The Monaco Grand Prix held at the end of the May shows Monaco in her full glory to the world for a Sunday afternoon, and this year was no exception as Lewis Hamilton won the race for the first time.

Monaco is known the world over not just for the best Grand Prix of the F1 season, but for million and billionaire residents, glamour…and some of the most expensive property in the world.

But with the world on on the brink of a possible recession and falling house prices both in the US and Europe, Monaco could buck the trend in the years ahead and see surprisingly big gains in prices while those around her go into freefall.

Part of Monaco’s price increases in recent years, and for the medium term future too, is that new housing being built is for locals, and a strong new supply of openly available apartments is unlikely to happen for ten years – and with strong demand and little supply it suggests further price rises are likely for this year and next.

British citizens have moved to Monaco in high numbers in recent years and as UK taxes show no sign of falling this large group is expected to swell further in 2008.

Previously a relatively small group of Monaco residents, the number of British people living in Monaco has doubled in the last three years since 2005, with some 3000 now claiming residency in Monaco.

Attaining residency in Monaco necessarily means renting or buying an apartment. The lowest priced property on the market at the moment is a 30m2 studio with a 7m2 balcony in the Fontvieille district at 720,000 Euros. With closing costs this rises to over 800,000 Euros. As well as buying a property, to gain residency in Monaco a bank account needs to be opened in the Principality, with account opening deposits varying between 100,000 and 500,000 Euros.

Mid range is a 210m2 3 bedroom 2 bathroom apartment in Monte Carlo, close to Casino Square, at 4,200,000 Euros. And at the top end is a three floor penthouse apartment in the well known Eden Star development at 25,000,000 Euros, equivalent to around 16 million Sterling.

At the opening of Monaco’s new consulate in London recently, Prince Albert of Monaco acknowledged the important contribution British people are making to his country, and said he would like to see more in the Principality. Prince Albert is particularly keen to see British entrepreneurs move to Monaco, but one travel guide for the country doesn’t think Prince Albert has fully thought through his ideal scenario.

‘Prince Albert said recently that he welcomes British entrepreneurs moving to Monaco, but that he wouldn’t be distributing leaflets on London’s streets to get more to do so. But he is missing the point. The costs involved in moving to Monaco are prohibitively high, even compared to London standards, and if he is serious about British talent moving to Monaco while we don’t expect Monaco to remove the financial barriers he could move to lower the bar a bit at least.’

A well respected US magazine recently claimed Monaco has the most overpriced real estate in the world, claiming the rental returns as part of their figures meant the tax haven’s property costs were unduly high.

In response a Monaco internet site says the American magazine are wrong, and have forgotten why Monaco’s property prices are high in the first place.

‘The error they made was comparing Monaco with places like Rome, Warsaw, Los Angeles and Vancouver, and they also overestimated closing costs. While admittedly high in Monaco at around 11 per cent, it’s not common to be 20 per cent that their research was based on.’

Monaco property buyers would find it difficult to find anything at all for 700,000 Euros, even for the smallest studio apartment, and realistic starting prices are from a million Euros.

Prices last year rose dramatically, with the Casino Square area seeing price increases close to forty per cent, and in Fontvieille, close to the helicopter pad which connects Monaco with Nice Airport, prices nearly doubled.

Overall it is thought that demand has grown by around thirty five per cent over the last five years, with few new Monaco properties becoming available to meet the new buyers expectations and putting pressure on already high real estate prices.

More information for property in Monaco can be found at both http://www.monacoproperty.net and http://www.yourmonaco.com/real_estate

When the economy is good and people are taking two or three holidays a year, letting out an overseas property and getting good occupancy levels isn’t that difficult.

And with low interest rates, the rentals will cover the mortgage and often leave enough for a profit, and at the end of the mortgage the property is owned outright by the buyer, leaving him or her with a valuable asset good for a pension, or for a retirement home in the sun. Everyone involved, the owner, the bank and the people who rented for a holiday are happy.

But in times of economic troubles the picture isn’t so happy, and it’s at these times that potential buyers should really way up if the area they are considering buying in is a good investment.

The number of people renting villas and apartments abroad drops, the mortgage payments aren’t covered, and if the owner hasn’t got deep enough pockets to pay the shortfall between the rental income and the mortgage the home is repossessed.

