WHY IS MONACO REAL ESTATE MARKET SO ATTRACTIVE

Real estate in Monaco, a safe bet

If four investors had each bet $100 in December 2006 on one of the following asset classes; Monaco's real estate market, gold, US Treasuries and global equities, it is the one who would have bet on Monaco's real estate market that would have had the best return on investment today. Indeed, with a performance of 244% for Monaco's real estate market compared to 195% for gold, 160% for global equities and 107% for US Treasuries, it is by far the former that would have achieved the best performance.

Asset class performance since 2016

More stable over time than gold or global equities, the flattering performance of Monaco's real estate market highlights its function as a safe haven for HNWIs (High Net Worth Individuals) who have invested in one or more properties in Monaco.

With an average price per square meter of around $56,700 in 2020 compared to $ 57,800 in 2021, the attractiveness of Monaco's real estate market does not seem to have been impacted by the Covid-19 crisis. On the contrary, it is a safe bet that many HNWIs will come to invest in Monaco once the restrictions on international travel are lifted.

Indeed, in a context of rising inflation forecasts due to the global economic recovery and interest rates locked at historically low levels, it is attractive to invest in real estate in Monaco. Beyond inflation protection, such an investment offers the opportunity to earn additional income. Thus, unlike gold, for which you have to pay the costs of storage and/or cash placed in a bank account to which the bank will charge negative interest rates, a property in Monaco offers a positive rental yield of between 1.5% and 3.5% per year.

Safety and quality of life, the main advantages

In addition, if the coronavirus pandemic has not only had deleterious effects on our health; It has also been fatal for good neighbourly relations. In 2020, conflicts between neighbouring countries increased by 23% compared to the previous year, according to the legal protection insurance AXA-ARAG. And the upward trend is confirmed for 2021, as conflicts increased by about 30% in the first four months of the year. Thus, in this context of increasing global geopolitical tensions, Monaco represents more than ever a refuge guaranteeing its residents safety and an exceptional quality of life.

Monaco is appreciated for its quality of life, its soft taxation, the excellence of its hospitals, its international schools and universities, the beauty of its landscapes and for its economic and cultural dynamism. It is one of the safest and most secure places in the world, with a very low crime rate. The town, which has been frequented by the English nobility since the nineteenth century, has become over the years one of the most popular places on the French Riviera.

A dynamic and hyper-connected city

Beyond the cliché of a tourist town nestled between the Mediterranean Sea and the Alps. The Monegasque economy is hyper-connected to the world and diversified. Its financial, construction and scientific industries are particularly developed and many international groups have their head offices or major subsidiaries there. The immediate proximity to Nice International Airport makes it possible to reach Monaco in a few hours' flight from the main economic centres.

Proof of its dynamism, Monaco does not hesitate to embark on major construction projects to cope with the narrowness of its territory of about 2 km², the city has multiplied the construction sites to gain hectares on the water. The embankments built for the Larvotto beaches, the Fontvieille district and the extension of Port Hercule already represent more than 40 hectares, i.e. 20% of its territory. A new construction site is currently underway that will allow Monaco to gain an additional six hectares from the sea. This extension will house a future eco-district of five buildings and 14 villas, i.e. 60,000 m² of luxury housing that should come out of the water by 2020. This extraordinary project will include a small marina, with 18 moorings, as well as a saltwater swimming pool.

Beyond an exceptional living environment, Monaco is a popular destination for many HNWIs for many reasons. Investing in a property in Monaco is attractive and allows you to take advantage of the advantages that Monaco offers to its residents. If you would like to be accompanied in your installation in Monaco and in your acquisition of a property, do not hesitate to contact MONACO PROPERTIES. Our dynamic and international team will be able to assist you effectively in all stages of your project.