Tiny state of Monaco records unprecedented residential sales figures.
It is likely that you may think Hong Kong is the most expensive place to invest in residential property. However data released from real estate Savills reveals that Monaco is crowned with this title. The average resale price for 2016 in this small independent state was USD 45,255 per square metre.
Situated on the French Mediterranean coastline, Monaco is world famous for its air of exclusivity. It offers a certain level of lifestyle for those choosing to call it their home. Residents who are not living in the state for employment reasons, must prove they can afford to live in Monaco and deposit funds of USD 546,556 into a bank account.
In return residents can enjoy a number of benefits. This includes a favourable tax system. The state is considered to be very safe and secure with a 24 hour video surveillance system. A temperate climate with ample business opportunities. Plus access to attractions that include luxury casinos, the Grand Prix, and high-end retail opportunities.
Measuring just 2.02 square kilometres and with approximately 38,840 residents, it is an incredibly densely populated nation. However this is posing to be a real sticking point for the state’s real estate sector. The limited land space is hampering future development. In order to rectify this, Monaco is planning to reclaim land from the sea over the coming ten years. This will create more space for future projects that include residential and commercial schemes.
Forecast
Despite transaction numbers falling due to residents holding onto their properties, prices are expected to remain at record highs. This is spurred on by a lack of supply as there were no new projects in 2016. Additionally it is expected that Monaco will continued to be deemed as a safe haven for high net worth individuals particularly as the UK alters its non-domicile rules luring more expatriates to this tiny state. This is supplemented by annual growth figures that outperform the rest of Europe.
Plus development is continuing. Monaco is known for its world class events and the state is investing in infrastructure to continue its appeal as a business and leisure destination. There is no reason to believe that interest in Monaco will slowdown anytime soon or that it will lose its title as the world’s most expensive place to buy real estate.
