The exception that is Monaco
The illustriousness of the Principality, located between the French towns of Cap d'Ail, Beausoleil, Roquebrune-Cap-Martin and La Turbie, is inversely proportional to its size. Its 32,500 residents share an area of less than 2 km2. A tiny territory worth its weight in gold.
The world’s second smallest state after the Vatican also ranks second after London in real-estate ratings drawn up by Knight Frank and Citi Private bank. The casinos, 4-star hotels, luxury boutiques and major names in gastronomy contribute to Monaco’s international reputation. The local economy is based on industry, trade, services, tourism and real estate. If foreigners, except for Americans and the French, enjoy tax advantages, they are not their first concern. In fact, investors are moving in with their families, enjoying a quality of life which is genuine, a rich cultural programme and proven safety. So many assets do not go unnoticed and the affluent jostle to cross the frontier. To meet demand, Monaco started to regain land from the sea back in the ’sixties by creating the harbour neighbourhood of Fontvieille. In 2003, a new harbour wall became home to parking lots, ferry terminals and commercial premises. Three years later, another major project was announced, whose first delivery is scheduled for 2014.
“Monaco is untouched by the crisis,” says Angela Kleiber, owner of the Lorenza von Stein agency. “At most, it has experienced a slight slowdown in activity compared to 2007.” The top end of the market is doing well : demand is strong, but owners are too greedy. Especially as they have the financial means to wait for a buyer willing to pay their price. Nationals of East European countries, particularly interested in a prestigious address, a sea view and a building’s up-to-date amenities, bring budgets ranging from 15 to 20 M € on average, exceptionally soaring to 100 M €.
More numerous but less affluent, the Anglo-Saxons, Scandinavians and North Europeans can spend from 10 to 12 M €. Fans of old bourgeois apartments, Italian buyers hardly ever disburse more than 5 M €. Demand mainly focuses on apartments with 5 or 6 main rooms. As witnessed by the popularity of the “Terrasses du Port”. According to the same estate-agent, a property’s value is based on a dual factor : the neighbourhood and the residence itself. The “Golden Square” tops the list. Currently, one has to pay between 70,000 and 80,000 €/m2 for an apartment in the “Park Palace”. A 1-bedroomed apartment in “Les Floralies” has just found a taker at 50,000 €/m2. On the same street, prices also vary depending on the floor, the visible surroundings and the appointments, sometimes creating very wide differences.
The success of Fontvieille has continued to grow over the past few years. More quiet than previously and with enough shops to suffice unto itself, it draws the interest of yacht-owners. An apartment in the famous “Seaside Plaza”, taking full advantage of the comings and goings of helicopters, will change hands for 40,000 €/m2, a price revised upwards if it faces south-west and downwards if it is on a lower floor. “Les Terrasses du Port” win all the votes from Russia and Scandinavia, followed by the “Eden Star” and “Le Grand Large”. Except for “La Réserve” and “Le 21 Princesse Grace”, the entire Larvotto neighbourhood is rented out, with a mind-boggling waiting-list.
“Port Hercule is also popular, but suffers from noise,” adds Barbara Quinti at the John Taylor agency. Due to the fact that they have two entrances, “Le Monte-Carlo Star” and “Porto Bello” are considered part of the Golden Square. One then investigates the western side of the Principality, magnificently represented by “Le Florestan”, “L’Atlantis”, “La Villa del Sol”, “Le Parc Saint-Roman” and “Le Monte-Carlo Sun”. Local residents and Italians opt for old apartment blocks in La Condamine or the neighbourhood near the Exotic Gardens. The latter may seem far from everything, but it enjoys a peaceful setting, plunging views of the Mediterranean, residences of recent construction and fast connections to the town centre by public elevator. “Le Garden House”, “Le Patio Palace” and “Le Ligure” top the list among all nationalities. Finally, the Rock of Monaco constitutes a world apart. Deprived of parking places, its residents have to be in good physical shape. Between 18,000 and 30,000 €/m2, a range similar to that observed up around the Exotic Gardens, prices depend on renovation and panoramic views encompassing Port Hercule or Fontvieille. Barbara Quinti attributes the slowdown more to the summer season, traditionally quiet, than to the world economy. In any case, with the autumn, the market is getting its skates on. Correctly priced apartments sell without delay. Penthouses and large surface areas in the Golden Square, often created by combining several smaller units, are priced way off the grid. And rentals are also putting on a very healthy show : an apartment of 350 m2 with 150 m2 of terraces will let for 40,000 € per month.
By Laetitia Rossi
