Monaco’s low taxes and appealing living environment has made it a centre of global wealth over the years. The world’s smecond smallest independent state, though, is also located in Europe, which caused its typically expensive prices to become more affordable.
Average prices remained static in 2014, which, combined with exchange rates, meant that a €2m property cost US dollar buyers $2.16m in April 2015, down from $2.77m a year earlier. The €2m property to a British sterling buyer cost £1.44m in April 2015, compared to £1.65m.
As a result, the number of residential sales exceeded their 2007 peak for the first time in 2014, with transactions totalling a combined value of €2.4 billion. This is 91 per cent higher than the previous peak, which totalled €1.1 billion.
“Constrained land supply means newly built property is extremely rare and at a premium so only the ultra prime market and the world’s wealthiest are now catered for in the Principality,” says Savills’ latest report.
To classify Monaco solely as another world-class urban conurbation, though, misses the point, argues the consultancy: Monaco has a unique position as a hybrid centre that incorporates not only commerce and ultra-wealth in a low-tax
jurisdiction but also a Mediterranean playground for the world’s wealthy.
Only Macau is close to offering a similar range of attractions as Europe’s leading hub of gambling, yachting and motor sports.
“The unique offering of Monaco’s global appeal and its extremely limited land supply will all combine to keep Monaco’s real estate prices high with few or no mechanisms for them to fall,” forecasts Savills. “We anticipate they are at, or near, a high plateau, in common with many other ultra prime markets globally and will be for some time to come.”