May 22, 2018
To buy real estate in Monaco is to buy an apartment or property in the most coveted city in the world. It's official, Monaco has become the most expensive city on the planet.
The Principality has dethroned Hong Kong, the former titleholder. Here’s how.
First, the principal reason takes us back to our first econ classes like it was yesterday. The demand for real estate in Monaco is incredibly superior to the supply. The real estate market in Monaco fluctuates according to the supply. So it all depends on the amount of beautiful new real estate developments breaking ground.
In 2015, the number of sales boomed thanks to 3 very beautiful buildings: the Odeon Tower at the Annonciade, the Petite Afrique in Monte-Carlo, and Le Méridienin Fontvieille.
The first two offer very large and luxurious apartments and sublime duplexes, with record high prices. Le Méridien offers smaller but equally beautiful apartments, ranging from a studio to 2 or 3 rooms.
While watching the market, it’s necessary to be patient. Architects work very hard to supply Monaco with new high-end buildings that meet the expectations of a very demanding clientele. But despite the fantastic climate of the Riviera, buildings are not growing like weeds (they are much more beautiful anyway). There is only so much space in the Principality, at just 2.02 km2. Fortunately, architectural engineers have found solutions to build gigantic neighborhoods on the sea - we’re talking 6 hectares! Monaco is always one step ahead.
Secondly, a very affluent international clientele is interested in buying a principal residence on the Rock. British, Italians (neighbors), Scandinavians, and South Africans are all very represented in the Monegasque population. They are usually looking for an apartment or a villa in an idyllic setting, and a solution to their anxiety about how best to protect their fortune. They find the latter thanks to a very advantageous tax policy. Real estate prices are blazing, the average price in Monaco, per square meter, is 41,335 euros (in 2017), but living in Monacoallows buyers to benefit from non-negligible tax advantages. Potential buyers know that investing in real estate in Monaco is worth gold. In addition, the lack of direct taxation on real estate property favors a buyer’s market. The country’s economic and political stability only reinforces this enthusiasm.
Thirdly, the country benefits from the utmost security. Indeed, Monaco has a reputation for being one of the safest countries in the world. Prince Rainier has instituted the following rule: "Monaco must have total security." So he gave his kingdom the means to enforce harmony and a sweetness of life: 24-hour video surveillance system throughout the entire territory (on the streets and in buildings); an intensively trained police force; the possibility of blocking all access to the city in just a few minutes; and above all, the maximum sentences for even the smallest offense. These measures have proven to be a success, ensuring tranquility and happiness for all Monegasques.
Fourthly, the beautiful Mediterranean climate, mild in all seasons, allows the city-state to organize multiple international cultural and sporting events throughout the year. The beautiful sun gives the city a luminous glow, bring flowers to bloom on the streets and in green spaces.
Investing in Monaco is a sensible real estate investment, but above all, it’s an investment of pleasure.
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