The Monegasque Property Market
It’s widely known that the wealth of luxury real estate in Monaco attracts the most affluent buyers from all over the world. There’s certainly no sign that this is set to change in the near future, as the region has so much to attract the super wealthy and those accustomed to the most luxurious of lifestyles. A centre of commerce and offering everything even the most discerning of clients could ask for in terms of work and play, it’s earned solid status as a world-class property hotspot.
However, there has been a slight change in the trend recently, showing that more buyers from a younger demographic are choosing to buy in Monaco. And, not only are they buying, but they are making it their home, rather than a vacation destination (although clients are still likely to own properties all over the world). The relatively low tax levels are likely to be partly responsible for this trend – despite residential property in Monaco being the world’s most expensive (average prices reached €41,400psm in 2016, knocking Hong Kong off the top spot).
A Safe Haven
Because of its reputation as a safe haven, Monaco is still continuing to attract buyers from countries which are seen as less politically or financially stable. This brings buyers from all corners of the earth, but in recent times it has brought overseas interest from Russia, the Middle East, and South Africa in particular. The ongoing political uncertainty concerning the status of non-domiciled UK residents also has the potential to increase property demand in the state.
A Solid Investment
The trend for ever higher prices in Monaco has continued into 2017, which Monaco real estate agency specialists have attributed to the slowing down of new construction, creating a shortage in relation to the high demand. This has sent average prices soaring, with the average home being resold for an impressive €4.7 million last year and €5.8 million in the most popular housing territories. In the past decade alone, the average house price has risen by 180%, and this upward trend shows no sign of a reversal. Last year, a mere 6% of the resold homes were newly constructed properties, which certainly illustrates the shortage of new property developments.
Younger Buyers Prefer Newer Buildings
This may have caused the market to slow down over the past 6 months or so. The demographic of young, affluent buyers wishing to purchase in Monaco are drawn towards newer buildings which do not require the same level of refurbishment as older constructions. However selective the clientele, however, the market is unlikely to slow down too significantly as the demand for properties in Monaco is still so high – buyers will take on a project requiring slightly more maintenance if necessary.
Video credit: jonathan vandamme
A Market Ruled by Apartments
The market in Monaco continues to be dominated by apartments, with relatively few independent villas available – unsurprising given its comparatively tiny size! Nearly a quarter of the property sales in Monaco which have taken place since 2013 have been three-room apartments. The near future is certainly looking bright for the property market, which continually attracts increasing numbers of UHNWI’s craving its uniquely dazzling lifestyle.
A Luxury Apartment near the Monte Carlo Casino
Available for €14,000,000, this spectacular apartment is set in the Mirabeau – a desirable building in the heart of Monaco. With the Monte Carlo Casino just moments away, the 3-roomed property is within reach of many local amenities, including restaurants, the Metropole Shopping Centre and Larvotto Beach. The apartment’s 14m2 terrace provides panoramic views of the Mediterranean Sea, offering the perfect spot for al fresco dining and an evening cocktail. Other special features include a concierge reception, a large heated swimming pool and a fitness suite in the building, air conditioning throughout and 24-hour security.