Should You Buy or Rent an Apartment in Monaco?
Monaco, with its lavish lifestyle and breathtaking surroundings, presents a unique choice for individuals considering whether to buy or rent property. Both options come with their own set of considerations, and this article delves into the factors to keep in mind when making this significant decision.
Renting an apartment in Monaco
In Monaco, real estate agencies play a pivotal role in the property market. While private sales and rentals are feasible, it's common for landlords and property owners to entrust their properties to these agencies. Rental contracts in Monaco typically span a year or more, with the option to renew.
For tenants, the initial payment can be substantial, often equating to approximately six months' worth of rent. This includes a quarter's rent upfront, a deposit, a lease registration fee of 1% plus the real estate agency commision. Rent is typically paid in advance every three months, and additional service charges may apply.
To secure a rental property in Monaco, prospective tenants must provide certain documentation, including a bank statement, proof of income, or a new employment contract.
Given the high demand and limited supply in the principality, landlords can be selective. Monaco's rental prices vary, with a modest studio costing around €1,800 per month and luxury one-bedroom apartments reaching up to €7,000 monthly. Pricing depends on factors such as the property's location, quality of fixtures and fittings, and available amenities.
Buying an apartment in Monaco
Owning a property in Monaco, while a desirable goal, often comes with a substantial price tag. Studio apartments can easily sell for €1.5 million, and properties with sea views command even higher prices. Larger apartments, featuring four to five bedrooms, range from 17€ million to an astonishing €80 million, typically attracting only the super high net worth individuals.
Rent or Buy: The Final Decision
The choice between renting and buying ultimately boils down to one key factor: finances. Monaco's real estate market caters to a select few, making ownership a pursuit primarily for super high net worth individuals, tax benefits, or those looking for sound property investments with the potential for secure appreciation.
Best Places to Consider
If you find yourself in the position to buy property in Monaco, consider these sought-after areas:
Carre d’Or: Known for its luxurious boutiques, the casino, and renowned hotels like the Hermitage and Metropole, this area exudes prestige and glamour.
Larvotto: Located in the east of Monaco, this area boasts the rejuvenated Larvotto public beach, offering sunbathers and swimmers a slice of paradise.
Jardin Exotique: Nestled in the hills northwest of Monaco, this beautiful botanical garden offers unparalleled views of the Mediterranean Sea and Monte Carlo.
Fontvielle: The southernmost location in Monaco, this area was developed to combat space constraints in the principality, offering stunning harbor views and attracting famous residents.
Quartier Saint Roman: With white sandy beaches and the renowned Monte Carlo beach club, this area is a hotspot for shopping and dining, making it a prime choice for many.
Can a Foreigner Buy Property in Monaco?
Monaco welcomes foreign buyers without any restrictions. To ensure a smooth purchase, you'll need the services of a public notary to ensure the contract adheres to the law. Property transactions can be swiftly concluded in one to two months.
Costs of Buying an Apartment in Monaco
While property prices in Monaco are high, the costs associated with buying property are also substantial. Buyers typically face Registration Tax, Notary fees, and a portion of the agency fees. A portion of the estate agency fees is covered by the vendor. Overall, buyers can expect additional costs representing approximately 9.5% to 13.5% of the property's cost, while vendors should anticipate around 6% in costs.
Newbuild Property in Monaco
Monaco's real estate landscape offers a range of newbuild developments, particularly in areas like Portier Cove and Carre d’Or. These include high-end apartments, townhouses, and villas, with square meter prices reaching more than €100,000.
Some of the notable newbuild developments in Monaco include One Monte-Carlo and Testimonio 2, offering a five-star living experience.
Monaco continues to evolve, providing new opportunities for those seeking to live in this extraordinary principality.
For further information, please contact MONACO PROPERTIES:
Tel. +377 97 97 33 97
Whatsapp : +33 6 40 62 65 76
Email: info@mpmonaco.com
