Monaco : positive indicators
Almost 20 km separate Monaco from Nice. Surrounded by Cap d’Ail, Beausoleil, Roquebrune-Cap-Martin and La Turbie, the Principality is showing strong signs of recovery. 21.5 % of its 35,900 residents are Monégasques (Monaco nationals), a portion of the population followed by the French, Italians, British and 140 other nationalities. Monaco can lay claim to all kinds of records.
Occupying an area of 1,974 km2, it is the world’s smallest state after the Vatican, has the highest density in terms of population and the highest GNP per capita. A result which may be questionable, given the 30,000-40,0000 people who come to work in the Principality every day and who should probably be included in the calculations. The rankings drawn up by Knight Frank and Citi Private Bank in 2007 designated Monaco as the world’s second most expensive city after London. Over the years, the Principality, governed by one of the world’s oldest ruling families, has won back about 100 acres of land from the Mediterranean Sea. In 2003, the building of a dyke provided 360 parking places, a further surface area of 25,000 m2 for storage purposes, two maritime terminals, public office space and shop premises. Five years later, HSH Prince Albert II set his seal to a tender for projects for the creation of about 25 acres of new space. About 24 months later, the idea was abandoned for ecological reasons, although the global financial crisis probably had something to do with this sudden about-turn. To replace the project, the Principality decided to build the double Odéon tower, 49 storeys high, reverting to the Principality’s tradition of vertical development. The micro-state makes its living from the service sector, VAT, commerce and real estate. Relying on an array of exclusive hotels, its tourist industry, naturally focusing on the luxury segment, is doing well. Somewhat unexpectedly, there is still some industrial activity in Monaco, though it only provides employment for less than 3,800 people.
“Some neighbourhoods are more sought-after than others, a fact even more noticeable within a tense business context,” says Trevor Gabriel of Monaco Villas. The “Golden Square” around the Place du Casino always tops the list. In the prestigious residences Le Park Palace et Les Floralies, the sq. metre ranges from 40,000 to 50,000 €, while older buildings providing more basic accommodation cost on average around 30,000 €/m2. The part of Fontvieille that faces south and towards Cap d’Ail is also highly prized. While some blocks of apartments are reserved for Monégasque nationals, the Seaside Plaza, Palazzo Leonardo and Terrasses du Port offer generous surface areas priced from 40,000 to 45,000 €/m2 for upper floors. Residents do not mind being close to the heli-port : some apartments, particularly well designed, even offer quadruple glazing ! Pegged at around 35,000-40,000 €/m2, the Larvotto neigh-bourhood is a notch lower in the popularity stakes.
The sea view is panoramic, the locality less built-up and the residences modern. Other areas, the Jardin Exotique, Condamine and Rock of Monaco, contrib-ute to a relatively homogeneous market ranging from 20,000 to 30,000 €/m2, except for a handful of specific residences. The volume of business is currently lower than that observed in the same period last year, though there are lots of serious enquiries, especially for office space and rentals, both regarded as antechambers to the residential sector. In terms of transactions, the top end of the market is keeping its head above water. Russian, British, North European and Middle Eastern clients show real enthusiasm for the small but very prestigious Principality, with Asians now daring to make their first requests for information.
“Despite the crisis, prices of top-quality properties have remained unchanged,” comment Eugenia Petrini and Luciana Lebon of La Costa Properties Monaco. “The slowest period already dates back to 2009. Since then, the trend has been towards improvement with some very fair sailing in the case of rentals.” Les Floralies, Le Mirabeau, the upper floors of the Park Palace and Porto Bello lead the field, with buyers looking for outstanding appointments and a view of the Med as their top priorities. The most recent transactions, both sales and rentals, mainly involve families wanting to live in the Principality, a place regarded worldwide as enjoying a stable political and economic regime. The tax aspect is naturally of importance, though these clients also appreciate the security, climate and general life-style. Situated in the centre of Europe, this little state with its train station and proxim-ity to the Nice Côte d’Azur International Airport provides excellent transport facilities. This type of buyer is ready to pay from 3 to 5 million euros for a home, whereas East Europeans, more drawn by entire floors of 300-400 m2 (including terraces), are prepared to invest 40,000-50,000 €/m2. Making a comeback in 2011, rental investors are willing to pay from 19,000 to 26,000 €/m2 for studios or 1-bedroom apartments opening out to the sea. Our estate-agents say they are fully confident in the future, convinced that it will soon bring new clienteles from more distant lands, and encouraged by the proliferation of new building sites which will enrich and diversify the existing stock of properties on their files. “The “Golden Square” is seen as a safe haven, with very wide price differences attaining over 30,000 €/m2 with peaks beyond 50,000 €/m2 in Le Mirabeau,” adds Elodie Blanc-Sardi of Miells & Partners. The other side of Fontvieille, turned towards the harbour, the Rock of Monaco and the Palace, also has more than one string to its bow. Starting with apartment buildings as highly-prized as the Eden Star and Grand Large. Interested parties have to accept that Monaco, renowned for its urbanization and density, almost inevitably suffers from noise. The most recent sales orchestrated by this agency, testifying to a very broad range of products, are very encouraging. With substantial budgets, East Europeans are strengthening their positions in the Principality. Tradition-al buyers from Northern Europe, recently joined by a few Italians, still find the destination very appealing. Finally, historic clients of Miells & Partners, all residents, are beginning to invest again, intending to take advantage of lower prices posted by mid-range properties which, in 2007, were well beyond their financial capabilities. Pursuing a healthy approach of asset-building, the very opposite of speculation in the pre-crisis era, they look upon real-estate in Monaco as a reassuring alternative to investments in bank instruments or the stock market.
By Laetitia Rossi
