At the heart of the Principality
At Monaco, each square metre counts and arouses a cosmopolitan clientele.
The world’s smallest state after the Vatican set a world record in 2004 in terms of density. The town continues to grow – upwards ! Pursuing a policy of extensive construction, the authorities are also winning land back from the sea. Each square metre counts and arouses the interest of a cosmopolitan clientele, drawn by an incomparable quality of life and an enticing tax regime…
Angela Kleiber of the Lorenza von Stein agency moved to the Principality in the 1980’s. Over the past two decades, she has witnessed a real metamorphosis, allowing for the installation of over 110 nationalities. If people live well in Monaco, they owe it to the security system (Monaco is under 24-hour video surveillance and provides one policeman for every 100 inhabitants), the quality of the hotels, the cultural programme and excellent structures provided for hospitality. The International School is highly acclaimed. And the recently opened Monte-Carlo Bay is a hit with an ever younger and trendier clientele, often from the world of finance. The average age of property buyers is around 40. Many families with young children also own a villa as a holiday home, somewhere between Roquebrune-Cap-Martin and Saint-Tropez. Anglo-Saxons are still the best clients, closely followed by North Europeans and Russians. Monaco’s tax regime which, among other things, means no tax on income, capital or capital gains for residents, is still a weighty argument, not however extended to the French, as France signed a tax agreement with the Rock of Monaco. The very efficient banking system, the gentle climate and the “Côte d’Azur” effect (Monaco is only 30 minutes from Nice Airport) see that Monaco is pretty much unrivalled.
Its property market is very active. Demand outstrips supply and prices are still rising. Apartments from 1 to 2 million € are snapped up very quickly. Lucien Mostacci of the Park Agence also confirms the popularity of large apartments. The market, which is not affected by the “Loi Carrez”, targets personal use rather than investment, the opposite trend to that observed some ten years ago. The sector devoted to studio flats, rather turgid over the past few months, is picking up briskly in its luxury version. A studio costs 20,000 €/m2, like an enviable 2-roomed flat ; a quality 3-roomed apartment ranges from 22,000 to 25,000 €/m2, while a 4-roomed apartment costs 25,000 to 30,000 €/m2. The aura surrounding the “Golden Square” is not a myth and has led to an inevitable lack of offerings. A fine apartment in Les Floralies, at the Monte-Carlo Star, the Mirabeau or a penthouse at the Park Palace can come close on 35,000 €/m2. As an alternative, buyers often fall back on Le Parc Saint-Roman, La Villa del Sole, Le Monte-Carlo Sun or Le Florestan, apartment blocks situated at the eastern entrance Monaco. Fontvieille benefits from a better press than it did in the late ’nineties, thanks especially to its third phase corresponding to the building of the Seaside Plaza and Les Terrasses du Port. Top-notch examples in these two sectors attain 25,000 €/m2. Goli Amir-Ebrahimi of the Royal Riviera Immobilier agency points out : “Situated close to the Place du Casino, prices per sq. metre in older buildings start at 18,000 €, in new developments at 20,000 €. On the Boulevard d’Italie and Avenue Princesse Grace, very few apartments are up for sale, versus a considerable number offered for rent. Prices at Fontvieille start at 15,000 €. And finally, 12,000 € is the initial asking price in the area near the Exotic Gardens”.
Among current developments, this estate-agent mentions two apartment blocks intended for Monégasque residents. Prices at Le Domaine are closer to those on French soil. Lucien Mostacci also mentions L’Oiseau Bleu, an interesting building for several reasons : situated on the Rue de Belgique, it is 12 floors high, with about 20 apartments ; most of them over 350 m2. The first price brackets range from 17,000 to 30,000 €/m2. Finally, buyers are waiting for a complex in the Golden Square. “The entrance ticket will be something around 30,000 €/m2,” says the owner of the Park Agence. The most significant new factors are likely to result from plans to build on the sea. One hears about 250,000 m2, 40 % dedicated to accommodation including a large share for the private sector.
The history of the Principality is indissociable from the penthouse phenomenon. Every apartment block is crowned by a “villa sur le toit” with garden and sometimes a pool. Amongst the ones currently for sale, one finds a spacious apartment prolonged by a magnificently landscaped roof-terrace at 18.5 million € in Les Terrasses du Port, another also at Fontvieille offering 1,200 m2 at 25 million €, a third of 500 m2 overlooking Port Hercule at 13 million €, and another of over 485 m2 at the eastern end of Monaco priced between 20 and 22 million €. In the intermediary category, an apartment of 350 m2 is available at 5,950,000 €.
Despite the high levels of prices, speculation still exists in Monaco. Apartments ready to move into top the list. “Foreign buyers prefer by far to pay a little more than to launch themselves into colossal renovation work,” explains Angela Kleiber. The contemporary urban style with clean white spaces, lovely high ceilings and wengé floors is much appreciated.
“As for rentals, the market is also showing clear signs of saturation,” reveals Lucien Mostacci. In 2004, the agency handled six large apartments in Les Terrasses du Port ; they all found takers in record time. For a sublime apartment with 5/6 main rooms, expect to pay 15,000 € per month, from 10,000 € for an equally comfortable 3-bedroomed flat, 4,000 to 8,000 € for a 2-bedroomed flat, 2,500-4,500 € for a 1-bedroomed flat, 1,500-2,000 € for a studio flat of the same type.
Decidedly, the Principality has no equivalent anywhere else in Europe. It has achieved the perfect combination of an idyllic location, go-ahead business activities and an enviable life-style.
By Laetitia Rossi - Photos Edith Andreotta
