Monaco in pole position as a new era of higher taxes beckons
The security and privacy Monaco offers is not going unnoticed by wealthy buyers. The pandemic has increased wealth inequality, but it has also led the super-rich to re-evaluate where and how they want to live.
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Many are bracing themselves for a new era of higher taxes and lower asset growth as fiscal stimulus is withdrawn and interest rates rise.
Sales
Against such a backdrop Monaco is gaining attention. Residential sales increased 7% to 440 in 2021 and the number of individuals with more than US$30m grew 5% in 2021 according to The Wealth Report 2022. This latter figure is forecast to rise a further 23% in the next five years.
In Monaco, the €5m-€10m price band saw the biggest increase in sales in 2021 with a 38% jump year-on-year. The neighbourhoods of Monte-Carlo and La Rousse together accounted for 56% of all sales.
New schools
A cohort of younger families, many from the UK, Scandinavia, Germany and Switzerland, are arriving in Monaco. The Principality’s International School (700 students) and a new British School, which is due to open in September 2022, are key draws.
Demand for larger and more spacious apartments is evident since the onset of the pandemic. Three-bedroom properties accounted for nearly half of all properties sold in Monaco in 2021, the highest proportion since 2006.
New investment
Alongside the Mareterra project, Monaco’s government is investing heavily in the Principality’s infrastructure. The Larvotto beachfront has been redeveloped, the Heliport is being extended and a new cable car linking Jardin Exotique and Fontvieille is planned. This will form part of a bigger regeneration project for Fontvieille. By 2027, the neighbourhood will be home to an urban forest, 30,000 sq m of commercial space with 80 stores and a multiplex cinema.
Relative value
Of all Monaco’s eight key neighbourhoods, Jardin Exotique offers arguably the best value. In 2021, median prices stood at €35,460 per sq m according to IMSEE, Monaco’s Statistics Office, a figure that has risen 24% in the last five years and is likely to see further strong growth given the area’s improved connectivity.
