Nevertheless, the local real estate market is more lucrative than ever before. According to the Statistical Authority of the Principality (IMSEE), construction and brokerage operations each account for about 10% of GDP.
Nowhere is the purchase price per square metre higher than in the small Principality. For years, demand for real estate has been higher than supply. The city state is about as large as a quarter in major European cities and is constantly looking for new areas.
No Income Tax and Location on the Sea Coast
Firstly, the country is popular for its generous tax policy. No income tax is charged here, so you can invest a lot. The beautiful area makes making choices about establishments much easier. Especially in Monte Carlo and La Condamine, these are the most sought-after areas. The demand for real estate is considerable, especially during events such as the Grand Prix of Monaco, which attracts thousands of tourists every year.
Buyers in Monaco have to pay an average of 50,000 euros per square meter. According to IMSEE, the Principality’s real estate market was more lucrative than ever in the first quarter of 2023. For new buildings, twelve sales were recorded in the first three months of the year, twice as much as in the previous year. The total amount is more than 400 million euros.
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The most expensive apartment in Monaco is the 3,300-square-metre penthouse of the Tour Odéon complex on the cliff slope, with a swimming pool and a private water slide on the roof. The price is 300 million euros.
In the Principality, strict rules of residence and banking offices apply when buying real estate. You must either open a bank account with a local bank or be a resident of Monaco in order to buy real estate there.
The Sea had to retreat
Monaco is creating the most expensive residential area in the world. The Mareterra, in translation “sea and land”, is expected to be finished by the end of 2024. The new district was built by the sea; among other things, six hectares have been cut off, which is approximately the area of eight football fields. The extravagance catches with hundreds of pines, oaks, and olive trees grown in Tuscany. Artificial lake with seawater, which was eventually filled with sand.
The enlargement alone cost well over a billion euros, and the construction costs for the quarter are estimated at at least another one billion euros. On October 30, 2020, the builders handed over the new land to Prince Albert II, who enlarged the territory of Monaco by 3%. Monaco’s luxury project promotes sustainability: part of the electricity will come from solar panels on the roofs instead of being heated with gas by marine thermal power plants. The neighbourhood will be open to the public; cars are not allowed, at least on the upper ground. Residents will be able to reach the parking lots of their exclusive accommodations via an underground road.
Monaco has the highest UHNWIs Density in the World
The main building of the new neighborhood, which overlooks the marina of Mareterra, was designed by the Italian star architect Renzo Piano. In addition to some 110 apartments in several high-rise buildings, ten luxury villas are also built, among whose architects is the British Norman Foster. The smallest residential unit in the neighbourhood has an area of 400 square metres. Almost all the apartments and townhouses are already sold.
Since the beginning of the 20th century, a total of more than 40 hectares, or about 20% of the territory, have been gained through several expansions. More and more space is needed in Monaco. Measured by population density, more UHNWI have made Monaco their home than anywhere else in the world. According to a new report by Altrata, the London-based data company, one in 39 homeowners is classified as UHNWI.