But even in times of economic downturns this can lead to a new generation of overseas property owners picking up properties on the cheap, ready to rent out when times get better, and perhaps sale at the top of the next economic cycle.

So where is a good place for new overseas property buyers to look for? The answer is where the holiday markets are still strong despite the recession, where rental incomes might not dip as much as in other areas.

One UK based villa holiday specialist company has analysed which areas produced best booking returns for the 2007 villa holidays season, and Spain came out top. Within Spain it’s important to know which regions – and even narrower – which areas are performing best.

The regions of Spain showing good villa holidays rental potential include the three Balearic islands of Menorca, Ibiza and Majorca. The Canary Islands of Tenerife, Gran Canaria and Lanzarote were also popular last year and expected to be so again in 2008.

On the Spanish mainland the Costa Blanca was the most popular region, the Costa Blanca being made up of areas like Torrevieja, the Jalon Valley and Denia.

Once in a region where holiday villas are for sale look for something that has general appeal but also appeals to a particular market – a golf course is a good example. Menorca is a prime example of where it could make sense to buy close to a golf course.

The island only has one golf course, Son Parc, and if an overseas property buyer was to invest in an apartment or villa close to Son Parc the occupancy rate could be higher than other parts of the island, and the rental prices could be higher than those areas further away from the golf.

Menorca is the second largest of Spain’s three Balearic Islands. The other two islands are Majorca and Ibiza, Majorca holiday villas could also benefit during any recession as it is becoming increasingly popular and taking market share away from other holiday rental destinations.

Daytime summer temperatures hover around 27C in Menorca. Lovely peaceful days are on the menu on this island, a pace that attracts holiday makers in their 50′s and 60′s – who often have the spending power to rent a villa for a week or two, helping the owner with mortgage and other costs of maintaining an overseas property.

Overall the message is clear – in times of an economic downturn be careful where you buy a holiday home if you need to take a mortgage out to finance it. Do some research – and don’t accept estate agents high occupancy levels at face value – the estate agent is after a sale and acting for the seller, not you – do your own research locally first before committing to a sale – and use a lawyer to complete the sale to try and make sure there are no hidden problems.

Tribune Properties have Menorca property advice available via http://www.yourmenorca.net/property

Buying a property in Spain has been an aspiration for many Europeans in the last twenty years, with Germany and the UK providing most buyers.

But the Spanish real estate market has hit some turbulence recently, with the Costa del Sol dropping from the favourite area to buy to least popular in just two years, leaving hundreds of thousands of holiday home owners vulnerable to a sharp drop in prices this year.

The Costa del Sol has been particularly hard hit as different negative factors came into play at around the same time – ‘land grab’ – where developers take land from existing owners with little recompense, world market jitters, and local corruption.

Another complication has hit the property market on the popular holiday island of Mallorca. Plans have been put forward for more developments, and the local populations has successfully organised mass protest against development plans which they think will destroy much of the island’s culture and heritage.

Mallorca’s economic base featured farming, livestock and agriculture before the 1960s. Before it became dependent upon tourism, Mallorca prided itself on being able to take care of itself without outside influence. The rising climate has made it hard to farm or raise livestock on the island. Limited water supplies make it difficult to maintain any kind of crop. The sparse amount of agriculture that is still done in Mallorca is in an effort to keep up with the demand from tourists, and more development could spell disaster for the traditional way of life.

According to the 2005 census, the population of the city of Palma was 375,048. The population of the entire area was estimated to be 517,285; the 12th-largest urban area of Spain. Approximately half of the total population of Mallorca lives in Palma, and it is feared that more developments will see Mallorca turned into a concrete jungle.

Mallorca started to develop as a tourist hot spot in the 1920′s. Now, Mallorca sees more than six million visitors each year, yet ninety-five percent of tourists concentrate in only five percent of its territory. Less developed areas of this elegant island are ripe for new development and prime property commands a great premium. It seems more people than ever before want to live on or invest in Mallorca, but locals fear a doubling or trebling of the full time population in just a few years, placing a strain on the island’s hospitals, schools and infrastructure, and vow to fight development plans.

A United Nations report highlights problems for both the Costa del Sol and Mallorca, showing that local authorities are over dependent on new properties being built, with some city halls receiving over a quarter of their income from property related activity – a figure only sustainable by allowing more and more new developments, which eventually run contary to the wishes of the local populations.

