Since the opening of Mareterra in late 2024, a question comes up often in our meetings: what if we bought a new property? The new neighbourhood built on the sea has brought the topic back the foreground of the scene, and interest doesn’t wane. Buying off-plan means choosing a property that is yet to be built, based on the plans of the developer, before it has come off the ground. The process differs from buying on the secondary market, with its advantages, its steps and a few precautions that it is worth taking into account before going ahead.
Here’s, in practical terms, how it all works.
Buy a property that doesn’t exist yet
You book an flat based on the plans, you follow its construction, then we take possession of it once the construction is complete. Between the two, the payment is made in instalments, in line with the pace of the progress of the works, and not in a single instalment upon signing. We provide financial support for the construction of the building rather than tying up the entire budget from the outset.
In return for this projection, one gains access to a product that meets current standards, often customisable in terms of its specifications to such an extent that the building site allows it, and that no one has lived in it before you. Choice of materials, layout interior, sometimes combining two lots: the new leaves a margin that the old never offers ever. For many buyers, this blank page is a major part of its appeal.
How does the payment process work
This is one of the most frequently asked questions, and one of the most reassuring once you understand it. Payment for an off-plan property is made in line with the progress of the building works: a deposit upon reservation, followed by staggered instalments as the building progresses, from the foundations right through to completion, with the balance paid upon handover of the keys. You therefore never pay the full amount in advance for a property that does not yet exist: each instalment corresponds to a stage that has actually been completed. This is one of the mechanisms that makes buying off-plan secure.
A real tax benefit
This is one of the most concrete arguments in favour of new-builds in Monaco. The purchase of a property second-hand property by an individual is subject to registration duties of 4.75 per cent. For a property that is new, the transaction is subject to VAT, which is most often included in the price quoted by the developer, and the registration fees amount to around 2.5 per cent.
Given the sums at stake in Monaco, this difference is by no means trivial. For comparable size and location, the cost of purchasing a new property, including duties and fees, remains significantly lower than that of the old one. This is one factor which may weigh heavily often in the final decision.
What safeguards protect the buyer
Buying off-plan means paying for a property in instalments before you have seen it. The buyer’s protection is therefore multi-layered. Firstly, there are the instalment payments, which follow the progress of the building work rather than preceding it. Secondly, there is the guarantee that the work will be completed to a satisfactory standard. Finally, once the property has been handed over, there is a ten-year guarantee covering any defects that might affect the structural integrity of the building. New-build properties are thus among the purchases most comprehensively protected by legislation.
In Monaco, this framework is based on a market driven by some developers with an established track record and by groups with a solid financial standing, this which significantly reduces the risk that is is sometimes associated with buying off-plan. The real caution lies elsewhere, and we will return to this: in the choice of the person who is building.
A market for new products that is in full boom
Monaco has never undertaken such extensive construction within its limited space. Mareterra, six hectares reclaimed from the sea and due to open in late 2024, is the most spectacular showcase of this. But the momentum does not stop there. The Testimonio II development, with its two towers of 25 and 30 storeys and hundreds of flats, has radically transformed the offering on the eastern side. The Bay House residence, due for completion in late 2024, and more exclusive developments such as Villa Ninetta at the Jardin Exotique – comprising around twenty Belle Époque-inspired flats – demonstrate a vibrant new-build market across several neighbourhoods of the Principality, ranging from the most spectacular to the most intimate.
In terms of value, the properties built recently are at the top end of the market. According to the IMSEE, the properties built during the decade 2020–2029 are priced at an average price average of around 65,600 euros per square metre, above the average for the Principality. The new is worth the money, but it also pays off very well indeed: the scarcity of land in Monaco benefits particularly recent developments, which are sought after for their comfort and their standards.
The precautions you should be aware of before signing
New things are protective, provided you focus on the right aspects. Three of these deserve particular attention.
Firstly, the developer. As payments are made as the project progresses, the developer’s financial stability and experience are crucial. In Monaco, major developments are led by well-known players, but it remains essential to know who is actually building the project and what they have previously delivered.
The delivery schedule, next. The estimated delivery date announced may change. It is best to check what the contract provides for in the event of in the event of a delay and to ensure you have a realistic idea of the move-in date.
The features, at last. What is shown in the overview image is not always exactly what will be delivered. The technical specification, the exact floor areas, the materials, the orientation and the view as it actually is from the relevant floor are worth to be compared with the dream sold in the brochure. It is precisely there that an experienced eye avoids the disappointments.
Frequently Asked Questions
What is the advantage of buying off-plan rather than in the second-hand market in Monaco?
The nine offers a product that meets the latest standards, often customisable, with an instalment payment plan and a tax regime for purchase that is more favourable: approximately 2.5 per cent of registration fees compared with 4.75 per cent under the old system.
How do you pay for a property purchased off-plan?
In stages, as and when the work progresses: a portion upon booking, some calls for funds during the construction work, and the balance upon handover of the keys.
Is the new one more expensive than the old one in Monaco?
Per square metre, newer properties are at the higher end of the market. However, more favourable purchase tax rates and the potential for capital appreciation often even out the comparison.
What precautions should you take before buying off-plan?
Check the developer’s reputation and experience, the handover schedule and the clauses relating to delays, and compare the description of the works with what is promised on the plans. It is on these points that expert guidance makes all the difference.
What guarantees protect the buyer when buying a new item? X
Payment in instalments in line with the progress of the works, a guarantee of satisfactory completion of the works, and a ten-year guarantee covering defects affecting the structural integrity of the building.
At Agence Continentale, we guide you through both the new and the old
Since 1948, Agence Continentale has had in-depth knowledge of Monaco’s property developments, developers and neighbourhoods. Buying off-plan is a great opportunity when the project is sound, the developer is reputable and the contract is fully understood. This is precisely where our local expertise safeguards your investment, from the moment you reserve your property right through to the handover of the keys.
Please contact us to discuss this: +377 93 50 54 64, info@continentale.mc
