The most expensive real estate in the world - is it worth investing in Monaco?

The Principality of Monaco is a small city-state located on the Mediterranean coastline of France. Monaco's popularity initially sparked from the Monte Carlo casino. In recent years, it has grown into a multicultural, vibrant city-state. The real estate market in Monaco does not have to worry about potential buyers. Both private buyers and institutional investors are pushing the demand higher each year. The market is influenced by many factors and one of them is also the fact that the prices of apartments in this small principality have been going up for more than a decade. Currently, the Monaco property market has the highest prices per square meter in the world. The average price of an apartment exceeds 5 mln EUR. According to Monaco Estate demand for apartments often exceeds supply and this is why it is increasingly more difficult to find the right property without the assistance of a local estate agency in Monaco. Many sought after properties are discreetly marketed or sell very quickly once placed on the open market. Buyers wishing to acquire the right apartment or a villa should plan months in advance their purchases.

The real estate market growth in Monaco is fueled by HNWIs

It is widely known that Monaco is associated not only with no personal taxes but also with an attractive place to live. Monaco offers a mild Mediterranean climate, quality healthcare system, personal safety. Monaco is a yachting capital of the world, it draws many of the world’s yachting enthusiasts to its Monaco Yacht Club and the annual Monaco Yacht Show, which is one of the most prestigious events in the luxury. The local real estate markets benefit from a good manager and attractive place to live and therefore it continues to gain popularity among the wealthiest buyers. The growth of High Net Worth Individuals around the world fuels the demand for some of the most luxurious and most expensive apartment and penthouses in Monte-Carlo’s Golden Square and other prime locations in Monaco. Individuals and families from all over Europe as well as from around the world relocate to Monaco to enjoy the Mediterranean lifestyle and no personal income taxes. Due to the small size of Monaco, building new apartments is both challenging technically and time-consuming which contributes to the growth of property prices.

Monaco Residence Requirements

Obtaining a residence card in Monaco is a long process that May take a few months or longer. In addition to the detailed background checks, new residents must meet specific requirements in order to enjoy tax benefits. One of them is the requirement to buy or rent a property that meets the quality of local living standards for all members of the family wishing to relocate to Monaco. A small studio apartment may not be considered as a suitable apartment for a family with a child. Buyers should speak to estate agents for general guidance or seek professional legal assistance when buying a property in Monaco.