The report says that there has been ‘uncontrolled speculation for the last twenty years’ and contributes to a poor housing situation for Spain’s domestic market, with many developers preferring to concentrate on holiday villas and apartments to providing good standard housing for local people.

And it’s local people in different regions of Spain who might change the way the property market works in the future, more for themselves than for outsiders.

The report says that the hardest hit sections of society in the Spanish property market are the young and the elderly, women, gypsies and the disabled – and as Mallorca has seen people are pushing housing policy higher up the political agenda.

The UN report also says that some fifteen per cent of Spain’s apartments lie empty, even after discounting overseas owners.

‘The amount of housing that isn’t occupied might look alarming’, comments a Mallorca internet site, ‘But this isn’t unusual. The same could be said of London, or among the Mediterranean countries Malta for example.’

Property developers in Spain and the Spanish islands face a torrid 2008, as new developments are scrutinised more before being given planning consent, and an economic downturn threatens to drop the number of new buyers substantially.

More information for property in Mallorca is at http://www.yourmajorca.net/property and for Menorca at http://www.propertymenorca.info

An exchange rate is simply the price of one country’s currency expressed in another country’s currency. The exchange rate is the rate at which currencies can be exchanged.

A good example is that of the dollar vs. the euro. In April 2008, one dollar could be exchanged for 0.63 euros. The dollar is currently weak in exchange against the euro. This means the U.S. tourist planning a vacation in Europe or the Mediterranean probably won’t receive the best value for per dollar spent.

Many factors help determine the exchange rate of one currency vs. another. Supply and demand is only one of the factors. Each country’s government, interest rates and inflation, as well as the stock market are also contributing factors. The most trustworthy locations to exchange money are banks, exchange bureaus and ATMs. Credit cards are a viable way to spend money while traveling internationally because they offer a form of payment in nearly any currency.

The dollar and sterling are steadily losing ground to the euro. Ever-changing exchange rates are going to make international travel a bit more expensive this year. Less than one year ago you could buy ah undred euros for 67 pounds. The same transaction today costs just over eighty pounds or about $63.

International travelers are relying more and more on ATMs to exchange currencies while travelling. Most travellers say this form of exchange bypasses the exchange bureaus that often charge high commissions.

Others argue that banks offer the better exchange rate without charging unreasonably high fees. To ensure you receive the best exchange rate at the time of your planned vacation, check with your bank, your credit card company and the exchange bureau. Some credit card companies have begun charging a flat fee for overseas purchases. This fee is charged in addition to foreign exchange fees the customers already pay.

When booking your hotel internationally, look for dollar rate guarantees offered by many international hotels. This will help protect you from fluctuations in currency exchange rates. Hotels offering a dollar rate guarantee often book more quickly than those that do not. When possible, try to book your hotel several months in advance to lock in a good monetary exchange rate.

Monetary conversions will definitely take their toll on holiday goers this holiday season. Tourists will need to be more mindful of when to exchange their currency. As exchange rates change, the overall cost of the international holiday increases. An apartment that would have cost $100 per day six months ago now costs about $120 per day. Over the course of a 2-week vacation, this could determine the difference between international travel and changing plans entirely.

Recent exchange rate changes in favour of the euro could also mean more international visitors to the U.S. and Europe from other areas of the world. If the dollar and sterling continue to fall, new doors could be opened for tourists wishing to visit the U.S. and Europe.

Brits looking to enjoy an American holiday have recently been able to take advantage of the exchange rate. One pound currently purchases almost two dollars, making it advantageous for Britons who enjoy spending time in the U.S.

Those looking to purchase property overseas will also feel the pinch. Properties that previously cost the U.K. purchaser 105,000 pounds now cost 120,000 pounds due to present exchange rates. Depending on your point of view, current exchange rates could prove to be quite favourable.

YourMalta.com is a guide for the Mediterranean island of Malta at http://www.yourmalta.com

Seven large islands and a number of smaller islets comprise the Canary Islands. Tenerife is the largest of the Canary Islands. It is located off the coast of Africa and has fewer than a million permanent residents.

However, due to the surge in tourism in recent years, Tenerife is quickly becoming a good potential place to purchase real estate. Real estate investors from across Europe, and especially from Germany, the UK and Ireland have been sizing up properties in Tenerife over the last few months.

