Monaco is definitely known to be one of the most notorious destinations to reside for the wealthy, and according to Bloomberg, the Monaco real estate market is booming. Why is this the case?
- New Property Construction
After years of construction, Monaco’s Tour Odeon, the first skyscraper to be built in the principality for over 20 years, is close to completion. The new tower, which is 49 floors high, is filled with luxury duplexes and triplexes complete with state of the art services and facilities. The last five levels are occupied by the world’s most expensive penthouse, which is over 3,300 square meters and will be on the Monaco property market for over 300 million euros. Monegasque Architect, Alexandre Giraldi, designer of the Tour Odeon and the newly build Monaco Yacht Club has plans to build yet another 18-floor building near the Casino on the famous Avenue de La Costa. All of these newly built luxury properties are attracting the wealthy worldwide to purchase a property in the most glamorous area in the world.
- Local and Foreign Taxes
Everyone that has heard of Monaco knows that it is a tax haven. Switzerland is also known to be one of the countries in Europe with the lowest tax-rates as well, however with Swiss Banks moving towards having less financial secrecy between the tax authorities, the wealthy are searching for a new place to keep their financial investments. Taxes are also rising in Swiss luxury real estate, where a tax has been introduced on all properties sold for over two million euros. With tax rising and banks not being as secret as they used to be, the ‘tax tourists’ are beginning to move to a more financially stable area, Monaco.
- Higher Demand for Luxury Properties
To have residency in Monaco, you need to live in the principality at least six months of the year. Demand is rising in Monaco for 5+ bedroom luxury properties as opposed to studios, due to more and more families moving in to live in the Principality. Compared with last year, 5+ bedroom Monaco apartments prices have risen 24%, whilst studio prices have decreased by 9%.
With higher demand for larger luxury houses in the principality, new constructions, especially high-rise buildings are being built, due to the limited amount of space. The now less financially secret Switzerland is driving residents and ‘tax tourists’ away from the country, leading them to find new residency in the tax haven of Monaco. With more and more luxury homebuyers moving in to the Principality, there is no wonder to why Monaco real estate is booming.