The Monaco real estate and construction sectors are responsible for a 9.3% increase in the principality’s GDP according to recent reports by the Monegasque institute of statistics and economic studies (IMSEE).
The report reveals a rise in GDP from €4.48 billion the previous year to an estimated €4.94 billion in 2013. A third of this total is provided by two sectors: technological and scientific activities, and finance and insurance. However, real estate is now the principality’s third biggest contributor.
Government subsidies have decreased by 6.1%, subsequently incentivising more and more people to buy property in Monaco. As a result, the real estate sector has gradually experienced an increase of 21.3%. Likewise, the construction sector enjoyed a successful year, seeing a 16.4% rise.
2013 was clearly a productive year for the principality, with overall earnings of the employed rising by 3.9% as a consequence of a 12% rise in overall wealth.
There is more good news for Monaco, after a further €12 million was added to the budget at the end of 2013. This means that not only is Monaco now in a more stable and stronger economic position than it was before the economic crisis of 2008 but also the country is yet to have experienced debt.
Meanwhile the rest of Europe continues to languish behind with a decrease of 0.4% experienced across the Eurozone. Coincidentally, Monaco is currently benefitting from a luxury-housing boom as the market is seeing a resurgence of millionaires searching for more stable economic climates. Europe’s super-rich are also pre-occupied with trying to escape higher taxes and a loss of banking privacy in the continent’s other major cities. In particular, Monaco is experiencing an influx of wealthy residents from Switzerland where “financial secrecy laws are crumbling”, from London where new levies on luxury homes are beginning to have an impact and even from the US where Obama continues to tighten restrictions on hiding assets.
With these latest GDP figures, Monaco is becoming an increasingly attractive destination for property seekers and, since the rest of Europe experiences further restrictive measures, there has rarely been a better time to consider purchasing or renting a property in Monaco.