Construction has begun on a $2bn (£1.5bn) scheme to reclaim land from the sea around Monaco for more luxury apartments, as the principality faces a housing crisis for the super-rich. Around 2,700 additional millionaires are expected to settle there over the next decade, according to Knight Frank, adding to the 35% of residents who are already millionaires.
The sovereign city-state, barely larger than Regent’s Park in London, has run out of space. Prince Albert II approved the “offshore urban extension project” to add six hectares, creating 120 luxury homes selling for over $100,000 per sq metre – more expensive than London’s One Hyde Park. The new Portier Cove ecological neighbourhood, near Casino de Monte-Carlo, is seen as vital for continued growth, as no new-build apartments went on sale last year.
Bouygues, the construction firm, promises no environmental harm, having moved seabed species to a reserve and installed 3D-printed artificial coral reefs on concrete caissons. Only 70 of the apartments, some designed by Renzo Piano, will be sold; the rest retained by the developer. Knight Frank’s Edward de Mallet Morgan said demand and lack of supply have sent prices “through the roof”.
Monaco’s tax advantages remain a key draw: no personal income tax and no inheritance tax on assets held locally or overseas. Among its wealthy residents are Sir Philip Green’s wife, Tina, and Formula One drivers Lewis Hamilton and Jenson Button. Inheritance tax breaks are particularly attractive for families preserving multi-generational wealth.
