A Monaco real estate investment offers interesting opportunities in a country where demand, driven by ultra high net worth individuals, greatly exceeds supply.
High prices and a lack of space for new-builds
Property prices in Monaco are the highest in the world, with buyers paying an average of 41,300 euros per square metre in 2017. Monaco has a surface area of 2.02km2, having gained additional space in the 1970s through a land reclamation project. One of the new projects, which is due for completion in 2025, will create more than six hectares of residential and public space on what is now the Mediterranean Sea. However, this will not significantly redress the imbalance between supply and demand, which is good news for investors.
Finding Monaco real estate investment opportunities
Property does not stay on the market long or is not even put on the market: many transactions take place off-market. Certain types of property make particularly good investments. With such little land to build on, Monaco has logically chosen to build vertically, meaning villas are rare and highly sought after. Properties with sea views or near Larvotto beaches will always be in demand and an apartment in a neighbourhood where there is no likelihood of a new-build blocking the view also represents a valuable Monaco real estate investment.
The tax system
One of the reasons why people opt to make a Monaco real estate investment is the favourable tax system. With the exception of French nationals, residents have not paid personal income tax since 1870. There is no wealth tax, annual property tax or council tax. In addition, no inheritance tax is levied on property transferred between immediate family members.
A safe environment in a beautiful location
Residents appreciate living in a place where they feel safe. Monaco has a very low crime rate and a strong police presence, with one police officer per 100 residents. A video surveillance system operates 24/7 across the entire Principality and many apartment buildings have their own video surveillance. Monaco enjoys 300 days of sunshine per year and its geographical location gives residents plenty of opportunities to explore France and Italy. The city-state’s proximity to Nice airport is another important asset.