Monaco - Defying The Recession

The Monaco Grand Prix held at the end of the Mayrecently, Prince Albert of Monaco acknowledged the
shows Monaco in her full glory to the world for aimportant contribution British people are making to his
Sunday afternoon, and this year was no exception ascountry, and said he would like to see more in the
Lewis Hamilton won the race for the first time.Principality. Prince Albert is particularly keen to see
Monaco is known the world over not just for the bestBritish entrepreneurs move to Monaco, but one travel
Grand Prix of the F1 season, but for million andguide for the country doesn't think Prince Albert has
billionaire residents, glamour...and some of the mostfully thought through his ideal scenario.
expensive property in the world.'Prince Albert said recently that he welcomes British
But with the world on on the brink of a possibleentrepreneurs moving to Monaco, but that he wouldn't
recession and falling house prices both in the US andbe distributing leaflets on London's streets to get more
Europe, Monaco could buck the trend in the yearsto do so. But he is missing the point. The costs involved
ahead and see surprisingly big gains in prices whilein moving to Monaco are prohibitively high, even
those around her go into freefall.compared to London standards, and if he is serious
Part of Monaco's price increases in recent years, andabout British talent moving to Monaco while we don't
for the medium term future too, is that new housingexpect Monaco to remove the financial barriers he
being built is for locals, and a strong new supply ofcould move to lower the bar a bit at least.'
openly available apartments is unlikely to happen forA well respected US magazine recently claimed
ten years - and with strong demand and little supply itMonaco has the most overpriced real estate in the
suggests further price rises are likely for this year andworld, claiming the rental returns as part of their figures
next.meant the tax haven's property costs were unduly
British citizens have moved to Monaco in high numbershigh.
in recent years and as UK taxes show no sign ofIn response a Monaco internet site says the American
falling this large group is expected to swell further inmagazine are wrong, and have forgotten why
2008.Monaco's property prices are high in the first place.
Previously a relatively small group of Monaco residents,'The error they made was comparing Monaco with
the number of British people living in Monaco hasplaces like Rome, Warsaw, Los Angeles and
doubled in the last three years since 2005, with someVancouver, and they also overestimated closing costs.
3000 now claiming residency in Monaco.While admittedly high in Monaco at around 11 per cent,
Attaining residency in Monaco necessarily meansit's not common to be 20 per cent that their research
renting or buying an apartment. The lowest pricedwas based on.'
property on the market at the moment is a 30m2Monaco property buyers would find it difficult to find
studio with a 7m2 balcony in the Fontvieille district atanything at all for 700,000 Euros, even for the smallest
720,000 Euros. With closing costs this rises to overstudio apartment, and realistic starting prices are from
800,000 Euros. As well as buying a property, to gaina million Euros.
residency in Monaco a bank account needs to bePrices last year rose dramatically, with the Casino
opened in the Principality, with account openingSquare area seeing price increases close to forty per
deposits varying between 100,000 and 500,000 Euros.cent, and in Fontvieille, close to the helicopter pad which
Mid range is a 210m2 3 bedroom 2 bathroomconnects Monaco with Nice Airport, prices nearly
apartment in Monte Carlo, close to Casino Square, atdoubled.
4,200,000 Euros. And at the top end is a three floorOverall it is thought that demand has grown by around
penthouse apartment in the well known Eden Starthirty five per cent over the last five years, with few
development at 25,000,000 Euros, equivalent to aroundnew Monaco properties becoming available to meet
16 million Sterling.the new buyers expectations and putting pressure on
At the opening of Monaco's new consulate in Londonalready high real estate prices.