The Real Deal New York

How Monaco deals with a housing shortage: build a $2.4B neighborhood in the sea

The new housing development is projected to generate more than $4B in revenues
May 20, 2018 10:00AM

(Credit from back: Pixabay, Sergey Tchernyakov)

Right now, the foundations of Portier Cove are underwater, invisible except for the screens that have been erected to shield tourists from even the sight of construction and the sensors placed throughout the city to measure noise from the project.

But, by 2025, the new 15-acre plot, designed by architect Renzo Piano, will be home to the residents of 10 villas and 120 luxurious apartments that will be spread over the reclaimed land, according to Bloomberg. The new neighborhood is estimated to generate $4.1 billion in revenue and increase Monaco’s land mass by 3 percent.

Portier Cove was conceived to ease the shortage of housing in the principality–Monaco doesn’t tear down old buildings–as well as offer modern amenities and contemporary design for buyers who aren’t necessarily keen on paying top dollar to live in historical properties  circa the 1970s.

The cove’s new 16,000-square-foot villas, when complete, are estimated to sell for more than 30 percent the price of an average home in Monaco, which is currently pegged at about $5,600 per square foot. But the government’s project director Jean-Luc Nguyen expects real prices to be much higher; he predicts buyers will face steep bidding wars over the limited stock of newly-built homes. [Bloomberg]Erin Hudson