Since the announcement that 7 hectares of completely new land is to be recovered from the sea, investors are lining up to get involved with the 600,000 sq metres of residential space that will be created in the Principality.

Monaco has become a very interesting place in to buy a residential property since along with residency most investors qualify for the coveted tax-free status that Monegasque residency confers.

Work has already started on the new district which is to be called ‘Le Portier’ or the ‘doorway’. It will extend from the rear of the Fairmont hotel in a peninsula shape and end near the Grimaldi forum conference and exhibition center.

The survey ships are already taking detailed measurements of the density of the sea floor so that correct amounts of landfill can be arranged.

Several local contractors like Pastor, Garelli and Al.Ber.Ti are in the running for parts of construction process. It’s evident now that the speed of this development will be impressive and the local construction industry is gearing up to make this National extension their top priority.

The acute shortage of residential properties in Monaco has led to hyper price inflation in the last 4 years. As other parts of the world become more wealthy, many entrepreneurs want to move their home and families to this extremely clean, well organised and very safe environment.

At this time ( June 2008) it is not possible to find a studio of 30 sq metres for less than €1.3m. Of course a family would need a much larger space and a 3 bedroom apartment will average €5-10m.

Since the construction cost is comparatively low compared to the selling price, there is a lot of money to be made buying apartments off the plans. No matter that there is this instant availability from 2014, Monaco will always have more demand than supply given the tiny size of the principality.