Monaco’s Government is seeking sweeping new powers to intervene in property sales, restrict changes of use and control redevelopment on the Rock, warning that growing real estate pressure threatens the historic neighbourhood’s identity. 

Home to the Prince’s Palace, the Cathedral, the National Council, the Town Hall and the Palace of Justice, the Rock is not only the historic seat of Monaco’s institutions but also a residential neighbourhood where Monegasque families have lived for generations. The Government argues that growing property speculation and commercial development threaten this balance, putting an important part of the Principality’s heritage and national identity at risk.

The bill, submitted to the National Council on Tuesday 6th October, would introduce a new legal framework to protect Monaco-Ville, including its historic buildings, residential properties, local businesses and public spaces.

Presenting the legislation to elected representatives on Wednesday, the Minister of State argued that existing laws were insufficient to prevent the gradual transformation of the Rock from a residential neighbourhood into an area increasingly shaped by property investment and tourism.

The Government pointed to successive property acquisitions, proposals to convert homes into short-term furnished accommodation, the replacement of neighbourhood shops with businesses catering primarily to visitors, and major renovation projects that could ultimately change how properties are used.

While individual developments may comply with existing regulations, the Minister warned that their cumulative impact could fundamentally alter the character of Monaco’s oldest neighbourhood.

New powers over property sales and development

At the centre of the proposed legislation is a new right of pre-emption, giving the State priority to purchase certain properties when they are put up for sale. The proposed powers would also cover transactions involving shares in property-owning companies, businesses and leases within the protected area.

The legislation would also introduce tighter controls over the use of individual premises, with particular attention to the conversion of residential properties and the types of commercial activities permitted.

A third measure would strengthen State oversight of construction, demolition, alterations to historic buildings and development of open spaces.

The protected perimeter would cover Monaco-Ville, including its ramparts, surrounding slopes, cliffs, gardens and the Chemin des Pêcheurs. Its precise boundaries would be detailed through a Sovereign Ordinance.

Existing property projects will not be overturned

The proposed legislation raises important questions for property owners and developers who have already invested in Monaco-Ville.

Addressing those concerns, the Minister acknowledged that the Government itself had approved several developments on the Rock in recent years, including projects already completed, under construction or awaiting implementation.

He insisted that the new legislation did not represent a reversal of those decisions.

Under Article 49 of the proposed law, property transactions covered by qualifying preliminary sale agreements concluded before the law’s publication would be exempt from the new pre-emption rules.

Existing planning permissions would also retain their validity, while legally established uses and commercial activities could continue and be transferred without requiring fresh authorisation.

The Minister further stressed that the proposed right of pre-emption would not amount to compulsory acquisition.

Property owners who disagreed with the State over a proposed purchase price would retain the right to withdraw their property from sale without penalty. Any acquisition against an owner’s wishes would have to follow Monaco’s existing expropriation legislation and its legal safeguards.

Government demands urgent vote by 16th October

The legislation has also become a source of tension between the Government and National Council. Submitted under an emergency procedure requiring debate to begin by 13th October, the 50-article bill is instead scheduled for debate and a vote on 16th October. The Minister of State criticised the delay, insisting that the National Council must meet its revised deadline without further postponement. He warned that property transactions, changes of use or planning permissions secured before the law takes effect could escape the proposed restrictions, undermining efforts to protect the Rock.

The Government maintains that the proposed law is intended to manage future development rather than prevent investment in Monaco-Ville. It would also introduce additional oversight, including a public register of properties acquired through the State’s new pre-emption powers and a report to the National Council every three years on the law’s implementation.

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Photo credit: Benjamin Vergely