If world cities like New York, London, Singapore and Hong Kong are the crown jewels of global real estate, then Monaco is a rare gem of particular value in the vault of ultra wealth.
Monaco is rare because it not only displays the credentials of the world’s most invested urban markets but also has the qualities of a destination and recreation location. It caricatures the supply-demand imbalances of most world cities in that it presents tiny supply against high and increasing demand.
Monaco is particularly supply-constrained with an area just 6% the size of Manhattan and 3% the size of Hong Kong Island. Meanwhile, demand for homes in Monaco from the world’s ultra wealthy is particularly high – it is the sixth most important world location for ultra high net worth individual (UHNWI) real estate holdings.
This provides a significant reason for investment in itself alongside the multitude of other reasons that the wealthiest people in the world find to buy residential real estate in the Principality. The hybrid nature of Monaco as a conurbation, destination and recreation location diversifies risk while maximising the potential market for property. It also means that Monaco’s recovery cycle is likely to be extended. At a time when many prime global city markets have become fully valued and face a period of little or slow growth, Monaco can ‘extend its season’.
This is because resort, retreat and destination properties around the world are showing increased activity and signs of price growth after six years of decline and stagnation. Monaco can also surf this wave having already paddled out to the big breakers alongside the global cities. At the risk of extending this metaphor a little too far, this wave of world money is likely to continue rolling across the world for up to a decade. Many other cities would like to ride it in the way that Monaco has, but few can emulate the unique characteristics and combination of attractions found in this jewel of a European principality.
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