Monte Carlo Tops Eurozone Real Estate League
Central London property prices have risen again, and have overtaken Monte Carlo’s property prices, according to recent reports.
While the future of London property prices remain good, there are some doubts if the increases can be sustained, and Monte Carlo remains the most expensive real estate for property that is priced in Euros.
Interest rates in the UK have been rising recently, and there is a danger of UK property prices generally falling, which could have an impact on the top end London market.
But Monte Carlo property prices are almost certain to rise in the short and medium term according to a Monte Carlo travel guide, and possibly to the level where the cost per square foot will exceed that of London.
‘Three years ago there were around six hundred properties to rent or buy in Monte Carlo – that has declined since then to two hundred – but demand is as high as ever, pushing prices up more.’, explain the travel guide.
With property prices in Monte Carlo the second highest in Europe and highest of all the countries that price their properties in Euros with one bedroom apartments after closing costs starting at around a million Euros, longer term the shortage of property in Monaco will be helped a new island being built off Monte Carlo.
It’s thought unlikely that the new island will reduce prices much overall though, despite the increase in the number of property units available as Monte Carlo is always in demand.
Monte Carlo property specialists believe that most new apartments will be sold to investors off plan well in advance of any building work starting.
‘The problem with property in Monte Carlo is not the lack of buyers’, they say, ‘but more the lack of good properties for buyers to choose from. Hopefully the new island will address that. Everyone in Monaco is aware of how important the environment is thanks to Prince Albert’s initiatives in pushing it up the political agenda, and any new developments will be low rise. With the good weather in Monaco expect to see plenty of solar panels on the roofs to make the buildings energy efficient’.
It is possible that the new island will be incorporated into future Monaco Grand Prix, which could give more overtaking opportunities.
One Monte Carlo property company reports that new enquiries are running at a high rate, with many buyers keen to buy now in case prices go up more, either for residency, or more commonly than before for investment.
In recent years the UK market has accounted for much of Monaco’s property price rises, as the number of buyers has increased to 40 per cent of the total market, but in recent months buyers from other European countries and from further afield, Australia and Canada in particular have been noticeable.