A property valuation expert, Léonore Pfefferlé heads Nemesis Expertises Immobilières, a Monegasque firm renowned for its work with banks, institutional investors and private clients. At the heart of a confidential, atypical and tense market, she rigorously deciphers valuation mechanisms, perception gaps and weak signals to watch out for in order to anticipate developments in the Monegasque market.
In Monaco, the confidentiality of transactions makes it very difficult to access data. Some buildings offer sufficient historical data, while others offer virtually none. In these situations, our first step is to broaden the scope of our research, while remaining strictly comparable: same neighbourhood, same period of construction, same level of amenities. Once this expanded database has been established, we make fine adjustments: view, floor, sunlight, noise pollution, immediate environment, upcoming urban projects. In Monaco, there are no official discount scales as there are in France; expertise is therefore based on experience, market observation and qualitative analysis.
Yes, very regularly. The market value, which corresponds to the value of the property at a given moment in time, is systematically provided. But for institutional clients, we also incorporate liquidity values. The quick sale value, generally over a six to twelve-month horizon, allows us to anticipate the need for an accelerated sale.
The forced sale value, meanwhile, is used in situations of significant financial or legal constraints. In such cases, discounts can vary from 5% to 25% in Monaco, depending on the type of property.
We also produce projected values, particularly for properties undergoing renovation or restructuring, in order to assist banks with the financing of property development projects or private clients.
International standards are an excellent working basis and offer essential global recognition. However, Monaco requires major structural adjustments.
The main one concerns the calculation of surface areas. Unlike international standards, walls, balconies, loggias and terraces are included in the surface areas valued in Monaco, according to specific weightings. This difference is fundamental and has a direct impact on the final valuation.
Yes, very clearly, and it is an everyday phenomenon.
This gap is based on two major confusions: that between value and price, and that linked to the emotional factor. The advertised price generally includes a margin for negotiation and commissions. The value, on the other hand, is net, excluding costs and affect. Added to this is a very strong emotional dimension in Monaco: family history, perceived prestige, the ‘symbolic’ top floor. These are all emotional factors which, for some owners, can double the estimated value… without any real economic basis.
Technical obsolescence is a real issue, particularly with regard to electrical installations that are still non-compliant. When upgrades are necessary, they can represent a risk for the occupant and a significant cost for the purchaser, sometimes for the entire building.
From an environmental perspective, although data is still incomplete in Monaco, the difference in value between a renovated property and an unrenovated property can be as high as 10 to 15%. We factor these risks into the final value either through discounts or by deducting the cost of the necessary work.
At this stage, there is no formal discount. However, European banks are increasingly required to finance assets that meet acceptable environmental criteria.
As a result, financing conditions for the same property can vary significantly depending on its energy and environmental profile. So, it’s not yet a visible discount on prices, but indirect pressure via credit, which could ultimately influence the value of less virtuous assets.
Historically, yes. Today, the reality is more nuanced. The clientele is younger, more mobile and often multi-resident. Dubai, London, New York and Shanghai are among the possible alternatives. But Monaco still has unique advantages: security, taxation, healthcare and education. These are all factors that are difficult to find elsewhere. The ‘no alternative’ nature of Monaco has diminished, but it is still very much a reality.
There are two main indicators:
The health of the rental market: a shortage of supply, the disappearance of rent negotiations, and strong demand for certain types of property.
The length of time properties remain on the market: when a significant number of ‘standard’ properties remain on the market for a certain number of months, this may signal a transition phase.
Political and macroeconomic factors are much more difficult to interpret in Monaco, as recent experience has shown the market’s ability to absorb shocks that were predicted to be major.