A favourite holiday spot for many Brits, Tenerife has an incredible number of tourists year after year.

According to a recent study, about 42,000 Brits have gone from being a tourist to buying a property in Tenerife, and property prices are anticipated to increase in the coming years.

Tourism is one of Tenerife’s most profitable industries. Inland Tenerife is where you will find a lot of opportunity to buy properties to renovate. If you are in the market for a country home where you can get away from the rigours of everyday life, inland Tenerife could have exactly what you’re looking for.

An impressive 1,500 square meter villa in the hills of San Eugenio, overlooking Las Americas is currently for sale for 4.1 million pounds. The mansion-like villa has five bedroom suites, three reception rooms, a huge pool and amazingly splendid ocean views.

The agency selling the villa says a famous European pop star has shown interest in the villa. The pop star is considering building a recording studio in the basement. It is well known that Sir Elton John was in Tenerife in January, but the agency isn’t saying if it is him.

Tenerife used to be considered one of Spain’s less prestigious destinations. The surge in real estate prices there seems to indicate that is rapidly changing. Mariah Carey has also recently visited Tenerife and is a big fan of the five-star Gran Hotel Bahia del Duque. The recently built luxury villas and spa also attracted the attention of Jennifer Lopez and husband Marc Anthony.

The most recent additions to real estate in Tenerife are very upscale, modern grey stone and white concrete villas. A three bedroom, three bath villa with a Poggenpohl kitchen is on the market for 690,000 pounds. Construction on these villas is almost complete. They are expected to sell within a very short amount of time.

Real estate more traditional to the island’s roots can be found in Fanabe beach. In this area, a candy-colored three bedroom villa with marble tiled floors, a private pool and a balcony sells for about 400,000 pounds. Homes in this area are very near the Sahara-sand beach and Golf Costa Adeje.

Blevins Franks International Director Bill Blevins said real estate in Tenerife is still much underpriced. ‘It’s a good long-term bet’ he said. ‘High-density tourism is bringing better quality homes and resorts, plus golf courses, and the infrastructure on the island has been greatly improved in recent years.’

Great holiday packages continue to bring in tourists, and tourists continue to become property buyers in considerable numbers.

Tourist information for holidays in Tenerife is at http://www.yourtenerife.net/holidays

Real estate investors world wide are looking at buying property on Lanzarote.

Why would so many people, under such financial turmoil, look at buying property on an island?

The answer is simple. Investment property – or even better, the return on investment they’re sure to see years in the future. Buying inexpensive property on one of the world’s leading tourist islands is a smart move, no matter how you look at it.

Island property is almost guaranteed to increase in value over time. Although it is one of the larger of the Canary Islands, Lanzarote will eventually run out of buildable land. This is a simple fact facing all islands. When there is no room to build more homes, property prices will skyrocket. This will make your investment well worth the time, money and effort you put into it.

In January and February 2008, a detailed analysis showed that of the 636 property inquiries received, 88 percent were overseas investors. That equals about 538 overseas investors looking to buy property in Lanzarote. This study suggests that changes in market conditions recently affecting the UK are not affecting Lanzarote properties in the least. In fact, it proves that Lanzarote is a very hot spot for buying prime investment real estate.

Puerto del Carmen is currently the driving market accounting for 43 percent of all property inquiries used in the analysis. Costa Teguise came in second with 30 percent and Playa Blanca third with 19 percent.

For residents of the Irish Republic, the island has become the most popular Spanish tourist destination. Irish investors make up a large percentage of those looking to invest in property on Lanzarote.

It would seem that investors looking to buy property on Lanzarote are looking for low cost, low risk options. The primary property types people are looking for are apartments or flats. Properties priced below 150,000 Euros received the most enquiries. Properties priced above 500,000 Euros attracted only 3 per cent of overseas investors enquiries.

Playa Blanca is one of the newer resorts on the island. It boasts a five star hotel where you will find restaurants, bars, spas and much more. Other features of the resort include pools, a children’s playground and an amphitheatre. Sports fans will enjoy the tennis courts, beach volleyball, soccer, a 9-hole putting course and more daily activities for kids and adults.

Those looking to invest in a villa property look primarily to Lanzarote’s Playa Blanca. Properties in Playa Blanca receive five times more inquiries than rival resort Costa Teguise. It is believed the reason for this is the newest resorts offer a better value than the older resorts on the island.

