The concept of a penthouse is far removed from its modern luxurious connotation. The word originates from the Old French term “apentis” or “appendiz,” which referred to a small annex attached to a building, such as a shelter. This term made its way into English and evolved into “pentis,” used to describe modest additional structures. Over time, the word transformed into the modern “penthouse,” but its meaning underwent a significant change – now it refers to an exclusive living space, standing in stark contrast to its original definition.

A penthouse is far more than merely an apartment on the top floor – it is the crown jewel of a building. Always situated on the highest level, a penthouse not only offers stunning views but also provides privacy and exclusivity. Penthouses exude sophistication through a range of distinct features. Occupying the topmost level, they provide breathtaking views of cityscapes, oceans, or scenic natural surroundings. A penthouse possesses clearly defined characteristics that set it apart from other luxury apartments. Below are the key features that help define a penthouse:

Top-Floor Location – A penthouse is always located on the building’s top floor, often occupying the entire floor or a substantial part of it.

Private Outdoor Space – One of the most important elements of a penthouse is its private terrace or balcony, offering extraordinary views.

Private Access – Many penthouses offer privacy through dedicated elevators or entrances.

Spacious Layout – Penthouses are often larger than regular apartments, featuring expansive living areas, high ceilings, and often more than one living room.

Luxury Finishes – Every detail, from flooring to lighting fixtures, is crafted from high-quality materials, often custom-made and designed.

Panoramic Views – The elevated height provides remarkable views, whether of city skylines or the sea, which are always a defining aspect of the penthouse experience.

Private Rooftop Terrace – Some penthouses include private rooftop terraces equipped with pools, gardens, or leisure areas.

State-of-the-Art Technology – Smart home systems that conveniently control lighting, security, climate, and entertainment are often standard in penthouses.

Unique Design – No two penthouses are alike. They are usually designed according to the owner’s preferences, offering unique and customized living solutions.

Prestige and Value – A penthouse is an exclusive property, often sold at exceptionally high prices, frequently in private transactions.

The supply is quite modest, although I must add that the situation has improved significantly over the last five to ten years. When comparing cities, we primarily focus on the capital’s market, as the majority of this category of property is located there. Properties meeting penthouse criteria can certainly be found in other Estonian cities such as Tartu, Pärnu, and Viljandi, but their presence is very marginal.

In Tallinn, penthouses can be found in seaside developments like Noblessner, the Kalaranna district, and the Meerhof buildings in Pirita. The Kentmanni 6 building in the city center has also gained iconic status. Penthouses can be found in the Old Town as well, mainly in Toompea, which offers unique views and privacy due to its elevated position. Several new high-rise buildings are currently under development in the city center, with plans to include penthouse-type apartments on their top floors.

The short and simple answer is – no. All penthouses are rooftop apartments, but not all rooftop apartments are penthouses. As previously mentioned, the term “penthouse” requires specific features and premium-class standards that not all top-floor apartments meet. Here are some examples that do not qualify as a penthouse:

Regular Top-Floor Apartment – If the apartment is on the top floor but lacks spaciousness, luxury finishes, and privacy, it is not a penthouse.

Loft or Duplex – Apartments spanning two floors can be spacious and have interesting designs, but they do not automatically qualify as penthouses, especially if they are not on the highest floor of the building.

Small Top-Floor Apartment – Even if the apartment is well-furnished, if it is small, it does not meet the criteria of a penthouse, as size is a key factor.

Penthouses are not just luxurious homes; they are also investments that grow in value over time. The demand for premium real estate, especially in prime locations like Tallinn, has steadily increased. Given their limited availability, penthouses retain their value exceptionally well and often appreciate faster than other types of properties. Investing in a penthouse means acquiring a tangible asset that can serve both as a residence and a solid financial investment.

In Estonia, the market for luxury real estate, particularly penthouses, has shown remarkable resilience and growth. Due to the limited supply, this asset class is highly valued and in demand. The trend leans towards modern, energy-efficient buildings that offer smart home features and sustainable design. This combination of features makes penthouses increasingly attractive for both living and investment purposes.

Penthouses represent the crème de la crème of urban living. The limited availability of this asset class, along with its significant investment potential, makes penthouse apartments highly sought after in the real estate market. Finding the right penthouse requires time and patience to discover “the one.”