They are two of the most prestigious swathes of real estate in the world, and each offers high-net-worth real estate buyers unique lifestyle and investment opportunities.
London is seen by many as the capital of Europe, and one which offers an enviable combination of political stability, relative safety, outstanding educational and cultural amenities, business opportunities, and a cosmopolitan urban lifestyle.
Measuring less than one square mile, Monaco is the world’s second-smallest sovereign state after The Vatican. With a population of almost 40,000 this playground for the international jet set is incredibly crowded and, since the 1950s, developers have been building upward, creating a skyline densely packed with skyscrapers.
But despite its diminutive stature Monaco punches above its weight. Its very generous tax regime has been a magnet to the world’s wealthiest for generations, its stock of luxury property has been increased thanks to a new land reclamation programme, security is tight, and its shops, nightclubs, restaurants, and cafes, are predictably upscale.
A prime property market comparison shows that you get considerably more bang for your buck in the British capital than you will find in the principality. According to Knight Frank’s latest Wealth Report a luxury property investment of $1m will buy you just 16 sq meters of real estate in Monaco, compared to 33 sq meters in London.
It is also true that there is far more variety for those buying property in London. Monaco’s real estate market is dominated by new-ish apartments, whilst London has homes of all eras, shapes and sizes, and a wide choice of neighbourhoods, each with their own history and character.
In terms of investment potential both London and Monaco are safe, secure, desirable locations to live – it is hard to imagine a time when people won’t aspire to be there – although their high prices means that neither option offers the potential for the kind of exponential seen in more emerging markets beyond Europe.
Fans of Monaco talk about its balmy climate, its thrumming social scene, and its beaches. Crime is negligible, and there are very good international schools both in the principality and over the border into France. Annual events include the Monaco Grand Prix, and festivals dedicated to everything from superyachts to show jumping.
On the flip side Monaco lacks diversity, its narrow streets packed with tourists and idling supercars can be a trial, and its scale means that there is a limited choice of things to do. Many Monaco owners feel the need for a property on the Côte d’Azur or Italian riviera, so that they can escape at weekends.
From a property perspective, a lot of Monaco’s stock is very dated and will need considerable renovation. There are few highly serviced buildings, which means finding a home with a lift and sports facilities will be tough. And although there are some beautiful historic villas in Monaco they tend to be kept for decades – generations even – and rarely come to the market.
An exception to all this is Mareterra, an ultra-luxury €2bn development of 120 flats and 14 houses on a 14 acre strip of reclaimed coastline. Most of the homes were sold by the time it was completed, in late 2022, at prices approaching €100,000 per square meter.
London certainly can’t compete with Monaco when it comes to sunshine and beach clubs, but when it comes to lifestyle it is simply in a different league. Its schools and universities are amongst the best in the world. It has an endless choice of art, music, and theatre of all genres. Its nightlife is legendary and its restaurant scene has undergone a revolution in the 21st century.
Like Monaco, traffic is heavy. Crime is a big issue in all world cities, but London feels safe to live and work in.
House hunters will find themselves with an embarrassment of riches to choose from. London has dozens, possibly hundreds, of different neighbourhoods – from grand, stately Knightsbridge, to hip, slightly bohemian Notting Hill, to the villagey vibes of Hampstead. Buyers can choose between a brand new apartment in a state of the art building with plentiful amenities, or a hundreds-of-years-old house, and everything in between.
Monaco is a bone fide tax haven where only French citizens pay income tax and business rates are low. Around one in three of its residents are millionaires, and many have a very high profile, from F1 star Jenson Button to musicians Ringo Starr and Bono, and tennis legend Bjorn Borg.
Buying costs, including notary fees, come in at around six per cent, rising to 20 per cent if you opt for a new build home which attracts VAT. Agent fees usually add around three per cent.
The UK is considerably less welcoming to wealthy overseas buyers.
In April 2025 the long-running non dom system – which allowed international residents whose main home is overseas to pay tax only on money earned in the UK – was dismantled. It is being replaced with a residence-based regime which brings foreign earnings into the UK inheritance tax system. Many non doms have voted with their feet and left the country as a result.
Buying costs in the UK start with Stamp Duty, which was increased in 2024. International buyers of second homes pay up to 19 per cent of the value of their home in buying tax. Estate agent fees are negotiable, but are usually 1.5 to three per cent of the property value.
In terms of price growth Prime Central London, after exponential price growth from around 2011 to 2014, has floundered. A series of blows – from Brexit to the pandemic – have suppressed the market and according to the latest research from Savills, prices in PCL are almost 21 per cent lower today than they were during the peak of the market in 2014.
However Savills does see hope on the horizon, and is forecasting PCL price growth of 9.6 per cent by 2029. It expects outer prime London to fare a little better, with price growth of almost 15 per cent in the same period.
Whilst not immune to global headwinds, Monaco’s prices have remained on a broadly upward trajectory since 2006, according to Savills, propped up by high demand and very constrained supply. Prices jumped €15,000 per square meter in 2006 to €53,000 in 2022. Since then prices have fallen back, slightly, to €51,000 – suggesting Monaco’s long run of price growth may finally be coming to an end.
Weighing up the pros and cons buying property in Monaco or London is very much a case of head versus heart.
London’s market has been in the doldrums for years, and no pundits are suggesting it is going to start booming any time soon. Monaco has enjoyed a long run of price growth although there is recent evidence that growth is faltering.
As a bottom line buyers whose top priority is reducing their tax burden will likely find Monaco the smartest option.
For those looking for a place to spend time in, whether to holiday, work, or educate their children, London’s breadth of choice makes it the obvious winner.
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