Real estate in Monaco: advantages of buying

Tiny Monaco is one of the smallest countries that is very densely populated. The fairy tale story of Hollywood actress Grace Kelly, who became a princess by marrying local ruler Renier Grimaldi, Monte Carlo casinos and the Monaco Grand Prix Formula 1 championship round, created almost eternal glory for these parts.

At one time, the Principality received additional publicity in the media as a result of the investment activities of the Greek magnate Aristotle Onassis, which gave a significant acceleration to the economy due to the expansion of the territory of the Principality, the construction of a port and the entertainment industry.

Unfading laurels of the principality

It is not surprising that subsequently famous and successful people from various fields of activity began not only to relax here (especially since Monaco is part of the Cote d'Azur), but also to purchase real estate. And today the economy of the Principality is developing due to the construction of luxury housing, tourism, gambling and media popularity thanks to the rich life of the Grimaldi clan.

Real estate in Monaco today is considered one of the most expensive in the world, since the average price per square meter has almost doubled in the last ten years, so the Principality can compete with cities such as New York and London. At the same time, the amounts spent on real estate in Monaco increased by 400%.

In terms of the cost per square meter of housing, Monaco today is a strong competitor to Hong Kong - one of the largest world capitals with the attraction of significant Asian capital, offices of high-tech companies.

Trends in the real estate market in Monaco

Experts note that over the past years, the annual volume of transactions in Monaco has not changed significantly. In the current 2019, a slight decrease in the total number of requests was recorded, however, all incoming requests are from “hot buyers” who are serious about buying. Demand was also affected by the fact that wealthy Russians are now more pragmatic about buying expensive real estate and make a purchase in case of real need.

The most significant factors that influenced the success of this small state on the world stage were Monaco's high level of security and tax advantages. For clients from European countries and a number of other countries, the most attractive reason for buying a home is the absence of income tax.

Today, when buying a property in Monaco, you can apply for a residence permit and receive tax benefits - no income tax, property tax and capital gains tax on the resale of property.

Over the past few years, more and more couples with children have moved to Monaco, rather than bachelors, which also indicates that living in the territory of the principality is not only a beautiful picture, but also a reality. At the International School of Monaco, enrollment has quadrupled since it opened in 1994.

The population of the Principality is now a variety of residents from different countries, mainly from Europe, since the process of obtaining Monaco residency for EU representatives is much simpler than for others. In second place after Europeans are immigrants from Eastern Europe and the Middle East.

Demanded areas

The most demanded area is still Carre d'Or - "Golden Square", where the highest real estate prices have always been recorded. It is located in the heart of Monte Carlo near the gardens opposite the Casino of the same name and the Casino gardens. The neighborhood of Carr d'Or is lavishly filled with luxury residential real estate, shops, luxury hotels, restaurants and private banks.

The Fontieille area is also very popular, where families with children most often purchase housing. This is the new southern district of Monaco, which was landscaped in the 1990s. Fontieille is also known as a residential area and business center, where it successfully combines apartment buildings, green spaces and promenades along the coast.

Price policy

Last year, the average price per square meter reached 48,799 euros. The most common requirements for real estate when buying are the presence of a sea view and an average area of about 100 sq.m. The greatest demand is for residential real estate in the price range from 5 to 20 million euros.

Two-bedroom apartments with a sea view with an area of 80-120 sq.m are highly demanded among the properties. There are other offers on the market, but certainly extreme values are extremely rare in Monaco, and the quality of properties at the bottom and top of the price range is drastically different. The cost of small studios starts from about 1 million euros.

Benefits for homeowner in Monaco

Buying property in Monaco allows the owner to apply for a residence permit and, accordingly, tax residency, which is extremely beneficial, since there is no personal income tax on the territory of the principality, as well as taxes on capital gains and gift.

Residents of Monaco (persons with the official status of a residence permit or permanent residence) and spending more than 183 days a year in the territory, pay income tax at a rate of 0%. Property tax is also 0%. This is extremely beneficial for people who receive significant personal income - artists, tennis players, owners of large international companies. For them, buying a property in Monaco is not a waste, but a savings. Thanks to these factors, the demand for real estate in Monaco remains colossal and the cost of housing increases by 5-8% per year.

Thank you for your help in preparing the material:

Elena Nevskaya, expert consultant of ADRIONIKA

Alina Aleshina, Deputy Head of Overseas Real Estate Department, EVANS

Anna Andreeva, Senior Consultant, Overseas Property Department, Knight Frank