliman Insights, a publication of Douglas Elliman Real Estate, can shed light on where it makes the most sense to invest.
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Analyzing condo sales in pre-war buildings across Manhattan from January 2013 through May 2016, Kamila Akshalova, research analyst and author of the study, found that a one-bedroom unit with one bathroom had an average price of $1.2 million, while a similar unit with two bathrooms commanded an average price of $1.3 million, representing an approximately 9% premium.
And as the size of the apartment increases, so does the bathroom premium, meaning that in a three-bedroom condo, for example, a third bathroom would increase the value of that unit by 13%.
Concerned the addition will increase common charges? As a matter of fact, there is no substantial correlation between common fees and an extra bathroom, wrote Akshalova.
“For those would-be sellers, it may well be worth putting in that extra bathroom, especially if you have a two- or three-bedroom,” told Sofia Song, executive vice president of Data & Research at Elliman Insights, to Mansion Global. “The premium for an extra bathroom in those cases would far outweigh the costs of installing one—unless of course, you install a bathroom made out of gold.” (The cost of a new bathroom varies greatly depending on the level of the finishes, said Song.)
Adding an extra bathroom to a one-bedroom unit can increase the property’s value by 9%.
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If the upgrading effort becomes communal, adding a lobby attendant to an old building can be worthwhile. According to Song’s analysis, adding a part-time doorman increases an apartment’s value by 12%, and by 27% if the attendant is full time. And the hire could mean an additional $300 in monthly charges in a building with less than 100 residents.
And access to the great outdoors is appreciated by luxury buyers. Providing access to a common roof deck space would add a 7% premium.
Additions and by how much they raise a unit's value
| Additions | Price Increase |
| Full-time doorman | 27% |
| Extra bathroom to a 3-bedroom unit | 13% |
| Extra bathroom to a 2-bedroom unit | 11% |
| Extra bathroom to a 1-bedroom unit | 9% |
| Common roof deck | 7% |
Source: Elliman Insights