Real estate is THE key sector of the Principality's economy, representing almost 10% of its GDP (IMSEE figure for 2020: 9.6%). With its stable economy, Monaco attracts investors and the "Barnes city index 2021", where Monaco is ranked 13th, confirms the country's attractiveness. The international luxury real estate network - Barnes - analyses each year a very precise segment of personalities and families. These are the HNWI and UHNWI and to be eligible for either of these two categories you need to have assets of between 1 and 30 million dollars or more.
The Barnes study reveals another major development: generation Z (born between 1993-2010), which will represent 10 to 15% of UHNWIs in 2025, is taking hold. Generation Y (born between 1978-1992) and generation Z are very environmentally conscious and will change the face of the property market: they will undertake major renovations to bring their homes up to energy standards. To do this they will use "clean" materials and "contribute to the ethical and eco-responsible footprint of luxury real estate".
It is to meet this demand that the Princely Government has adopted several incentives and regulations.
Among the incentives impacting real estate actors such as owners, condominium syndicates, and construction actors, we can cite
- Incentives for the installation of individual or collective photovoltaic electricity production devices (notice published in the Official Journal of Monaco n°8223 of 1 May 2015);
- specific aid for electric vehicles (Ministerial Order n° 2018-1182 of 18 December 2018).
- specific aid for electric vehicles (Ministerial Order n° 2018-1182 of 18 December 2018).
The installation of solar energy devices, and electric vehicle charging stations are among the future projects of the works to enhance real estate investments.
The government has also created the Green Fund with €25 million to support companies and individuals in their energy transition. The aid allows for the renovation of single-glazed windows:
- The renovation of single glazed windows;
- The purchase of equipment and fittings for the energy transition;
- the exemplary energy renovation of buildings.
Binding regulatory measures are set for the building sector:
- imposed for new buildings: a maximum energy consumption and a minimum rate of use of renewable energy, as specified in particular by Ministerial Order n. 2018-613 of 26/06/2018 on the thermal characteristics of new buildings, renovations of existing buildings and extensions;
- prohibits the production of heating and domestic hot water with oil energy for all buildings from 2022;
- make energy audits mandatory for buildings constructed between 1930 and 1990 from 2022;
- made it compulsory to carry out thermal insulation work during certain building renovation works.
- granted a concession for the operation and marketing of two thermal spa loops to equip 3,500 homes in Larvotto and Condamine (representing 7% of the total useful surface area of buildings in Monaco) with heat pumps that will produce air conditioning, domestic hot water and heat with particularly low electricity consumption.
In this context, it is therefore essential for those involved in investment and property management to determine whether the properties they are planning to acquire or manage have undergone or would benefit from work that would have a definite impact on their value in terms of the energy transition objective to which the Principality remains resolutely committed.- The purchase of equipment and fittings for the energy transition;
- the exemplary energy renovation of buildings.
Binding regulatory measures are set for the building sector:
- imposed for new buildings: a maximum energy consumption and a minimum rate of use of renewable energy, as specified in particular by Ministerial Order n. 2018-613 of 26/06/2018 on the thermal characteristics of new buildings, renovations of existing buildings and extensions;
- prohibits the production of heating and domestic hot water with oil energy for all buildings from 2022;
- make energy audits mandatory for buildings constructed between 1930 and 1990 from 2022;
- made it compulsory to carry out thermal insulation work during certain building renovation works.
- granted a concession for the operation and marketing of two thermal spa loops to equip 3,500 homes in Larvotto and Condamine (representing 7% of the total useful surface area of buildings in Monaco) with heat pumps that will produce air conditioning, domestic hot water and heat with particularly low electricity consumption.
This range of measures will enable the Principality to evolve towards a responsible society, more moderate in its energy consumption, relying in particular on renewable energies.
Here are a few projects that perfectly meet these new requirements/demands:
45G: "A building with a contemporary face on rue Grimaldi" is how Groupe Second presents its new project. Indeed, located at 45 rue Grimaldi, this new building uses "white stone cladding and a soft, supple aesthetic in its lines to fit in with the architecture of Monaco and this emblematic street.
The 16-storey building will offer 72 flats, including 2 penthouses with swimming pools on the roof terrace, with cellars and parking spaces in the 7 basement levels.
Villa Portofino : Villa Portofino is a 10-storey luxury residence located on Rue Princesse Florestine, in the historic district of La Condamine. The 10 three-bedroom flats are ideally designed for families and the top floor will be crowned by a luxurious penthouse. Delivery of Villa Portofino is scheduled for June 2022.
New Princess Grace Hospital: This project has obtained the "High Environmental Quality" (HQE) certification and includes a landscaped concept with green roofs, terraces and planted patios and greening of the car park facades. The solar collectors on the roof and the high performance heat pumps will contribute to the use of renewable energy.
The quality of care is one of the Principality of Monaco's assets and the capacity of this future CHPG has been designed to meet the needs of the Principality's population and the inhabitants of a catchment area stretching from the Italian border to Villefranche-sur-Mer, i.e. almost 125,000 people. With the construction of 394 beds, the new hospital is designed to meet the needs of the coming decades.
This new centre is designed to offer the same quality of care to the world. To meet the demands of the wealthy clientele, the project provides services and a "VIP" environment including suites offering the highest level of hotel services. For hospital stays, the new building will offer exclusively single rooms with bathrooms, the majority of which will benefit from large windows with a view of the sea and the bay of Monaco.
The hospital's surroundings will be given special treatment. A belvedere overlooking the sea will run alongside the building, covering 3,500 m2, making it ideal for visitors and carers to stroll around. Hanging gardens facing the sea, adapted to functional rehabilitation, will be reserved for patients. High-standing lounges with a large planted terrace will be located on the roof.
A visit to the hospital is always a step imposed by our health condition in the design of the new hospital, with the patient and his relatives at the centre of the project.
The Principality benefits from incomparable assets that attract talent and entrepreneurs from all over the world. These assets are promoted by the Prince's Government through a dynamic attractiveness policy. The excellence of the healthcare system is a major asset in this scheme.
For more information, please contact consulting@rosemont.mc