With space ever at a premium in the Principality, the National Council and Monaco Government have agreed to a deal to sell a portion of public land in the Larvotto neighbourhood to developer J.B. Pastor & Fils as one half of a reciprocal transaction. In return, the State will acquire a separate lot in the Jardin Exotique district in order to build new state housing.
A pivotal legislative session was held in Monaco just one day after the re-election of Thomas Brezzo as President of the National Council for a second term. On 3rd April, Monaco’s elected body and its government came together to push through two key laws that will have a decisive impact on the Principality’s urban landscape and its housing market.
See more: Thomas Brezzo secures second term as President of Monaco’s National Council
At the centre of these events was real estate—more specifically, a strategic land exchange that will result in new residential buildings in the seafacing Larvotto neighbourhood and the north-western Jardin Exotique quarter of Monaco.
Monaco’s resident population is on the rise, and the number of native Monegasques is growing too. Both trends are adding to the pressures on the Principality’s housing market. While it is more expensive to buy property in Monaco than ever before, there are also numerous Monegasque families and individuals in need of state housing. In February, it was revealed that although nearly 200 state-owned apartments were allocated to Monegasque citizens during the latest round of the Commission for the Allocation of State Housing, 40% of applicants remained on the waiting list.
Read more: Nearly 200 new state homes assigned, but demand outpaces supply
So it will be welcome news to many that the National Council and the Monegasque Government have been working in tandem to find solutions to these problems. In a public meeting on 3rd April, a new plan was announced involving a land swap in two very different parts of town.
Part I: Larvotto
The cornerstone of this move is the decommissioning of a 305m² parcel of public land located in the Larvotto district.
Tucked between Boulevard du Larvotto and the Le Formentor building, and bordered by Villa Larvotto No. 1 and the headquarters of the Société Monégasque des Eaux, the site is part of a 1,600m² public garden. Though relatively small in size, its value is immense—both financially and symbolically. The land will be sold to the developer J.B. Pastor & Fils for €80 million.
In place of the garden, which has limited public access and use, the developer will erect an 11-storey private residential building, bringing new high-end housing to the area, along with other perks.
See more: Property prices climb to record heights in Monaco
“The real estate transaction will allow for the creation of a public, planted pedestrian plaza at the foot of the building, with a surface area of approximately 242m², and the public garden, which is difficult to access, will be redeveloped with a view to increasing its value,” said National Council member Mikaël Palmaro of the operation.
Part II: Jardin Exotique
This transaction is just one half of a reciprocal operation. In exchange, the State will acquire from J.B. Pastor & Fils the plots currently occupied by the Le Prestige building and eight associated parking spaces in the Jardin Exotique district for €70.7 million.
Located at 25 Chemin des Révoires and straddling the Franco-Monegasque border, this site will be cleared for a public housing development. The Government plans to demolish Le Prestige and build a state-owned residential complex offering between 76 and 90 apartments, along with office space.
Read more: The faces of Monaco: census reveals who really lives in the Principality
The acquired land is important not only for its size and location but also because it adjoins a property owned by the Autonomous Pension Fund (CAR). The State has already received agreement in principle from the CAR to integrate this neighbouring land into the future construction site, pending the results of a call for development proposals that will be launched shortly.
While the housing projects in Larvotto and Jardin Exotique took centre stage, another milestone was also achieved at the meeting. A long-awaited overhaul of Monaco’s corporate legal code was adopted, introducing new types of business structures, accelerating the company permit process, and modernising corporate governance rules. These reforms will make Monaco more business-friendly, but the night’s most immediate and tangible impacts lie in real estate.
Read related:
Monaco’s real estate market soars to €5.9 billion amid surge in new property sales
Monaco Life is produced by a team of real multi-media journalists writing original content. See more in our free newsletter, follow our Podcasts on Spotify, and check us out on Facebook, Instagram, LinkedIn and Tik Tok.
Photo credit: Stéphane Danna / Monaco Communications Department