The most expensive houses in Monaco are selling to Russians
The most expensive houses in Monaco are selling to Russians
Density of wealthy populace increasing in the principality
The typical buyer profile of Monaco homes is in a flux, skewing younger and leaning toward non-Europeans, a recent report by Knight Frank showed.
Middle Eastern and Chinese nationals are reportedly springing for Monaco properties priced above EUR10 million (USD11 million), while their British, Italian, Swiss, and northern European peers tend to be active around properties below those price points. “Not only is the age of buyers lower than it was a decade ago, but the nationality of buyers can increasingly be defined according to their purchasing power,” wrote Knight Frank researcher Kate Everett-Allen.
Monaco remains a highly coveted tax haven among high-net-worth individuals (HNWI) worldwide. “Unlike many other tax havens, it is neither remote nor compromised on its lifestyle offering,” Edward de Mallet Morgan, head of Knight Frank’s Monaco department, reported. “Monaco is, after all, located on the most sought-after coast in the Mediterranean, with the Cote d’Azur and the Italian Riviera on its doorstep, ski resorts an hour away and Nice airport with connections to Europe and beyond and within approximately a 30 minute drive.”
More: Weak euro plus strong dollar equals Monaco’s record-breaking year
Home to 12,200 millionaires, Monaco has seen a 62 percent increase in its population of wealthy people or those with net assets of more than USD30 million over the last 10 years, according to Knight Frank. Prices for Monaco properties have also soared by 27.8 percent over the last five years, according to the Monaco Statistics office.
Russia’s super-rich are trickling out of the country in droves. A survey by market research company New World Wealth found Russia as having the world’s sixth biggest outflow of individuals worth over USD1 million, with the number of millionaires falling 2 percent last year.
Political uncertainties have largely driven the country’s rich citizens to other shores. In a survey by property broker Tranio.com and Spear’s Russia, 58 percent of HNW emigrants from Russia cited tensions in Ukraine and the depreciating ruble as main reasons to flee the country. Around 2.2 percent reasoned that they are in search of more attractive tax regimes.
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Source: Property Report