London and Monaco – two playgrounds of the rich and famous. Chic, attractive and swathed in exclusivity, real estate in Prime Central London (PCL) and Monaco are at the very top of Europe’s luxury property market.
Both markets have very similar features, and very similar buyer profiles. Pastor Real Estate, a property company based in both London and Monaco, released an in-depth report which analyses the key similarities and differences between both locations in an attempt to pinpoint their draw.
What makes these locations special?
Upon first glance, the appeal of both cities is clear. Both London and Monte Carlo in Monaco are cities with huge reputations globally, famed for their glamour, wealth and elegance, and most famously associated with their respective royals, the Windsor and Grimaldi families. Synonymous with the global elite, it makes sense that both locations would be home to some of the most impressive, affluent and stylish properties in the world.
The report by Pastor Real Estate, conducted by leading property research agency Dataloft, highlights that the property landscape of both locations is surprisingly similar, with each location being home to seven ultra-prime districts, or “city-villages” which together represent 14 of the most valuable addresses in the world. These urban villages are valued for their discreetness and slice of leafy suburbia in the heart of such prime locations.
Each of London’s prime central residential “villages” is comparable to their counterparts in Monaco, and London’s continued growth has closed the gap somewhat between the two locations, as PCL areas such as Mayfair and Knightsbridge grow ever more expensive.
The ability of both London and Monaco to attract and entice the world’s wealthiest is not just down to their reputations or style alone. Indeed, simply the minute size of both locations almost guarantees exclusivity, as both PCL and Monaco are small land areas with constraints on their development. This has done much to ensure that there is a limitless global demand for property in both locations, which keeps an upward pressure on property values in both locations, no matter what the current global trends may be. As well as this, such restrictions in terms of development and space has ensured that the focus in both locations has been on the development of medium to high rise luxury apartment buildings to meet the demands of international purchasers.
As well as this, both locations are valued for their strength and permanency. Ultra High Net Worth (UHNW) buyers are undoubtedly drawn to both locations thanks to their political stability and advantageous tax regimes. As well as this, the high concentration of luxury hotels, extravagant shops and exclusive residential markets means that wealthy international purchasers know that both locations will always have something to offer them.
Currently, Fontvielle is Monaco’s most expensive address, with the average apartment price coming in at £3.43million. Similarly, its London equivalent is an apartment in Knightsbridge, the average price being £3.27million. Although the Monaco price point is still higher, the gap has been closing steadily.
Interestingly, it doesn’t necessarily have to be one or the other, as many UHNW buyers who buy or rent prime properties in London also tend to have an address in Monaco, which highlights that both locations are viewed as solid investments in their own right. At the same time, London continues to follow in Monaco’s footsteps, with Mayfair now challenging Knightsbridge as London’s most expensive location in much the same way that Fontvielle challenged Monte Carlo in the past.