In Monaco, it appears that the saying "the rich get richer" holds true.
Bloomberg reported that the town where the rich play holds no charities; no bargains can be found in this Mediterranean playground of the rich and famous. However, another reason that the rich prefer to buy properties here is because of its super low taxes, which the truly rich know is an opportunity to thrive even more.
The real estate here is only affordable to the world's elite. However, the elite is surging in ways which no one expected. The French Mediterranean town offers luxury and more, leading to a demand that drove secondary market prices to $4,560 per square foot. This is an increase of 18.1% from the same prices and period in 2017. These transactions amounted to $3 billion.
The interest is driven partially by exclusive apartments with lots of space due to their sizes. The demand drove sales to $5.5 million, which was a record in 2018. The number of sales reached almost double the number which was recorded in 2013. Analysts also pointed out that the sales surge had effectively placed Monaco on top of Hong Kong as the city with the most expensive property market in the world.
Competing with Monaco and its super-exclusive apartments is no mean feat, but other locations are making ways to make their assets as attractive as these apartments. According to the New York Times, New York has an answer; in Manhattan, there have been units that are marketed creatively. One such apartment has a home in the Hamptons as well as three luxury cars included as incentives.
There was a time, historically, when penthouse suites in New York were considered incentivized. The superluxury buildings of today come with higher prices, but with even more extravagant incentives. Buyers may shy away from these units with their sky-high prices, but not if they are given "impossible" incentives, such as seats on a future spaceflight, along with cars and luxury summer houses.
Jonathan Miller from the Miller Samuel appraisal firm has called it the "trophy market" or a rare segment of the market. Whatever way investors look at it, the Manhattan address has become comparable to Monaco in the world of asset building. The homes here and different apartments have become sought-after for wealthier investors and home buyers.
Buying a property in Monaco, however, is more attractive since the taxes are light, and the views are superb. Manhattan and the other super-luxurious areas are fighting back by presenting real estate properties that are incentivized. Whether with the incentives or not, there is something about owning a property in these areas.
