A breath of optimism wafting over Monaco
Estate-agents look back over a buoyant 2015, underpinned by a European clientele appreciative of the high-quality living conditions, infrastructures and charm of the Principality, a hub for culture and entertainment basking in the Riviera sun.
A surface area of less than two sq. kilometres, shared by 36,000 residents of no less than 130 nationalities, and a cosmopolitan aura… 30 minutes from the Nice Côte d’Azur international airport, the world’s second smallest state (after the Vatican) does not merely content itself with offering its residents advantageous tax conditions. The reputation of its excellent schools, luxury hotels, restaurants, boutiques and cultural centres travels well beyond the borders of Monaco, which boasts the highest GNP per capita in the world. An art of living which has become a trademark, and a calendar of events to make the largest capitals pale with envy. The international press even credits the Principality with hosting the world’s most expensive apartment.
“The average price per sq. metre is said to be 37,900 €,” says Christian-Alexander Rosengart of Rosengart Luxury Real Estate Monaco. As soon as it comes with a prestigious address, a view of the Med and other intrinsic qualities, this price soars to 60,000 €. For rentals, one can expect to pay 81 € per sqm. per month. The rental market is in fact doing as well as that for sales, except that it suffers from a more limited number of availabilities. It is a springboard for acquisitions, allowing for a necessary test before taking the plunge. Back on the sales market, studios account for 10 % of transactions, 1-bedroomed apartments for 30 %, 2-bedroomed apartments for 32 %, and apartments with three or more bedrooms, 28 %. Monaco is popular among families wanting to live here year-round, attracted by its pleasant life-style, an especially desirable address in the South of France, known in particular for its international schools, but also its cultural agenda, Opera-House, Philharmonic Orchestra and Ballet Company. In addition to its tax benefits, Monaco’s political stability is appreciated by all.
“Activity in 2015 was a straight continuation of that seen in 2014, allowing us to look forward to a highly exhilarating vintage in 2016,” agree Eugenia Petrini and Luciana Lebon, co-manageresses and directors of La Costa Properties Monaco. Over the past few months, studios and 1-bedroomed apartments have found takers very easily, at prices registering a slight upturn. Clients from Italy, the UK, Belgium, Luxembourg, Germany and Switzerland readily envisage settling in the Principality, and the soundness and long-term stability of the investment end up by convincing them. One family recently decided to complete its assets by acquiring a villa of 600 m2 on four floors near the Jardin Exotique, an outstanding property facing the sea and Rock of Monaco. Another treated itself to an apartment of 300 m2 at the heart of the so-called Golden Square, a neighbourhood posting 50,000 € as its average price per sqm. Two more families rented very large apartments of 500 m2 and more, in Fontvieille. In luxury rentals, it is not rare to pay 30,000 to 50,000 € per month for surface areas ranging from 300 to 700 m2. Upcoming projects attest to the desire of builders to meet the requirements of an ever more demanding clientele, expecting top-notch luxury. Future developments in the Golden Square, like that of La Petite Afrique, bear witness to the Principality’s intention to position itself right at the top of the ladder. The eyes of real-estate professionals are also riveted on the long-awaited “extension” to be built out at sea.
“In Monaco, the price per sq. metre is meaningless,” says Laurent Locchi of Miells & Partners. “Unlike the market in France, this ratio follows no particular logic in terms of neighbourhoods, streets or even residences. Here, in one and the same building, two apartments with the same surface area can post prices 1 million euros apart, even if they are only one floor from each other. Each individual requirement is specific, each acquisition a matter of compromise.” More than anywhere else, this property market, not subject to the Loi Carrez, has to be visited extensively, learnt about in depth. It’s impossible to invest here on plans or by consulting a brochure. Living in the Principality is an art in itself, an apartment here an experience in its own right, involving layout, views and amenities. No one property is comparable to another. This buoyant market concerns all types and strata of clients, from private investors to companies, impressed by the micro-state’s business activity. Over the past few months, properties posting so-called starting-prices, ie. 20,000 to 22,000 € per sqm, have been changing hands at a rapid pace. Some of them are also disappearing from the traditional sales circuit, resulting in significant scarcity in agencies’ files.
