What Is a Penthouse? Comparing Penthouses vs. Apartments vs. Condos

TL;DR – What Is a Penthouse

• A penthouse is a luxury unit distinguished by exclusivity, elegance, and premium lifestyle amenities, not just its location on the top floor.
  

• It often features private outdoor spaces, like rooftop pools or terraces, high-end finishes, and smart-home technology.
  

• Penthouses can occupy the top floor or an entire wing, even lower floors, so long as they maintain superior layout, privacy, and exclusivity.
  

• In condo buildings, all penthouses offer larger footprints, elevated views, private access (e.g., elevators), and upgraded materials compared to standard units.
  

• In the Bahamas, penthouses in developments like Goldwynn, Albany, and The Reef provide villa-style living, duplex designs, noise reduction, and impressive appreciation.

 

According to Merriam-Webster, a penthouse refers to a living space located on the roof or top floor of a building. 

Over the years, penthouses have become more than just top-floor units. In today’s real estate world, the word “penthouse” means exclusivity, elegance, and lifestyle. Here’s what changed:

• Luxury:  Penthouses have always been high-end, but today they offer next-level features—think private pools, rooftop gardens, and smart home tech.

• Placement:  They’re no longer limited to just the top floor, but they’re always in the most desirable part of the building. 

• Cost:  What was once a premium is now a league of its own. With the growing demand for space, privacy, and prestige, penthouses often carry a high price tag in a development.

So, yes… a penthouse located on a lower floor is still a penthouse, because it’s more about its layout, privacy, and finishes than just the floor level. Some new developments, like Goldwynn, are taking it a step further, building entire residences as penthouse-only complexes.

A Penthouse Is an Apartment, But Not Just Any Apartment

While both are residential units in a building, a penthouse is all about elevation—in design, size, finishes, and lifestyle.

Apartments vary widely in quality and layout. They’re typically designed for everyday living, with standard amenities and shared spaces. You’ll find them throughout the building, often with neighbours on all sides and above.

Penthouses, on the other hand, are built to impress. Regardless of their placement, they offer more space, better views, private outdoor areas, and luxury features such as custom kitchens or private pools. 

They’re also more secluded, sometimes with private elevators or entrances. So, Penthouse vs. apartment: it’s not a matter of size; it’s the experience.

A Penthouse Can Be a Condo, but NOT All Condos Are Penthouses

A condo refers to the ownership style, rather than the layout or level of luxury. But condo vs. penthouse isn’t about ownership; it’s about status, space, and sophistication. 

Condos are individually owned units within a larger building or community. They come in a range of styles, from budget-friendly to high-end. Owners have access to amenities such as pools, gyms, and lobbies.

Penthouses that are condos still share common areas, but they usually stand apart with larger footprints, upscale finishes, and more privacy. 

In high-end Bahamas developments, such as Albany or The Reef, penthouses are the crown jewels, offering the best views and the most exclusive living experience.

But, Why Do People Like Penthouses So Much?

It’s definitely not just about being on the top floor, like we mentioned above. 

It’s about what that top floor lets you escape from. Loud neighbours, tight spaces, cookie-cutter layouts, crowded pools… a penthouse solves problems that regular units just can’t.

And in The Bahamas, where views, breezes, and peace of mind are priceless, a penthouse turns everyday living into an exquisite experience. 

Let’s look into what living in a penthouse really means!

No More Noisy Neighbours Above Or Beside You

One of the biggest pain points of apartment living? The constant noise. Whether it’s the neighbour upstairs pacing like they’re training for a marathon, or the one next door blasting late-night karaoke—it adds up.

Penthouses, whether they're on the top floor or not, are built differently. They’re often designed to limit shared walls, with extra soundproofing, buffer zones, or even dedicated wings or private elevator access that reduce hallway and stairwell traffic.

So even if you’re not at the very top, you still get peace and quiet, without feeling like you live in the middle of someone else's living room.

In buildings like The Reef or Thirty|Six on Paradise Island, penthouses are separated from standard units by entire floors or positioned in private corners of the building, minimising neighbour noise and maximising peace and quiet.

Explore real estate on Paradise Island

You Get Your Own Outdoor Space and It’s Actually Useful

A small balcony might work for one chair and a pot plant. But a penthouse terrace? That’s where life happens. You can host a dinner under the stars, lounge in the sun with a book, or take a dip in your private plunge pool. 

In The Bahamas, where the climate begs you to be outside, having that kind of space is a game-changer. It’s not just pretty, it’s practical.

Goldwynn penthouses offer rooftop terraces with ocean views, wet bars, and infinity pools. You won’t want to leave home, not even for the beach.

Explore real estate at Goldwynn

It Feels Like a House in the Sky

They’re spacious, airy, and often laid out like a proper single-family home. Some even go a step further, spreading across two or three floors, known as duplexes or triplexes. You get staircases, skylights, private libraries, media rooms, and bedrooms on separate levels. It’s like living in a luxury villa.

