MONACO- The Billionaires’ Playground

In the lap of luxury, you find Monaco; a hub for the world’s super-rich notorious for its flamboyant lifestyle.

At the heels of France, Monaco sits gracefully basking in the euphoria of extravagance. The principality of Monaco is the second smallest country in the world and it is known to be the wealthiest and most expensive place on earth. Being an international intrigue, she has continued to cater to the vanity cravings of the rich and has been nicknamed the ‘billionaires playground.

‘ Monaco has top-tier global cities posing as a great hub for high net-worth individuals, an international business centre and a world-class holiday destination. Monaco is perhaps best known to visitors for its Monaco Yacht Show, Monaco Grand Prix and casinos.

As a net importer of labour and home to 139 nationalities, Monaco usually has a high demand for all types of real estate offering. In 2017, residential retail prices rose by 6% due to this high demand. The average price for residential properties is about €41,300 per square metre which is 13% above Hong Kong. In 2018, Monaco stood tall beyond expectation and when other premium locations would flounder, she was able to excel. Although, tourism is one of the main drives of the Monégasques economy, the real estate sector contributes about 10%.

According to Savills report, Monaco has the most expensive residential real estate market in the world, followed by Hong Kong.

Irene Luke, a partner in Savills’s Monaco office has attributed the hike to the lack of new construction in Monaco. Another advantage Monaco has is the low taxes which attracts buyers, because it is perceived as a more stable environment. No capital gains, no income tax, no property tax! Monaco has seen the likes of foreign buyers from the Middle East, South Africa and Russia as well.

“Monaco has top-tier global cities posing as a great hub for high net-worth individuals, an international business centre and a world-class holiday destination.”

WHERE TO INVEST IN MONACO

Fontvieille: On the southern edge of Monaco is an area with abundant green spaces known as Fontvieille. The Fontvieille park is one of the most visited places because it puts its visitors on a journey of discovery. The artistic wonders here are endless. Fontvieille has a plethora of family homes and could be a perfect place to invest. According to a report by the New York Times, a one-bedroom apartment on the waterfront in Monaco is about €7.4m. On average, a property goes for €42,600 per square metre and the resale price goes for €4,176,000. In 10 years, the price has been projected to grow up to 124%.

Jardin Exotique: Remarkable for having an ever-active real estate market, Jardin Exotique has abundant real estate options for sale and rent. This unique area is located in the southwestern area of the country and offers an unparalleled view of the mediterranean sea. The average price of a property per square metre is about €34,900 and an average resale price of €4,025,000. A 10-year forecast into Jardin Exotique real estate market is up to 108% increase.

La Condamine: A vibrant area in Monaco, La Condamine maintains a sophisticated ambience, making it an ideal place to work and live in. Of all the districts in Monaco, La Condamine remains iconic and endlessly stylish. It is also a popular place to rent or buy a property. You will be able to get a property at €37,500 per square metre. The average resale price for a property goes for €3,733,000. Prices are capable of going up to 106% in 10 years.

Monte Carlo: Located on the Mediterranean coast on the French Riviera, Monte Carlo is a vibrant district in the heart of Monaco. It is a prestigious and luxurious neighbourhood and the world-famous Casino de Monte-Carlo is located here. Most of its real estate offering is residential with few commercial properties in sight. In 2017, you will get a property at an average price of €47,000 but this changed in 2018 as the price increased to €56,300 per square metres. In 10 years, the price is set to increase by 112%.

Monaco-Ville: Popularly called Le Rocher (The Rock), this is the oldest principality in Monaco, and is a place where you get to discover more about the Monégasque history. It hosts characterful buildings, little cafés and restaurants where Italian cuisines are served. At Monaco-Ville, property prices are quite affordable when compared to other districts. As of 2018, you can still buy a property at an average price of €3m.

THE BUYING PROCEDURE

Monaco has a rather straight forward buying process. The Princely Order appointed three notary public officials to act on behalf of the state who will be involved in all the
stages of the transaction (from the offer to transfer of property stage).

The notary public is in charge of verifying the authenticity of property transfers to protect the interest of buyers and sellers.

The three stages involved in buying real estate in Monaco are;
• the written offer
• sales contract
• the legal transfer of property

Once a buyer shows interest in a property, an offer is then made before negotiation begins. The offer letter will contain the full details of the property as well as information of the intending buyer. The intent of the buyer will be confirmed by paying a non-refundable deposit which will be collected by the notary office. The required deposit is 10% of the offer price. Once the written offer has been accepted, a notarial contract of sale will be written. This is the point where a buyer will pay the balance of the property purchase price, notary fee and stamp duty (6% of the transaction amount) and estate agency commission (3% of transaction amount and 20% VAT). The last stage which is the legal transfer of property involves authentication by the notary public. This is done by affixing a seal and signing on the documents.

After this, the buyer can now be a proud owner of a property in Monaco.

ATTRACTIONS

Casino de Monte Carlo: With a lavishly designed interior, Casino de Monte Carlo is capable of seducing you into gambling. It has been featured many times in James Bond movies. There are rooms dedicated to slot machines alone and private rooms for table games. To have an incredible gaming experience, you might want to visit Casino de Monte Carlo.

Musée Oceanographique: Located on Le Rocher, the Musée Oceanographique is a museum with renowned exhibits of oceanography and marine science standing on a massive foundation that took about 11 years to build. It was opened in the year 1910 and it also contains findings from the explorations of Prince Albert 1 as well as the discoveries of Jacques-Yves Cousteau. One of the highlights here are the aquariums with over 6,000 swimming specimen.

Monaco Grand Prix: The Monaco Grand Prix is one of the spectacular and glamorous sporting events in the whole world. It commands prestige as it serves as a host to people of substance. The race usually lasts for at most 2 hours with about 78 laps with each lap being about 3.34km. From different vantage points like the top of a hotel, from the office window and even from the yachts at the harbour. The Monaco Grand Prix is set to take place in May every year.

Jardin Japonais: When I say this place is a little paradise, I am scarcely exaggerating. The fine scenery is one of the most delightful things to witness in Monaco. Jardin Japonais has a lush garden with an observatory cave filled with stalactites and stalagmites. The Anthropology Museum in the
gardens is also worth your visit.

Roquebrune: From the hilltop on the Cap Martin peninsula, Roquebrune overlooks the Mediterranean Sea. Being an old village, Roquebrune has a rich historical heritage from the 5th century. The picturesque streets with colourful buildings, unspoilt beaches and the unrivalled view of the coast makes it a worthy place to spend some time on holiday most
especially if you are a history and architecture lover.