| nnual yacht show in Monaco always guarantees | | | | but a combination of events have conspired this year |
| Europe’s second smallest country’s | | | | with a possible stagnation in prices for 2005, and |
| hotels are full, and this year will be no exception. | | | | potentially even a fall. |
| The show has grown in popularity over the fifteen | | | | The passing earlier this year of the popular Prince |
| years since it began, and this year will see | | | | Rainier, Europe’s longest reigning monarch, |
| Monaco’s Port Hercules play host to over | | | | cast a cloud over the area which it is just emerging |
| ninety of the world’s finest yachts and five | | | | from, but economic factors have also played a |
| hundred of the world’s best yachting | | | | significant role in the downturn of the real estate |
| companies. | | | | market. |
| The luxury yachting market has tripled in the last | | | | ‘The strength of the Euro against the |
| eight years, and helped along by orders from | | | | American dollar has led many of our potential buyers |
| Russia’s ‘nouveau riche’, the | | | | from the US to delay their viewing visit from this |
| industry has seen an increase in orders of over a | | | | year to next, and earlier this year another source of |
| quarter in the last year alone. | | | | important buyers from the UK held back until after |
| But while luxury and Monaco are often associated, | | | | the election to see what the outcome would |
| poor sales and a possible drop in property prices | | | | be’, explains Henri, adding ‘and now |
| haven’t been seen in the Prinicpality’s | | | | with the uncertainty of the economy after the |
| real estate sector for over a decade. | | | | recent tragedy of Hurricane Katrina it is quite possible |
| Monaco Real Estate | | | | that some US buyers will delay their visit even more, |
| In contrast to the highly successful Yacht Show, | | | | or possibly to cancel buying in Monaco |
| property sales in Monaco have been unusually slow in | | | | altogether’. |
| 2005. Although only a square mile in size there are | | | | Monaco Grand Prix |
| over a hundred estate agencies battling for buyers | | | | No surprise then that while the tourists will be in |
| to choose their services, and at times it seems that | | | | Monaco in the same and possibly increased numbers |
| every third or fourth retail unit has been | | | | than last year, the prospect of several dozen |
| commandeered by a property company in Monte | | | | potential property buyers descending upon Monaco |
| Carlo, the best known and most sought after area | | | | and staying in her best hotels over a few days is |
| of Monaco. | | | | seen as an opportunity not to be missed by the |
| According to Monte Carlo property specialist Henri | | | | realtors. |
| Boulanger some estate agents are being squeezed, | | | | But what is surprising perhaps is that the Yacht Show |
| and are viewing the yacht show as the last | | | | is viewed as a better opportunity than the Monaco |
| opportunity to turn a dismal year into a good one. | | | | Grand Prix for her realtors. |
| ‘The yacht show attracts a wealthy clientele | | | | ‘The Grand Prix attracts tens of thousands |
| in considerable numbers, and the type of person who | | | | of people to Monaco every May’, explains |
| might be buying a luxury yacht might well be thinking | | | | Henri, ‘And every April we get a lot of new |
| about buying a property in Monaco as well. | | | | enquiries for property in Monaco, with the buyers |
| While it wouldn’t be etiquette to actively | | | | asking to view apartments in Monte Carlo with views |
| pursue buyers, many estate agents in Monaco are | | | | of the race circuit during the Monaco Grand Prix |
| desperately hoping to see their doors open and for | | | | weekend. But what they don’t realise is that |
| one or two potential buyers to call into their offices. | | | | many of the apartments for sale have been rented |
| With good two bedroom apartments starting at over | | | | out for the weekend, and viewing is impossible. |
| a million Euros, and penthouses with Mediterranean | | | | Even if an apartment hasn’t been rented out |
| views often over five million and some of them over | | | | for corporate hospitality it would take all day to get |
| ten million, it can take just one sale to turn a bad | | | | from one apartment to another. The Grand Prix is a |
| year into a good one.’ | | | | great tourist event for Monaco, and some of the |
| Monaco’s property price inflation has often | | | | estate agents go away for a few days. They |
| risen by over ten per cent a year in the last decade, | | | | won’t be doing that during the Yacht Show! |