Monaco Makeover

The top-end of the Monaco market is on a tear as wealthy buyers seek shelter from the economic storm clouds building on the horizon, reports Abode2 luxury property magazine

New data from Knight Frank shows resi sales in the principality rose by 7% to 440 in 2021, with the €5m-€10m price range witnessing a 38% jump year-on-year. Significantly, the average price of a resale property has now breached the €50,000 per square metre threshold for the first time.

At the same time, the number of individuals with more than US$30m grew by 5% – a figure that’s forecast to rise a further 23% in the next five years.

The pandemic has increased wealth inequality, but it has also led the super-rich to re-evaluate where and how they want to live,” said the agency. “Many are bracing themselves for a new era of higher taxes and lower asset growth as fiscal stimulus is withdrawn and interest rates rise.”

Against this backdrop, the enclave has been “gaining attention” amongst the super-rich, attracted by the security and privacy on offer.

Education is proving a key draw for families, said the firm – notably the International School (700 students) and a new British School, which is due to open in September 2022; this looks to be showing up in the data, as three-bed properties accounted for nearly half of all properties sold in Monaco in 2021, the highest proportion since 2006.

Monaco’s government is also pumping huge sums into the area’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 square metres of commercial space with 80 stores and a multiplex cinema.

Most exciting of all, however, is the high-profile and innovative land reclamation project, Mareterra, formerly known as Le Portier. Slated to be completed in 2025, the €2bn scheme will add six hectares and extend Monaco’s land mass by 3%. 125 new homes are being delivered, with some expected to achieve €100,000 per square metre. That’s almost double the average prime price in Monaco (€51,912), so would effectively make Mareterra the most expensive residential development globally.