Lanzarote’s resort areas are always growing and increasing in value.

Tourists book months in advance for their favourite hotels. Many tourists have decided to buy an apartment or villa, not only for holiday stays, but also as investment properties. As tourism continues to grow in the Canary Islands, property prices on the islands will continue to rise.

http://www.yourlanzarote.net has information for Lanzarote flights and holidays.

Property prices on Mediterranean coastlines are still increasing in the first months of 2008 despite nervous markets elsewhere in Europe.

A recent agreement between France, Italy, Morocco and Malta is possibly helping the latest surge in real estate prices in the Mediterranean. The agreement to stop building properties within 100 meters of the coastline means no more new growth in waterfront properties. The existing homes and other real estate could continue to rise in value for months to come.

Homes and real estate on the waterfront are highly desired commodities among home buyers and investors in the Mediterranean on islands like Malta.

‘Demand is likely to outstrip supply and this will push the property price up’ said Foreign Property Buyer, an online community for foreign real estate investors. They agree this pledge will probably be good news for people who already own property in the new ‘no-build’ zones. The demand for waterfront properties will drastically increase the price of existing homes and properties.

For several years, property experts have stated that by the year 2013 the world-wide real estate market would likely see an increase of 13 percent annually. With agreements such as the one previously mentioned, that estimate could possibly be lower than reality yields. This could be especially true in popular holiday destinations, such as Malta.

Malta, along with several other Mediterranean countries, received a commendation from the World Tourism Organization in February 2008 for its tourism performance last year. In 2007, Malta’s growth rate exceeded European and world averages. Malta’s growth in tourist arrivals was just under 11 percent last year, more than double that of 2006. The results, according to Francis Zammit Dimech, Malta’s tourism minister, are simply a reward for governmental effort – although some onlime travel sites say it is despite the government and not because of them that tourism has increased in Malta as they blocked the low cost airlines for so long, and are now trying to claim credit for something private enterprise has achieved.

The 2007 world tourism growth rate was nearly 4 percent lower than Malta’s, at 6.2 percent.

‘This is just another confirmation of how Malta can outperform its competitors when we all work together as a team’, Dimech said. ‘We agreed on a plan of action with tourism stakeholders and worked together to ensure it was implemented.’ Whatever the reason, 898 million tourists stayed for at least one night in a country other than their own last year worldwide.

Malta’s national airline boasts great results for a minimal number of lost bags according to the Air Transport Users Council. Losing fewer than five bags per 1,000 fliers was the lowest rate of lost baggage among all European airlines. British Airways registered at 26.5 losses per 1,000 customers and Portugal’s TAP registered 27.8 losses per 1,000. Tourists agree that the amount of luggage lost worldwide is the biggest problem facing tourists. Many believe Malta’s airline has set a new standard for baggage security.

Astounding results from Malta’s airline, tourism on a steady and steep incline, and ‘no-build’ agreements help add to the demand for real estate in Malta. A relatively small country with so much to offer is enticing to real estate investors, as well as those looking for an amazing place to retire.

The implementation of a policy that keeps new properties from springing up in highly desired areas could send property prices higher. It will also help keep Mediterranean shorelines from becoming overly crowded as more people wish to own this highly sought-after property.

More details about property for sale can be found at http://www.maltaproperty.info

The Balearic Islands of Majorca and Menorca are very popular award-winning holiday destinations. A mere hop, skip and a jump from France and Spain, Majorca is now even more easily accessible. The UK’s leading low cost airline based at London’s Luton Airport now offers less expensive, more frequent flights from nearly anywhere in Europe to Majorca.

More flights to the island per week also make it more realistic for Brits and other Europeans to purchase real estate on Majorca. Many Brits enjoy the atmosphere of the Balearic Islands so much that they visit several times per year.

Now, with more flights readily accessible, it could be time to stop renting a hotel room or condo and buy a vacation home. So far, British investors haven’t been reluctant to take advantage of this new opportunity. The Daily Telegraph printed an article revealing 11,000 Brits now own a home in Majorca.

Real estate investors don’t expect property costs in Majorca to drop any time soon, if ever. Majorca is currently one of the most expensive places to buy real estate in the Iberian Peninsula. Investors believe Majorca is one of the safest property investments you can make. Majorca is an island with limited land available for new construction. This means the existing homes will retain their value for many years to come.

