The Principality of Monaco is a small country. It is about 3.3 km long and 0.6 km wide, with a surface area of about 2 sq. km, or about one third the size of Central Park in New York City. Its normal population is approximately 37,000. The climate is pleasantly mild in winter and warm in summer. French is the official language, but Italian and English are frequently used. English is centrally important in the business Community.
Monaco is easily accessible by car, railway, plane, or sea. Nice Côte d’Azur International Airport is 22 Km from Monaco and has regular and frequent service to the world’s principal cities. The trip between the airport and the Principality takes about 7 minutes by helicopter, about 45 minutes by car or taxi, and about 1 hour by bus.
Monaco is very concerned about individual security and personal rights and is universally recognised as a secure country. About 700 well trained civil servants help ensure security of an area smaller than 2 sq. km. They are all particularly attentive to the rights of a safe and private personal life.
Monaco is a constitutional monarchy. Its current constitution, the Constitution of December 17, 1962, developed from the Charter of 1848 and the Constitutional Act of 1911 which established the separation of powers. The Prince is the Chief
Executive, with two chambers for the legislative power, the Crown Council and the State Council, and judicial organisation operating outside of state action and prosecution investigations. Monaco is a member of many important international organisations, including the United Nations, the World Industrial Property Organisation etc.
The Principality maintains diplomatic relations with many European and other Governments around the world and is bound to numerous countries by special conventions on subjects such as extradition, judicial assistance, money laundering issues, and civil status. Monaco has signed several bilateral agreements with France, among which the French– Monegasque Customs union created in 1861 that has brought Monaco into the European Union trade zone without actually being a member of the EU, and other treaties establishing tax agreements, and judicial assistance.
Monaco Characteristics
✩ Monaco is one of the few places in the world that shares characteristics of a world city, centre of commerce and top tier ‘recreation destination’, providing its residential markets with a broad demand base.
✩ A centre of global wealth, Monaco has the world’s highest density of ultra wealthy individuals and is the sixth most important world destination for their direct real estate holdings .
✩ Celebrities, titans of industry, aristocrats and other global elites call the Principality home. Monaco’s appeal is far-reaching. Fine dining, luxury shopping, a sporting calendar which seems tailor-made for the global elite, an attractive fiscal regime for residents, its location on the Mediterranean and history, all contribute to its international standing.
These factors mean that demand for real estate of all types is high, despite the recent Covid-19 pandemic.
As one of the least affected parts of Europe, Monaco was able to ‘flatten the curve’ of Covid-19 infections successfully within the Principality. A robust health system, public co-operation and strict lockdowns were critical to the success of Monaco’s response to the pandemic. While the economic impact of the virus on retails activities is still largely unknown, the residential market in Monaco is well placed to weather the storm of any economic downturn.
This is similar to what happened following the Global Financial Crisis. Prices per square metre declined by 13% in 2009 compared to the previous year, but, a year later, they had returned to pre-recession levels.Transactions volume took three years to recover to 2007 levels.
The residential property market remains the most expensive in the world and supply of new property is scarce. A high demand vs a limited availability has pushed ultra prime prices to the highest globally, over €91,000 per square metre.
In order to remain competitive on a global stage, the Principality is building on the water on reclaimed land, and skywards . The new projects are comparable with those found in the best addresses in London, New York and Hong Kong.Continued price appreciation in Monaco’s residential market is expected due to demand from a growing number of global ultra wealthy individuals, set against limited levels of new supplies.
