A penthouse is a luxurious apartment located on the top floor (typically the 50th floor and above) of a high-rise building. Such apartments feature exclusive layouts, the use of expensive finishing materials, floor-to-ceiling windows, private elevators, and direct access to the roof with observation decks or gardens. 

Penthouses are traditionally associated with a fashionable lifestyle in the centers of world megacities like New York, Dubai, or Hong Kong. These apartments demonstrate not only the owners' wealth but also provide access to developed infrastructure, shopping, restaurants, entertainment, and cultural events.

Red sofas in a penthouse living room

The first penthouses appeared in the 1920s in New York, setting the standard for luxury living for wealthy and famous urbanites. At that time, these “apartments with a view” allowed for fresh air and a sense of freedom through dense urban development.

The post-war baby boom and rising prosperity among Americans led to an expansion of the luxury real estate segment and penthouses. Since then, they have started appearing in Singapore, Hong Kong, Shanghai, and other Asian cities. In 1958, the first European skyscraper with a penthouse was built in Frankfurt. Paris' penthouses with stunning views of the Eiffel Tower define a new surge in popularity for these elite apartments.

Living room with terrace and sea view

What makes penthouses stand out?

Here are the key points:

  • Exclusive, spacious layouts
  • Panoramic windows and covered terraces 
  • Private elevators, lobbies and underground parking
  • Use of expensive finishing materials
  • Custom architectural and design solutions
  • Rooftop observation decks, winter gardens and pools  

Life in a penthouse provides:

  • Ultimate privacy and tranquility
  • Breathtaking panoramic city and landmark views
  • Enjoying sunsets without leaving your home
  • Easy access to upscale entertainment and shopping
  • Feeling of belonging to high society
  • Trophy property, marking success and achievement

Penthouse terrace overlooking the metropolis

Location’s impact on penthouse value

Location plays a key role in valuing a penthouse. The most sought-after are apartments with views in the centers of major world cities (Manhattan, Central London).  

Also in demand are coastal penthouses with stunning ocean views in Miami, Monaco, or Dubai. No less popular are apartments with views of the picturesque landscapes and vineyards of Tuscany.

When choosing a penthouse, pay attention to transport accessibility, proximity to parks and green spaces, as well as the developed infrastructure of the area.

The financial aspects of buying a penthouse

Purchasing a penthouse is a major investment requiring careful financial planning. 

Key points:

  • High price tag—from $10-80 million for a premium class property.  
  • Additional overhead costs—finishing, furniture, and luxury tax—in some countries.
  • Annual maintenance expenses include cleaning, security, and utilities.
  • Mortgage financing features include high rates, short terms, and a large down payment. 
  • Risks of price corrections in volatile global economic environments.

When purchasing a penthouse as an investment asset, it is important to realistically assess the potential for subsequent rental or resale.

Penthouse in a high-rise building with city views

Technological trends in penthouses

Premium penthouses actively integrate advanced technologies to increase comfort and security:

  • “Smart home” systems – home automation, remote management.
  • Personal elevators with face or fingerprint recognition.  
  • Electrochromic panoramic windows that change transparency.
  • Air and water quality sensors and filtration systems.
  • High-resolution CCTV surveillance and video analytics.
  • Eco-friendly technologies are also gaining popularity in the luxury real estate sphere. This helps reduce environmental impact and operating expenses.