Monaco remained the most expensive luxury residential market in the world in 2019, according to a recent report by Savills. But how much has Covid-19 impacted that position?
Monaco Life spoke to Mike Powers, Director of luxury real estate agency Powers Properties, for his perspective on the current state of the property market.
Monaco Life: How much of an impact do you expect Covid-19 to have on the residential market in Monaco?
Mike Powers: Monaco is clearly a sellers’ market and these sellers are not in a hurry to sell and can afford to sit on their properties. Of course, there might be a few owners who are forced to sell, but overall we expect the market to stay stable with fewer transactions for the rest of the year.
Has there been any activity at all during the lockdown from prospective buyers and sellers?
There has been some rental activity, but we have noticed a large decrease in sales.
What has the situation been since the lockdown was lifted?
There are a lot of buyers looking for blood, but few sellers are bleeding. The sea extension is drawing attention as well as a few other developments. But travel restrictions are making it difficult for foreign investors to access Monaco.
What impact has the lockdown had on the construction of new builds and how will this affect the market?
Overall, most construction sites were affected but we don’t expect delays to be more than a few months.
How will the Monaco property market be impacted in the future?
With the global economy going into potential depression, it is quite difficult to evaluate the impact. However, Monaco is more attractive than ever. It’s medical system has been very professional, efficient and proactive during the crisis. The government reacted very quickly with strong measures towards local businesses and employees.
In addition, the rising security issues in many foreign countries makes Monaco more and more attractive.
Do you expect the property market to bounce back quickly?
I think the Monaco market will stay stable unless we are faced with a second wave of this coronavirus. The rest of this year will be a period of wait and see in many ways. We will not see a drop in price like we will see in Paris, London and other major metropolitan areas.