Real estate

Monaco – the leader in the cost of luxury housing

The most expensive in the world was recognized elite housing located in Monaco. At the cost of luxury apartments, the principality ahead of London.

In the second quarter of this year, the value of elite residential real estate in Monaco increased by an average of 30% and reached 83.6 thousand dollars per square meter. In the capital of Great Britain, a similar indicator grew by only 1.8% and amounted to about 67.7 thousand dollars per square meter.

The decline in buyers’ activity in the elite housing market is explained by the negative consequences of the global credit crisis that began in 2007. In particular, demand for housing from the financial sector plummeted after British banks began to cut wages for their employees.

A year ago, a similar study by Knight Frank showed that the cost per square meter of housing in central London exceeded 64 thousand dollars (more than in any other city in the world). Monaco took the second place (about 47 thousand dollars per square meter), New York – the third (more than 34 thousand dollars).

Prices for elite real estate in Moscow have recently grown ten times faster than in London. In the second quarter of 2008, the cost of expensive housing in the Russian capital increased by 18% compared to the same period in 2007 and amounted to 17 thousand euros per square meter.

In the main city of Great Britain, real estate grew in price by only 1.8%, but the cost per square meter reached 44.6 thousand euros. At the same time, London lost the first place in the ranking of settlements with the most expensive housing. The leading position in this list went to Monaco, where elite real estate for the second quarter of 2008 has become more expensive by 30% – up to 51 thousand euros per square meter.

Experts note that the premium property market is in recession around the world. The reasons for this are the ongoing financial crises, the shortage of loans, according to Interfax. The situation was aggravated by the reduction in salary costs by some large companies, whose management fears further deterioration of economic conditions.

Elite housing prices worth at least ten million pounds continue to rise. The popularity of villas on the French Riviera and in the Alps is increasing. “One square foot of luxury real estate in London, Monaco and New York is estimated at no less than seven thousand pounds.”

Recall that the Russian capital is not much behind. Moscow ranks sixth in the list of cities in the world with the most expensive housing, second only to Monaco, London, the French town of Cap-Ferrat, Courchevel and New York.

At the same time, tourists from other countries are showing increasing interest in the capital of Russia. The number of foreigners visiting Moscow grew by 18% to 1.9 million in the first six months of 2008.

The capital of Great Britain gave Monaco the first place in the ranking of cities with the most expensive elite housing. Moscow takes a very honorable sixth place.

The most expensive housing from the category of “elite” is in the tiny principality of Monaco, a little cheaper – in London. Following the capital of Great Britain is followed by the French Cap-Ferrat, who got all the boredom of Courchevel and bustling New York. Our beauty Moscow in the ranking of the most expensive elite housing is located in sixth place.

Data on price changes in the elite apartment market has been published by the housing research department of the consulting company Knight Frank. The report says that the average price per square meter of housing in the most expensive houses and apartments in London increased by 1.8% – up to 44.6 thousand euros per square meter, while elite real estate in Monaco went up by 30% to 51 thousand euros per square meter. It is believed that London lost first place in the ranking of the most expensive real estate due to layoffs and a planned reduction in bonuses in the banking sector.

The premium property market is in recession worldwide, says Liam Bailey, director of housing research at Knight Frank. This circumstance is associated with a lack of loans and worsening economic conditions. So, in August, the average housing price in the nine most expensive areas of London fell for the first time in 5 years due to the fact that companies began to cut staff costs, fearing an impending recession.

On the other hand, the popularity of villas on the French Riviera or chalet in the French Alps is increasing. Prices for premium real estate also continue to rise, which costs at least £ 10 million per property: in London, Monaco and New York, a square foot of such housing in the primary or secondary market costs at least £ 7,000 (1 sq. M.) = 10.76 sq. Ft.).

Moscow was lucky to become one of the 10 cities in the world with the most expensive real estate. There she takes 6th place, behind Monaco, London, Cap Ferrat (France), Courchevel and New York. At the same time, the average cost of elite housing in the II quarter of 2008 increased by 18% compared to the same period last year and amounted to 17 thousand euros per square meter.

What pleases is the Knight Frank analysts’ confidence that the current financial crisis does not threaten the prices of luxury housing in Moscow. He argues that there are no economic prerequisites for the alleged crisis, except for artificially created panic: next year, the cost of a meter will stabilize, and then a significant increase in prices for elite housing will follow due to a decrease in construction volumes.

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