The number of millionaires in Monaco will grow to 16,100 by 2026 as the city-state builds on its reputation as the ultimate playground for the super-rich.
In 2016, there were 13,400 millionaires in Monaco, and with that number set to grow by more than 20 per cent, space will be at a premium in nine years.
Property prices already reflect the ongoing demand for space in Monaco. In the second quarter of 2017, typical prime residential values were €53,000 (£47,163) per square metre, according to data from Knight Frank.
The high prices are also a reflection of a lack of supply. Data from the Monaco Statistics Offices has shown there were no new residential units completed in Monaco in 2016.
Ultimately, space is limited; the principality is only slightly larger than Regent’s Park. When a new development is underway, the flats are often sold before the building is finished. There are two schemes under completion near the harbour, and all the properties in these rare developments have been pre-sold, with prices starting at around €2m (a relatively modest price for Monaco)
Edward de Mallet Morgan, head of the Monaco Desk at Knight Frank said: “While the rest of mainland Europe still looks less attractive and Britain comes with high buying taxes, buyers who can’t find what they are looking for in Monaco find other ways to make this unique location work for them.
“Some will rent and wait. Others will buy something smaller than planned, plus a larger property nearby in France perhaps and a yacht.”
He said that in the battle for space in Monaco, developers are starting to reclaim land from the sea for the benefit of millionaire clients.
In a €2bn land reclamation plan, six hectares of new land will be created, on which the developer will build 120 new apartments.