Why Some NYC Condos Appreciate FAST (While Others Sink)

When most buyers begin searching for a condo for sale in NYC, they focus on the obvious: sleek finishes, dramatic amenities, and that first impression you get when stepping into a lobby. But beneath the surface, the New York City luxury real estate market operates on rules many people never see, rules that can make or break anyone purchasing a condo as either a home or an investment property.

Two condos for sale in NYC can sit just steps apart in the same building, yet one climbs dramatically in value while the other quietly sinks. Understanding why this happens is the difference between buying a home… and buying a wealth-building asset.

In this guide, we’ll break down:

• What actually causes one NYC condominium to appreciate while another stagnates
  
  
• How to identify a unit that is positioned for long-term value
  
  
• Why some of the flashiest luxury condos NYC underperform over time
  
  

By the end, you’ll know how to pick a condo that doesn’t just look good on day one — it keeps getting better year after year, whether you’re considering Manhattan condos for sale, high rise condos, or even planning the steps to buying a condo in NYC as part of your broader investment strategy. 

A Wake Up Call From the Lower East Side

Let’s start with the moment that changed the way Undivided founder, Mukul Lalchandani, looked at NYC condos forever.

According to Mukul, “I was helping a buyer in the Lower East Side. Beautiful one-bedroom—exposed concrete, high ceilings, that downtown aesthetic everyone loves. Listed at $800,000. It felt like a steal.

But when we dug into the due diligence, we uncovered an $80,000 assessment. The reserves were drained. The board had made poor financial decisions. Banks wouldn’t even finance there anymore.

That’s when it hit me: appreciation isn’t about hype or design. It’s about financial health and long-term fundamentals.”

This moment transformed how Undivided evaluates condominiums in New York, and it’s why so many buyers unknowingly overpay for assets that deteriorate over time, especially first-time buyers who don’t yet understand the buying process, closing costs, or how board packages and financials influence value.

Why Two Units in the Same Manhattan Building Perform Differently

We’ve established that looks can be deceiving, and even two different units in the same building can have a very different long-term outlook. But what are the underlying factors that cause one unit to skyrocket and another to stagnate?

Below are the five fundamentals that determine whether an NYC condominium appreciates, holds steady, or loses value, regardless of how great it looks on day one.

1. Luxury Can’t Hide Weak Foundations

Stunning lobbies, imported stone, designer appliances, and other luxury finishes can make anyone fall in love. But they don’t protect you from:

• Sudden assessments
  
  
• High carrying costs
  
  
• Poor board management
  
  
• Dwindling reserves
  
  
• Financing restrictions

A well-run building with strong reserves holds value even when the market dips. A poorly managed one? It sinks — fast. This is true whether you're evaluating a condo for sale in Manhattan, a New York City penthouse for sale, or simply an apartment for sale in New York.

Here’s what to look for to determine if your NYC condo is a good investment: 

2. Neighborhood Momentum — Buy the Future, Not The Past

A unit’s appreciation is tied to the neighborhood’s trajectory, not just its current reputation. Location isn’t just a zip code; it’s a direction, and it’s central to answering questions like how much a condo in New York costs and how much condos appreciate per year.

Take Greenpoint, for example. In 2020, condos averaged about $1,100 per square foot. Today, they’re closer to $1,600.

Now look at Hell’s Kitchen. New buildings went up, but the neighborhood itself didn’t evolve much. Prices stayed flat.

Key Takeaway: You’re not just buying a home, you’re buying a trend line. And whether you're eyeing condos for sale in Manhattan, NYC, or exploring outer-borough investment opportunities, this principle is essential.

But even in a growing area, not every building (or unit) performs the same.

3. Building Strength & Management

A building’s health is like its immune system. 

Strong NYC Condo Buildings Have:

• Low monthlies
  
  
• Solid reserves
  
  
• Clean financial statements
  
  
• Proactive capital planning
  
  
• Straightforward financing approvals
  
  

Weak NYC Condo Buildings Have:

• High HOA fees with no explanation
  
  
• Constant assessments
  
  
• Difficulty securing financing
  
  
• Poor long-term planning
  
  

Case Study: One Billionaire’s Row

Take One57 on Billionaires’ Row. It launched the ultra-luxury wave, but because of high carrying costs, hotel operations, and tight financing rules, values have dropped over time. A valuable reminder that even luxury condos in New York City are known for can struggle when fundamentals aren’t aligned.

Key Takeaway: Prestige doesn’t guarantee performance.

And even within a strong building, not all condos are created equal.

Key Takeaway: Prestige doesn’t guarantee performance. 

4. The Unit: Details That Drive Value

Even in an exceptional building, not every unit performs the same. Some of the biggest drivers of value include:

• Layout Efficiency: Avoid long hallways and unusable corners and prioritize usable square footage. You can’t renovate your way out of a bad layout.
  
  
• Sunlight and Exposure: At 303 East 33rd, south-facing units sell for $100+ more per square foot than north-facing ones simply due to better natural light.
  
  
• Size & Proportion: Buyers value balance, including bedroom size, living room usability, storage, and flow. Efficient 700–800 sq ft 1BRs often outperform oversized layouts.
  
  

This applies whether you're comparing condos in New York, NY, condos for sale in New York City, or even evaluating whether luxury condos are a good investment from a strictly financial perspective.

Pro Tip: Don’t fall for the “developer closeout” deal. There’s usually a reason no one purchased the remaining discounted units earlier.

5. Amenities That Make Sense 

Buyers love amenities, but not all amenities make financial sense. In a big building with around 800 units, a pool, gym, and roof deck may be totally fine because the costs are shared and everyone pays a small percentage.

In a tiny 6-unit building? That same pool becomes a money pit. The same logic applies to outdoor space. If your terrace is double the size of your interior, you’re paying for square footage you’ll barely use half the year.

Red Flags to Avoid:

• Small boutique buildings with expensive features
  
  
• Oversized terraces that double the carrying costs
  
  
• Amenities that dramatically increase HOA fees without improving resale appeal
  
  

The best buildings balance lifestyle with sustainability. 

What Buyers Can Control (and What They Can’t)

Bottom line, you can’t control the market. But you can control the kind of asset you buy. But even with that knowledge, figuring out which buildings actually perform this way takes time, years of data, and analysis. That’s where Undivided can help…