09 December 2014
But London and Monaco are more alike than you might think, according to a report by property firm Pastor Real Estate, which has offices in both locations.
Although London may stretch for miles north and south of the River Thames, its prime central district is subject to physical and regulatory barriers to new development which, coupled with international demand, keeps property prices sky-high. Also like Monaco, but unlike most other areas of London, the response is to build luxury medium- to high-rise apartment buildings that maximize the use of available land.
The appeal of both locations lies not just in their affluent image, embodied by luxury hotels and exclusive boutiques, but in their political stability, an important factor for wealthy individual and families from more volatile parts of the world. They can also benefit from tax advantages in London as non-domiciled residents.
Pastor Real Estate has identified seven twinned ‘city-villages’ in each location, such as Fontvieille and South Kensington, favored by owners of luxury yachts and second homes, or the hotel and shopping hubs of Monte Carlo and Mayfair.
The firm says that although prices in these areas of Monaco were 79% higher than their London counterparts in 2011, the gap has now come down to 41%. And while average apartment prices in Fontvieille are currently £3.43 million, London’s Knightsbridge is not far behind at £3.27 million, along with Mayfair at £3.22 million.