Housing worth its weight in gold: Real estate in Monaco

Housing worth its weight in gold: Real estate in Monaco

Lisa Lovering, spokesman for Russian business and investment club (RBIC) and specialist in real estate on the French Cote d'Azur told ee24.com portal about the situation in the market of real estate in Monaco.

- Location in the Mediterranean region of Europe, political stability and steadily growing economy make Monaco a recognized and reliable real estate market, - Lisa Lovering says. - For a long time, French and Italians prevailed among buyers of real estate in Monaco but in recent years there was an increase not only in the number of the citizens of other European countries but also in the number of investors from the CIS, North America, Asia and the Middle East. Buyers from the Commonwealth of Independent States accounts for about 40% of sales.

- What are the advantages of buying property in Monaco?

- One of the main reasons of high demand is, of course, attractive taxation system. And also the fact that the real estate in Monaco is one of the most liquid in the world. The general rule of the principality tax system is complete absence of any direct taxation, i.e. residents of Monaco (except for persons of French nationality) do not pay neither income tax nor return on capital.

In Monaco, it is possible to obtain a residence permit based on the purchase or lease of real estate. The procedure for obtaining lasts from 5 to 7 months. The applicant is the holder of a resident card for one year, which is subject to annual renewal within two years, after which two consecutive ordinary residence cards are issued for a term of three years. Later, the applicant receives a card of privileged resident for 10 years.

- Monaco is one of the most expensive regions in Europe. How much money one have to fork out to settle here?

- That’s correct. Monaco remains the most expensive place to reside in the world, where currently prices per square meter reach €44,000. Prices on the luxury real estate market vary on average between €40,000 and €60,000 per square meter depending on location and condition. The most expensive lots are usually bought by Russians and citizens of the United Kingdom for €10-15 million.

Over the past 10 years in Monaco there were few construction projects, so new buildings are of great interest. It is worth noting that prices in the principality vary greatly from area to area. In the area of Larvotto, for example, the cost per square meter can be up to €50,000. Namely, a 4-bedroom apartment in la Réserve residence with area of 159 square meters overlooking the sea and gardens is on sale for €9.5 million that is almost €60,000 per square meter.

Residences in the area of Saint-Roman such as the Parc Saint-Roman, les Villas del Sole and le Monte-Carlo Sun continue to attract very much attention. In the Parc Saint-Roman, for example, the price per square meter is more than €35,000.

The Center of Monaco, the so-called Carré d'Or ("Golden Square") is also in constant demand. Here are the residences, le Mirabeau, le Sun Tower, les Floralies, le Metropole, as well as all known residence le Park Palace. The price range in the le Mirabeau, for example, is set between €60,000 and €70,000 per sq. m.

It should be noted that spending on property in Monaco is not limited only to the sum specified in the declaration. When you make a transaction you will need to pay registration fees and notary services at the rate of 6%. And the cost of property management services is defined by the Chamber of Real Estate Monaco and makes up 8% of the rent plus VAT.

Text: Ivan Ulitin, ee24.com