How London is becoming the new Monaco
The gap between the most expensive properties is closing fast thanks to 28% jump in British capital in just two years. With its tax breaks for the super-wealthy, its Mediterranean climate and beautiful sea views, Monaco has long boasted the world’s most exclusive property market.
But a new study has found the gap between house prices in prime London and Monaco is closing.
For decades, Monte Carlo has attracted the world’s rich and famous including Sir Roger Moore, Dame Shirley Bassey and Sir Philip Green.
Yet, England’s capital appears to be creeping up on the principality after house prices rocketed in the last three years. A report by Pastor Real Estate found said ‘prime London residential property values will soon be on a par with Monaco’, as both cities compete to attract the world’s rich and famous.
In Fontvieille, Monaco’s most expensive address, the average apartment is now £3.43million, while Knightsbridge is not far behind at £3.27million.
And the lettings markets in West London’s Knightsbridge is already out-performing Monaco, costing £65 per square foot compared to £61 per square foot in Monaco, according to figures compiled by Dataloft.
It was a very different picture three years ago, as Britain struggled to recover from the economic crisis. Between 2006 and 2011, the gap between the two markets widened as Monaco was cushioned from the worst effects of the global financial meltdown.
By 2011, Monaco was 64 per cent more expensive than prime central London, costing £2,392 per square foot compared to £1,463 per square foot. But between 2011 and 2013, the gap between the two property markets closed to 30 per cent.
While prices in London’s exclusive boroughs shot up by 28 per cent in two years to £1,875 per square foot, prices in Monaco’s rose 1.6 per cent to £2,430 per square foot.
Experts now predict it will not be long before house prices are ‘neck and neck’. Susan Cohen, Director at Pastor Real Estate, which commissioned the research, said: ‘Both markets are characterised by global demand and constrained supply, both have economies based on finance, tourism and commerce, and both rival each other for the role of Europe’s most valuable and sought after luxury property destination.’
Both Prime Central London and Monaco have exceptionally high levels of overseas buyers – over 80 per cent for Monaco compared with 75 per cent for Knightsbridge, Belgravia and Mayfair, which drives up prices.
Alex Lawrie, of property PR company Lawrie Cornish, said: ‘Since 2011 the London market has been resurgent with a huge influx of global investment into the capital over the last three years.
‘In contrast, Monaco has continued the pattern of stability and the gap overall has closed. In the ultra prime market London has drawn level with Monaco.’
Date: 21/09/2014 | Source: Daily Mail
* DISCLAIMER: LPP does not own or claim to own any rights to the above presented article, all news articles are and remain the property of their authors/owners/publishing websites, these third-party articles are provided for your convenience/informational purpose only.