The buzz is coming back to Monaco
IN its 1950s heyday, Monaco was a place of high European glamour and refinement, reigned over by Grace Kelly. Very much the rich – and royal – man’s St Tropez, it is now known more for its oligarch traffic jams, Formula One racing, casinos and cruise ship embarkation point. But a range of tax breaks has long made Monaco an attractive place for the world’s richest to park their cash. So, despite the loss of its golden age halo, it remains firmly on the map of property hotspots and, of course, gamblers and racing car enthusiasts.
Now, following a serious lull in the market (Knight Frank reported total stagnation in 2010), things are picking up again in Monaco. A new statute, “Law 1381”, means that registration tax is cut from 7.5 to 4.5 per cent and investors can rent out property without paying tax on the income, which is a nice boon (though don’t expect to make it rich as a buy-to-let supremo due to the sky-price of purchase).
Fred Schiff, of Knight Frank’s international department, says the introduction of 1381 at the end of last year coincides with a notable uptick in transactions – a relief for developers and agents trying to shift the luxury apartments in new developments such as 23 Boulevard de Belgique, currently only half sold. The Tour Odeon, due to be unveiled in 2013, will be Monaco’s highest building and will substantially increase supply of apartments.
The property market in Monaco may have been languishing since Lehman went down, but the principality still boasts the most expensive square footage in the world: €40,000-€50,000 per square metre in prime locations. Nevertheless, Schiff insists that there is property available for more “affordable” prices – between two and five million euros for between one and three bedrooms.
“Well-priced property is doing very well. I just sold a £5m home with three bedrooms – there were a number of buyers and the person had to move very quickly. It’s a myth that you can’t get anything from under £5m in Monaco.”
And for all that the young and hip may prefer the south of France, Monaco isn’t quite – as one property insider put it – the “drunken uncle” of European enclaves. For example, Byblos, one of the world’s most famous nightclubs, and Alan Ducasse, the Michelin-starred chef, have outlets in the principality, making it a suitable stomping ground for Princess Stephanie and her entourage.
Combined with the year-round sun, bright blue sea and hordes of beautiful people, you can see why owning a pad here would hardly be a chore. And, with increased stock and a renewed sense of buzz surrounding the city, this could be a good time to consider it.