Such a tiny country – Monaco, the second smallest on earth after the Vatican – and yet with the most expensive property market in the world! Why? There are many reasons people want property to buy in Monaco, whether for residential purposes or investment.
Here are some of the reasons why apartments for sale in Monaco are among the highest priced when compared even with other very expensive cities/countries in the world.
Residential and Rental: Properties are available both for the people who would like to make this “country of dreams” their home and buyers looking for an investment. For families, the educational standards are of high quality. While those looking for residences need to have a larger, ready-to-operate property, investors looking to rent usually look for smaller apartments which may need refurbishing. There are many apartments for rent in Monaco to choose from. With the way the property market has remained resilient, the resale value for investors also looks good.
Location: More people want to live in Monaco, the reason for it also the most densely populated country in the world! With the Seaview on one side and the mountains on the other, the landscape is spectacular and offers a remarkable ambience. With more people wanting to enjoy the beauty of Monaco, a consequent rise in property values follows.
Tax benefits: The enticing climate is not the only reason for high property values. With no capital gains, income, inheritance, or property taxes, the enormous tax benefits are another attraction for the public to buy property in Monaco. There are some notary fees and a commission with value-added tax, with rental properties taxed 1% of the annual rent, but these are incomparable with the benefits. Hence, the property prices in Monaco have spiralled.
Demand vs Supply: The area available makes the demand far outcry the supply. This is another reason why prices remain so high. However, with the planned reclamation of another 15 acres of land from the sea and the construction of more apartments and villas, there will be more property available. Still, this will not result in lower prices, as the demand will continue to be high.
Safety and Security: The pandemic has made everyone more aware of the need for safety, good health and hygiene. These three priorities are available in Monaco. It has one of the largest police forces present, on both averages of per person and per area, offering the highest level of safety. The Healthcare system is very good, with businesses and employees contributing and Healthcare being available to Monegasque citizens as well as to those working legally there. It is environmentally friendly, and a large portion of this tiny Principality has been made into public and private parks and gardens. They are managed eco-responsibly, with the preservation of water resources, limited chemical treatments and the use of organic pest control systems. The stability of the environment is taken care of by testing the quality of air or water used for swimming. Noise control is also monitored. With this type of care, it is only “natural” that the real estate market will be expensive!
Acquisition of property: With no restrictions for foreigners, the sale of property in Monaco is not complicated. Two stages are necessary – signing the contract and, after the accuracy and confirmation of the terms of the agreement are verified by a public notary, completion of the transfer deed in the presence of the notary. Usually, a 10% deposit is paid at the time of signing the contract, which is held in escrow by the notary or real estate agent. This simple method of acquiring property is another reason which draws more buyers to Monaco.
Economic stability: The country has no debt, and the economically stable situation is another reason for property prices remaining high in Monaco.
Conclusion: With global demand for property in a tiny haven in one of the best locations, it is justifiable that real estate prices in Monaco are the most expensive. The return on property investment keeps increasing, making it more attractive for people to invest in property, no matter how high the price. Monaco has remained stable, despite the pandemic and, due to the instructions set down and followed diligently by the residents, it was one of the first to lift the lockdown restrictions. The real estate market in Monaco is also destined to remain resilient, with prices continuing to stay high.