House Hunting in … Monaco
By ALISON GREGOR
Set in Monaco’s quiet garden district, this two-bedroom apartment on the fourth and top floor of an elevator building is on the market for $2.2 million. The building, dating to the early 1900s, has corbeled balconies and elaborate wrought iron accents.
With 750 square feet of space, the unit has been renovated in a traditional style incorporating modern elements like automated lighting and stereo systems.
The large foyer doubles as a kitchen/dining area, with appliances hidden behind elegant wardrobe-style doors. The kitchen island, which accommodates stools for dining, is adorned with mosaic tiles. Beyond is a wainscoted salon with an ornate coffered ceiling and a floor in a large red-and-white checkered pattern. The walls are plastered in Venetian stucco. French doors open to a decorative Juliet balcony.
On either side of the salon are the bedrooms, which have similarly elaborate ceiling moldings and Venetian stucco walls. The bath has old-style brass fixtures by the English company Heritage Bathrooms and a glass-enclosed shower with a rain showerhead. LED lighting in the shower can be reset in different colors. A clamshell sink of ceramic on a stone base was handmade in Naples.
The building is on the main avenue in the district, the Boulevard du Jardin Exotique, but the apartment faces a quiet street at the rear, said Bernard Koning, the principal owner of ABK Real Estate, which has the listing. The unit comes with an on-street parking space and a 22-square-foot lower-level storage space.
The Jardin Exotique district, which is on the border with France, has small shops for necessities, but the apartment is a 15- to 20-minute walk from the Carré d’Or, Monaco’s center in Monte Carlo, where casinos, luxury shops, hotels, restaurants and the priciest real estate are found, Mr. Koning said. The Jardin Exotique district is the site of Monaco’s new train station, and buses run frequently along the boulevard, taking about eight minutes to arrive in the Carré d’Or. The closest airport is Nice International in France, which is about a 25-minute drive with no traffic, Mr. Koning said.
Until the real estate bubble burst in 2008 there was a steep increase in real estate values in Monaco; some homes doubled in price, Mr. Koning said. The global financial crisis cut the number of transactions by more than half, and prices fell 15 to 35 percent.
Values appear to have stabilized, but homes are taking time to sell. “Business is slow at the moment,” said Julie Alejo, the owner of EIP Agency. “Potential clients are showing interest only in high- or low-end products.”
Yet the market did get a lift as of last June, when a new law reduced closing costs by about 40 percent, said Émilie Mazza, a co-owner of Mazza Immobilier. In the long run, said Tim Swannie, a director of Home Hunts Luxury Property Specialists, the lack of a personal income tax in Monaco will help maintain a climate favorable to real estate. “Monaco’s tax-haven status ensures the market remains buoyant and prices stable,” he said, “so investment in Monaco real estate continues to be attractive.”
This apartment, priced at about 23,500 euros per square meter, would cost at least 60 percent more if it were in the Carré d’Or, Mr. Koning said. The apartment has been listed for three months and is priced lower than the average apartment in the Jardin Exotique, which is about 25,000 euros per square meter. “It’s an older building, which some people like due to the character, but other people don’t care for,” Mr. Koning said.
Only 20 percent of Monaco’s 35,000 residents are Monégasque, so the market sees many foreign buyers, most typically seeking modern apartments close to the Carré d’Or, the beach area of Larvotto, and in Fontvieille, a district reclaimed from the Mediterranean in 1981. Many older residents are French, as the French government did not collect income tax from its citizens residing in Monaco before 1963, Mr. Koning said. A stricter policy since then has discouraged French buyers, and today there are more from elsewhere in Europe, particularly Britain and the northern countries, he said.
Mr. Swannie says Monaco also has buyers from Italy, the United States, Canada, Australia, South Africa and the Middle East. Russians have been major buyers over the past five years, Ms. Alejo said.
There are no restrictions on foreign buyers, though background checks are required, Mr. Koning said. Most buyers hire agents, who typically charge about 3 percent of the purchase price, agents said. The listing agent gets 5 percent, which is paid by the seller. The transaction itself is handled by a notary, who typically charges about 1 percent.
The June 2011 law reduced to 4.5 percent the registration tax charged on a typical property sale, according to Rosemont International, a financial consulting company with a branch in Monaco.
Most buyers pay in cash, but it is possible to cover as much as 70 percent of the purchase price with a mortgage, Mr. Swannie said.
from nytimes.com


































