The small city state of Monaco is one of a kind. The French principality is in fact by no means small. Located in the heart of Europe, having a Mediterranean coastline and with a mild climate, Monaco is now the foothold of prime real estate globally.
In this location, the most expensive address for real estate on the globe, a square metre of real estate costs KSh. 4.9 million; about the median house price for a middle-income earner in Kenya and far from what the wider population would consider affordable
Yet prices have been making uphill trends, last year property prices in Monaco increased 18.1% according to Bloomberg data. However, wealthy investors have continued oozing demand, undeterred in their quest for a slice of the cake.
Obviously, not all locations are created equal…
The total value of real estate transactions for Monaco in 2018 came to about US $3.4 billion, in a country whose total land area is just 202 ha.
Monaco has in fact surpassed Hong Kong as the most expensive city in the world. After all, where in the world do apartments sell for more than KSh. 500 million? Monaco.
And where in the world are citizens entitled to zero income taxes and zero tax on capital gains? Again Monaco.
On occasion, a listing spotting a KSh. 2.6 billion 3-bedroom apartment was seen on one of the relevant agencies in 2018, according to Bloomberg. With a total population of 40,000 residents, a quarter of whom moved in over a period of just eight years with staggering networths, it is plausible.
Most residents are entrepreneurs, movie stars, sports stars and other wealthy individuals, most of whom are older than 50.