The Principality of Monaco—Small but Mighty
Recently, Monaco real estate was found to be the most expensive in the world. The Principality of Monaco may be small in size (this independent state on the Cote d’Azur is only 2.02km²) but what it lacks in proportions, however, it more than makes up for with its slice of the global property pie. It’s without doubt one of the most sought-after property destinations on the planet, and demand is only rising. As we all know, increasing demand can set prices soaring to astronomical heights, so is now the perfect time to invest in the Principality of Monaco?
How the Property Market Sizes Up
One way to put the house prices in Monaco into context is to compare what you’d be able to purchase for the same money, in some of the world’s best-known property hotspots. We’ll use London and Hong Kong.
In 2016, the average property resale price for a home in Monaco was an eye watering €41,400 per square meter of space, marking a record price high for the Principality. If we compare this to Hong Kong, which has the second most expensive property market in the world by area, Monaco comes out at €2300 more expensive per square meter, easily trumping Hong Kong’s €39,100psm resale value for 2016.
Even more astonishing is that if we compare Monaco’s prices just to the most expensive borough in London in which to buy, Kensington and Chelsea, Monaco homes are getting on for double the cost. The average price per square meter in these famous London boroughs is £19,500 or approximately €21,956. In 2016, Monaco also enjoyed its greatest total property transaction value to date, with an impressive €2.7 billion worth changing hands.
What is it about Monaco?
There are a number of factors which influence the seemingly invincible, ever-growing real estate market value in Monaco, but the two most obvious include low taxes and a low rate of development. Monaco’s famously low taxes make it somewhat of a haven for luxury businesses and it attracts more than its fair share of UHNW individuals.
Demand-wise, as we’ve mentioned, Monaco itself is extremely small and its position on the cost of the French Riviera means it quite literally has little room to grow. There are few new housing developments in Monaco, which pushes the value of existing property ever higher, in contrast to cities such as London where new developments are common.
Finally, the Monégasque buyers are in the best position they could be in to be able to afford Monaco real estate, with one of the highest GDP averages in the world.
Featured Property in Monaco
As can be expected of the glamorous city-state, the Principality’s real estate is fittingly indulgent. This luxurious duplex penthouse called “Villa on Top” overlooks Monaco and the Mediterranean Sea with an air of majesty, comprising a total area of 510sqm. Decorated with stylish modern furniture and boasting a private swimming pool on the roof, the unique penthouse “Villa on Top” offers a rare opportunity for a family or an UHNWI buyer.
A high-tech home automation system ensures that the property’s residents are living a futuristic lifestyle, yet the property’s timeless style ensures this is done with elegance in the heart of the Principality. There is the potential for four bedrooms, meaning a versatile space, and the home is located close to many luxurious amenities. Purchasing any Monaco real estate opens a door to the high life!