The term ‘family office’ is frequently heard in the echelons of Monaco; indeed, the Principality boasts one of the highest concentrations of family offices in the world, with more than 50 headquartered in the diminutive sovereign state. But what exactly are they, and how can they benefit from a close relationship with Monaco real estate brokers?
What is a Monaco family office?
A family office is a private wealth management company that looks after the investments of ultra-high-net-worth individuals and their families. But their work doesn’t just stop there, which is how family offices can be distinguished from more traditional wealth management firms.
Instead of simply managing a UHNWI’s finances and investments, family offices support the individual and their family in a whole remit of other areas such as tax, budgeting, insurance and succession planning. They can also look after more general aspects of family management, such as organizing family members’ educational, travel and staffing requirements.
There are two types of family offices: single-family offices, which look after one individual and his family and multi-family offices, which support several UHNWIs at the same time.
How can family office real estate partners enhance UHNWIs investment portfolios?
A large part of the role of a family office will be to look after the family’s investment portfolio, which will traditionally consist of a series of assets such as stocks and shares, art, luxury cars, and, more often than not, a considerable amount of real estate, both commercial and residential.
And this is where a Monaco real estate agency, such as La Costa Properties Monaco, can really come into their own as key advisors to family offices based in the Principality. An experienced real estate agency can offer expert advice and, more importantly, a helpful heads up in a market that is one of the most competitive in the world. With more than 40 years of experience, La Costa Properties Monaco boasts a wealth of industry expertise and market intelligence and regularly works with family offices, supporting them with all their real estate needs.
According to the Monaco Government’s latest Real-Estate Observatory published in January 2023, more than €3.5 billion of property sales were made last year, an unprecedented figure even for Monaco. One out of every two new sales made in 2022 was worth more than €6.5 million, with one in six new flats going for more than €20 million. Meanwhile, the average price of resale property reached €5.4 million last year, with one in two transactions involving property worth more than €3.3 million.
It’s all eye-watering stuff, not least if you are looking to invest in this caliber of property but do not have your ear to the ground to know how, when or where to make the right deals.
This is where Monaco real estate brokers can assist family offices, advising from A to Z in property matters, from securing the much-sought-after dream apartment overlooking the Mediterranean Sea to selling a buy-to-let investment property in a painless, quick sale.
Thanks to a privileged partnership with a chosen real estate agency, family offices in Monaco can be drip-fed insider tips on the best properties that come onto the market, as well as off-market property scoops and industry intelligence, to ensure that they make the very best investment decisions for the families they look after.
Article by Joanna Lewis
