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Tips on Choosing Properties to Invest In

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Widely known all over the world for having one of the most expensive real estate markets, the Principality of Monaco is not only a French Riviera gem for the affluent, but it is also a shining paradise that promises significant returns for real estate investments. One prime example of why is that over the last ten years, property prices in the small city-state rose by 52 percent, according to data published by the Monegasque Institute of Statistics and Economic Studies.

Looking to make a property investment? Choosing what to invest in is crucial to harnessing the full potential of your capital. And if you need help with that, read this guide on how you can choose the right type of properties to invest in.

Thinking of buying property in Monaco? Now is the best time to get started on making a move on one of the best places to invest in real estate on the planet, as the small city-state continually records significant returns on investment over the past couple of years.

According to the Real Estate Observatory report published by the Monegasque Institute of Statistics and Economic Studies, the average price per square meter for real estate in the principality increased by a whopping 52 percent over the last decade. Additionally, property prices in Monaco slightly dipped in 2020, which makes investing now a viable decision.

How do you choose which property or properties to invest in? Consider these tips.

Know your investment goals.

One of the most important things that you should do before you start sifting through property listings for your real estate investment is to know your exact investment goals. Do you intend to live in the property? Do you want to do renovations to flip it in a year or so? Or do you want to put it up for rent or lease? Knowing what you hope to achieve through the investment will help you:

  • Decide the best type of investments to focus on, such as making an investment on apartments or making an investment on commercial property
  • Filter through the myriad of options and not get sidetracked
  • Avoid choosing the wrong type of property for your short-term and long-term goals; and
  • Plot post-purchase steps to maximize potential returns on your investment

Read up on market trends in the area.

It is also necessary that you arm yourself with the knowledge that you need to be able to make informed decisions. When investing in Monaco’s real estate, for instance, you should spend some time reading up on the market trends in the area to prepare yourself and your investment.

In 2020, for example, sales for studios and 2-bedroom apartments declined, while sales for apartments with at least three rooms picked up by more than 18 percent, compared to 2019. Equipped with this information, you can venture into analyses of why sales trends have changed, the factors that have contributed to the changes, and future projections.

Similarly, you can get to know your target demographic better, and help make sure that you design strategies that will turn your property investment into a profitable option for buyers or tenants.

Choose the right location to invest in.

Knowing where to invest is as important as deciding on what type of property to invest in. In Monaco, the district of Larvotto recorded the highest increase in average cost per square meter in 2020, while Les Moneghetti saw the biggest decline in property price per square meter. Meanwhile, other districts, such as Monte Carlo and Fontvieille saw marginal increases.

In addition to discovering property price trends in districts, it is also vital to factor in vacancy rates. The lower the vacancy rate in a given district, the lower the chance of your property sitting empty. Capital growth is also another telling sign, as properties that are located in places that see the most significant changes in population size, local infrastructure development, and others tend to be more profitable.

Keep an eye on the future.

While it is crucial to stay grounded in present realities when making investments, you should also not discount the value of preparing for the future. When choosing your specific property and its location, try and see if there are established future plans for the area. This will help you better determine if your investment will be well-rewarded in the coming years, or if it will stagnate and you will lose out on potential returns.

Partner with a trusted real estate company.

Finally, enlist the assistance of realtors in Monaco that especially cater to real estate investors like you. Doing this will help ease the complexities involved in the process, particularly in navigating the technicalities of purchasing a property in the city-state, if you are not a resident. Additionally, you can get guided recommendations on where you should invest, as well as what type of property to invest in.

Local realtors like Spark and Partners also draw from extensive experience to offer deep knowledge on the real estate conditions that are unique to the Principality of Monaco. In this way, you can be assured of getting information that will help shape your decision-making, as well as ensure that you harness your capital towards the most optimal results.

Spark and Partners also has two other offices in the French Riviera, so if you’re looking to expand your investment beyond Monaco, you can turn to them for expert help. And a bonus? You are assured of working with a world-class team that delivers exceptional customer service, from start to finish. Get in touch with us here.

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