A highly Lucrative Business
While most of us are aware of the exorbitant per square meter prices for apartments in the principality, the underground business of private parking spaces is an equally lucrative domain. Indeed, parking spaces are significantly escalating the already staggering costs associated with real estate in Monaco. According to La Chambre Immobilière de Monaco, the price for a parking space or a private box in Monaco ranges from 150,000 to 600,000 euros – an astronomical spectrum indeed.
Over the past decade, there has been significant inflation in these prices, surpassing the per square meter price escalation. A decade ago, prices fluctuated between 150,000 and 200,000 euros, but today, they span a much wider range from 150,000 to 600,000 euros. Prices are particularly high in some neighbourhoods. Take Monaco-ville, for example – there’s such scarcity that a closed garage effortlessly fetches a million euros. As a result, negotiations are consistently in favour of sellers, who encounter no difficulty in reselling their parking spot.
A Supply that doesn’t meet the Soaring Demand
While Monaco stands as one of the safest places in the world, the preference for parking in a monitored and sheltered facility persists. Underground parking spaces, often the norm in Monaco, come equipped with round-the-clock surveillance, adding to the allure of secured parking options. The scarcity of available street parking amplifies the necessity for a secure spot, further elevating the value of such sought-after parking spaces. The quest for this prized possession – a secure and covered parking space – is the ultimate challenge within the principality.
Another challenge highlighted by L’Observateur de Monaco: owners of luxurious cars now struggle with the outdated size standards of parking spaces in the principality. Indeed, many parking spaces here are notably small. This mismatch propels prices upward for larger parking spaces. Desperate for more sizable spots, this clientele is willing to pay astronomical sums, creating a fervent demand. The current average cost for securing a ‘large’ spot ranges between 500,000 and 600,000 euros.
Finally, the soaring demand can also be explained by the increasing trend of multiple car ownership per household. As more people accumulate vehicles, the supply fails to match this surge, resulting in a continuous rise in prices.
As a result, investors, recognizing this demand, have entered the market, heightening the difficulty of acquiring parking spaces in Monaco. It’s undeniably a secure investment, demanding minimal maintenance, easy to manage, and promising optimal profitability.
Why Parking Investment is Your Next Big Move
All things considered, investing in parking spaces in Monaco can be attractive for several reasons:
- High Demand: Monaco is a small city-state with limited space. The demand for parking is consistently high due to its dense population and limited land availability.
- Limited Supply: There’s a scarcity of parking spaces in Monaco, leading to a situation where the supply doesn’t meet the demand. This imbalance can drive up the value of parking spaces over time.
- Stability and Prestige: Monaco is known for its stability, luxurious lifestyle, and as a tax haven. Investing in property, including parking spaces, in such a prestigious and stable location can offer long-term benefits.
- Potential for Rental Income: With the high demand for parking, you can potentially generate steady rental income by leasing out your parking space to residents, businesses, or tourists. Plus, it’s a profitable investment that requires minimal maintenance.
- Capital Appreciation: Due to limited space and high demand, property prices, including parking spaces, in Monaco have historically shown strong appreciation.
However, before investing, it’s crucial to consider factors like initial investment costs, ongoing maintenance expenses, regulations around property ownership and rental, as well as the potential risks. Consulting with a local real estate expert (hyperlink to contact info) or financial advisor (hyperlink to contact info) familiar with the Monaco market can provide valuable insights tailored to your specific situation and investment goals. Don’t hesitate to contact us for guidance.
Sources:
- https://www.chambre-immobiliere-monaco.mc/fr/ventes/q_Carr%C3%A9%20d’Or/grid
- https://www.immobilier-monaco.net/2022/08/09/acheter-un-parking-a-monaco-est-il-un-bon-investissement/
- https://lobservateurdemonaco.com/enquetes/les-parkings-prives-a-monaco-sont-vendus-a-des-prix-exorbitants/
- https://www.capital.fr/immobilier/cela-coute-de-plus-en-plus-cher-dacheter-une-place-de-parking-a-monaco-1489250
- https://www.solamito-properties-real-estate.com/en/buying-a-parking-space-in-monaco
