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Luxury Real Estate in Monaco Vs. London: What $1m Can Buy

With Brexit plans slowly coming to fruition, great uncertainty has cast a gloomy shadow over London’s property market. Might the withdrawal of companies have an impact on the cost of homes in England’s capital? Might the demand for property decrease? Might other business hubs, such as the Principality of Monaco, grow in popularity as Brits head to Europe? It’s difficult to say at this moment in time, but a comparison of the Monaco and London real estate markets offers a telling insight how far your money will go in each location. Just how far will $1 million go with regards to London and Monaco property for sale? And is one destination more appealing than the other?

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Luxury Real Estate in Monaco

In Monaco – the undisputed luxury property capital of the world – floor space is at a premium: per square metre, property in Monaco is the most expensive in the world; $1 million will buy approximately 13m2 of floor space. The extremely high demand for property, coupled with a lack of new constructions and the fact that Monaco itself is charmingly minuscule (only 0.78 square miles), has sent the already high prices in the Principality positively soaring over the past 10 years, with little sign of a reversal. Discerning business owners have long enjoyed a favourable taxation system in the Principality and have flocked to the bucolic state to enjoy the high standard of living on offer.

Not only does the scenic Principality enjoy an average of 300 days of sunshine per year, but also it boasts a cultural calendar that rivals many of the world’s biggest cities. Monaco’s residents enjoy access to world-class skiing, charming Italian and French destinations, and a yachting community that is seen in few other places in the world. Fantastic schools, a picturesque beach, and its status as the safest country in the world make Monaco a family-friendly setting. Each of these factors drives demand for real estate in Monaco skywards.

It is a rare occurrence that properties costing $1 million are found on the market, however; and they certainly do not last long when they are. This 3-room apartment near the Monte Carlo Casino, which is on the market for EUR 14,000,000 (approximately $16,553,000) and has a total area of 164m2, encapsulates the luxuriousness of Monaco’s real estate.

Luxury Real Estate in London

Life in London operates at a much higher pace than that on offer in Monaco. In such a vast setting, travelling takes time, one must grow accustomed to the noise, and that community spirit is somewhat lacking in places. However, the excitable buzz or urbanity is desirable for some people.

While your money will go slightly further in London, the lifestyle on offer is far less glamorous. Moreover, the advantages of Monaco’s tax system are nowhere to be seen in the British city. For $1 million, approximately 22m2 can be purchased in London. While this may seem more attractive, it may not be as appealing once a few calculations are made. Once Monaco’s taxation savings have been factored into the price, an investment in London real estate may make less sense than initially suspected. Both property markets are consistently strong, but with so much demand for property in Monaco, might the Mediterranean setting enjoy higher property prices for longer than London? The impending impact of Brexit will also complicate the matter of investment, whereas Monaco remains uninvolved.

Why not compromise? One should bear in mind that Monaco is situated less than 2 hours by plane from London; and with Nice Cote d’Azur Airport just 30 minutes by car or 6 minutes by helicopter from the Principality, time can be split between home in Monaco and the office in London with ease.

 

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