Monaco : a world apart
The appreciable advantages of residing in the exclusive Principality.
Whether geographic, cultural or tax-related, the advantages of residing in the Principality justify the special characteristics of its market.
Over 32,000 inhabitants of all nationalities share a surface area of 1.9 km2. After reclaiming land from the sea (35,000 m2 for Le Portier in 1961, 54,000 m2 for the Larvotto two years later and 220,000 m2 for the neighbourhood of Fontvieille in 1971), this micro-state, surrounded by the French communes of Cap d’Ail, Beausoleil and Roquebrune-Cap Martin, pursued its development - vertically. One of the smallest Principalities in the world, it continues to draw a wealthy, cosmopolitan clientele.
According to Arash Shams of the Royal Riviera Immobilier agency, the Golden Square in front of the Casino, and the Saint-Roman neighbourhood close to the Tennis and Monte-Carlo Beach Clubs post prices ranging from 20,000 and 25,000 € per sq. metre. The Larvotto area, just a little lower and highly-prized by the English for holiday residences, is the ideal setting for family holidays. Port Hercule, popular among fans of yachting and car-racing, is sought-after by Greek and Italian buyers. One reckons on over 20,000 € per sq. metre for prestigious apartment blocks. Those who opt to settle permanently in the Principality choose Fontvieille with its international university, gardens and shops. They appreciate the sublime view of Cap d’Ail even if certain parts are a bit noisy. Prices here go from 15,000 to 25,000 € per sq. metre. Worth knowing : the Carrez Law does not apply to Monaco, so the surface areas indicated are in fact total surface areas, including storage rooms and terraces. Angela Kleiber from the Lorenza von Stein agency also points out that the market in Monaco certainly obeys the neighbourhood logic but also, and above all, that of individual buildings : magnificent complexes with swimming pools, gyms, guardians, even hotel service. In the Golden Square, one can cite La Villa Hermosa, Le Prince de Galle, Le Monte-Carlo Palace, Le Park Palace and Le Métropole ; in the Larvotto area, Le 21 Princesse Grace and La Réserve ; on Port Hercule, Le Porto Bello and Le Shangri-La ; at Saint-Roman, La Villa del Sol, Le Monte-Carlo Sun and Le Parc Saint-Roman ; and at Fontvieille, Le Seaside Plaza, L’Eden Star, Le Grand Large and Les Terrasses du Port.
The rental market follows the same trends. At the top end of the market, in the Golden Square, a 2-bedroomed apartment rents for 8,000 € per month, 3 bedrooms from 10,000 to 11,000 €, and a penthouse from 20,000 €. At Saint-Roman, expect to pay 7,000 € for the first, 10,000 € for the second and between 12,000 and 13,000 € for the third. At Fontvieille, prices start respectively at 7,000, 9,000 and 15,000 €. Finally, around the port, one will pay 5,000, 7,000 and over 10,000 €. One can however find rentals 50 % cheaper than those quoted above in more modest buildings. For acquisitions, price differences may attain 20 %.
The main change on the Monaco market has resulted from growing demand for large apartments. The penury which could arise due to this phenomenon is effectively countered by incredible mobility : people switch every two years versus seven years as reported in France. Sales arguments include security, the pleasant climate, the quality of infrastructures and, of course, tax benefits. A person whose main residence is the Principality is exonerated from paying tax on his income, investment profits and real estate. This, however, does not apply to French or American residents ; the latter have to pay tax wherever they happen to live. Bricks and mortar in the Principality also offer good returns : 4 % per year when the property is rented out, 7 to 10 % when resold. And while apartments were over-valued in the year 2000, the market has become more rational today. Six months suffice to sell. And people prefer new to old. Some developments like the Terrasses du Port are sold out on plans. For this type of acquisition, one now has to wait : the only apartment blocks under construction are the Pastor complexes in the Larvotto area, intended solely for rental, and those being built by the State which will come under Law 12035 (reserved for Monégasques and those who have lived in the Principality for over ten years and actually work there) and Law 887 (for those who have had an address in Monaco for more than five years and have been working there for over six months), both providing moderate rents. Estate agents say they are happy with the current situation. Though Sylvain Cohen of Draff Immobilier nevertheless regrets the lack of information put out on the advantages offered by Monaco, both present and future. There would be nothing to lose from providing investors with further reassurance.
By Laetitia Rossi - photos : Edith Andreotta