It’s ideal if you love to entertain or work from home. The layout allows you to separate work from rest, guests from private family space, and create a flow that is simply not possible in standard apartments.

The outdoor living spaces are equally impressive, featuring private pools, fire pits, and multiple seating areas, all with stunning ocean views.

At the Four Seasons Private Residences, the duplex penthouses redefine luxury living. Spanning over 7,000 square feet, these residences offer two levels of meticulously designed space, including multiple living areas, private bedrooms, and expansive terraces. The thoughtful separation of spaces provides the comfort and functionality of a standalone home, elevated high above the city.

Explore real estate options at Ocean Club Estates

The Finishes Are Actually Worth the Price Tag

You know how some units say “luxury” and then you walk in to find builder-grade cabinets and a stainless steel fridge from 2011?  

Not with penthouses. 

These homes are finished to impress, featuring custom woodwork, marble counters, high-end appliances, smart home systems, and spa-style bathrooms. Everything feels intentional.

At Albany, penthouse finishes are on a whole other level. We're talking handcrafted millwork, imported stone flooring, and kitchens outfitted with Wolf and Sub-Zero appliances—brands trusted by top chefs and luxury designers. Some interiors are curated by world-class designers who’ve styled for celebrities and luxury hotels. 

Explore real estate options in Albany 

So, Are Penthouses a Smart Investment Afterall?

If you’re still wondering whether a penthouse is just a luxury splurge or a solid real estate move, let me put it this way: It’s both.

When you invest in a penthouse, you’re not just buying square footage; you’re buying exclusivity, security, and long-term value. 

These properties hold their worth because 

• they’re rare, 

• they’re high in demand, 

• and they offer something you can’t replicate easily: space, privacy, and that intangible wow factor people pay a premium for.

In The Bahamas, the appeal is even stronger.

With limited land, high demand for luxury rentals, and a steady stream of international buyers, penthouses here are more than beautiful. They’re strategic. 

Many of our clients rent their penthouses when they’re not using them and earn strong seasonal returns, especially in high-profile buildings like The Reef or Goldwynn. Others choose to live in them full-time and enjoy a lifestyle most people only get a glimpse of on vacation.

And then there’s the peace of mind. Bahamian real estate offers:

• No property tax on undeveloped land

• Tax-free rental income for many foreign owners

• A stable government and legal system based on British law

• Year-round appeal for North American vacationers and remote workers

Plus, the Bahamas real estate market, especially the luxury segment, has shown steady appreciation. As inventory remains low and more developments focus on upscale living, the penthouse market is only getting stronger.

“The path to financial freedom begins with real estate,” as Peter Dupuch always says. “In real estate, number one, the property will appreciate, and two, you can earn income that’s essentially tax-free for Americans and Canadians.”

That’s what makes penthouses such a smart move here. A penthouse gives you a level of flexibility and prestige that few other properties can match, whether you’re going to use it as a home, a holiday retreat, or an income-producing asset.

At ERA Dupuch Real Estate, we’ve helped buyers and investors navigate the Bahamian market for over 30 years. We know which properties are priced right, which developments are up-and-coming, and how to make the numbers work for you.

Let’s find a penthouse that fits your lifestyle and your investment goals. We’re here to help whether you’re ready to buy or just starting to explore. Contact us today!

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What is a Penthouse: FAQs

1. Are penthouses easier to rent out as vacation properties?

Because of their exclusivity, private amenities like pools, and premium views, penthouses often attract higher rental rates and longer bookings.

2. Do penthouse layouts affect energy usage?

Private terraces, higher ceilings, and rooftop exposure can lead to increased cooling needs. High-end penthouses mitigate this with smart HVAC systems and superior insulation.

3. Are penthouse owners liable for shared building maintenance?

Yes, owners typically pay higher condo association fees to cover shared upkeep, insurance, elevator service, and exterior cleaning that serve penthouse units.

4. Does a penthouse guarantee future value appreciation?

Generally yes. Penthouse units hold better value due to scarcity and desirability, but ROI depends on market dynamics, building quality, and location trends.

5. What should buyers inspect specifically in a penthouse?

Focus on terrace waterproofing, roof-level drainage, noise insulation, elevator reliability, and rooftop mechanical systems—these are unique to penthouse units.

6. What is a penthouse premium?

A penthouse premium is the added value you pay for the best unit in the building, and it’s usually worth every penny. This premium reflects everything that makes a penthouse special. In The Bahamas, where penthouses tend to appreciate well and earn substantial rental income, you're not just paying more—you’re getting more.

7. Which areas in The Bahamas are best for buying a penthouse?

Top locations include Nassau, Paradise Island, and Exuma. Each offers a different lifestyle, from resort-style living to quiet, exclusive communities with marina or ocean views.