Focus: Rental profitability and patrimonial real estate investments in Monaco
The Principality of Monaco is known the world over for its advantageous tax framework. But did you know that it is also a great place to invest in real estate? Let’s find out about the advantages of investing in real estate in Monaco.
Rental profitability in Monaco: modest but a dynamic real estate market
Many client investors in real estate are turning to the Monaco rental market, a market which certainly has lower yields in neighboring countries, but which allows them to have secure income (no unpaid debts and leases clearly in favor donors) and to be able to capitalize on a real estate portfolio that will be reassessed year after year.
The rental yield on real estate in Monaco is most of the time between 1.8 and 2.5%, we rarely expect 3%. It depends on the neighborhood and the size of the property considered. As everywhere, small-area properties tend to have a higher profitability. Also, the average rental period is longer than the average and very often several years. Finally, the rents must be paid until the end of the lease, even if the tenant vacates the accommodation before the scheduled date.
Investing in real estate in Monaco? Indisputable advantages
Monaco offers an exceptional setting for real estate investors. Of course, its advantageous tax framework, with an absence of direct taxation and inheritance tax, makes rental investment even more attractive.
But Monaco is also and above all a place where life is good. Located on the French Riviera and a stone’s throw from Italy, the Principality enjoys exceptional weather with its Mediterranean climate. In addition, the Rock is a safe place. The authorities make a point of ensuring a very high level of security for property and people.
In addition, Monaco is also a unique and stimulating ecosystem that involves investors from all over the world. In addition to French and Italian residents, the Principality welcomes many British, German, Belgian, Swiss, American, Russians, etc. Many renowned events take place in the Principality each year and the pride of place is given to culture, art, etc.
The Monaco real estate market is therefore very specific and presents an attractive relationship between supply and demand. This trend can only grow stronger in the years to come. With a unique environment, real estate demand in Monaco is very strong. However, despite many expansion projects, Monaco’s surface area remains very limited, which limits the supply. Monaco therefore has all the characteristics of the ideal place to invest in real estate.