Because of its more remote and secluded location, it’s not surprising that many celebrities have homes on the island. One of Hollywood’s favorite couples, Michael Douglas and Catherine Zeta-Jones, own a holiday home in the village of Deia. Composer Andrew Lloyd Webber, Boris Becker and Claudia Schiffer also own homes on Majorca.

Waterfront property owners understand their property’s value. For several years there has been a ban on any type of construction within 25 meters of the coast. Those who already own beachfront property know this means if they decide to sell, they will have the ability to command a very high price. Beachfront homeowners know they’re living in a potential gold mine.

Purchasing a home in Majorca could be one of the most important investments in your life. Majorca sees 300 days of sunshine per year, making it one of the most widely sought-after tourist destinations in the world. Millions of people per year visit Majorca and neighboring Menorca. Majorca plays host to 23 golf courses and 25 marinas where, on any given day, you can see hundreds of brightly colored sailboats.

Less expensive and more frequent flights open up several doors for businesses such as wedding planners as well. Many couples looking to begin their lives together look for the perfect, picturesque place for their wedding ceremony. The new prices and frequency of flights to the island could quite possibly make many couples’ dreams a reality.

Rich in Spanish culture, Majorca has all the luxuries of a large city with a small town atmosphere. Tourists love the relaxing atmosphere, the salty breezes and the spectacular holiday celebrations. The UK low cost airline is simply making it easier for European tourists to escape their everyday lives more often. They are planning flights from Belfast, Bristol, Edinburgh, Glasgow, Liverpool, London Gatwick, London Luton, London Stansted and Newcastle three times per week.

Majorca property for sale details are at http://www.yourmajorca.net/property

If you are looking for a second or vacation home, you may be surprised that prices for homes on Spain’s Canary Islands are looking good for investors in 2008.

The newest statistics show that prices on the islands of Tenerife and Gran Canaria have never been more appealing for those seeking a permanent home or just a home away from home. Can you imagine living in a lush tropical paradise, permanently, with a price tag that is within reach?

Experts have stated that the tourism industry for this area dropped slightly in 2007. There were nearly 250,000 fewer tourists to the islands than anticipated. This drop, as slight as it may be, has created an excellent opportunity for the potential property owner.

Tenerife is the largest of the islands and offers full amenities for both visitors and residents. Many are shocked that prices for property on this beautiful island remain well below the national average. The property values are increasing on Tenerife, as is the popularity of this vacation island, but Tenerife is still a viable option for potential residents.

Whether you’re looking to buy or just want to visit a tropical locale, consider another of the Canary Islands – Lanzarote.

The island is unique from any other in the world. The volcanic activity that swept the island through the 18th and 19th centuries created a vast island that has almost lunar qualities. The volcanic surface of the island may appear strange and lifeless, at first, but the visitor quickly discovers the power of residents ingenuity.

A vineyard would be the last thing many people would expect to see on an island seemingly covered with volcanic residue, however, La Geria offers an inspiring look at how nature can triumph over the harshest circumstances. The workers of the vineyards learned to dig deep, below the volcanic ash, and plant their vines within the soil below.

Lanzarote was an incredibly fertile and productive island until the volcanic activity began. The enriched soil below the crust of ash helps roots develop, and the unique soil content gives Le Geria wines a distinctively delicate taste. Visitors are welcome at the wineries of the island and can taste and purchase the wares.

Lanzarote also offers many facilities for both residents and visitors. The Contemporary Art Museum celebrates the more traditional history of the island. Residents are also delighted to see a lack of commercialism on the island.

Tegise in Lanzarote is the former capital city, and remains one of the oldest cities along these archipelagos. Visitors and residents alike will enjoy the Sunday markets and the shops offering a variety of unique goods and products.

If you are interested in purchasing property on any of these islands, the Internet provides an impressive platform for learning more about the islands, their customs and culture and just how affordable life can be there.

Tribune Properties provide travel guides for both Lanzarote at http://www.yourlanzarote.net and Tenerife at http://www.yourtenerife.net

As homeowners on both sides of the Atlantic watch to see if their property’s value takes a dive, two prime areas of real estate where the super-rich choose to live have seen price increases, showing there is still money in the system, albeit for a niche market.

Real estate watchers will know that top end London prices rose sharply in the last three years, but less well reported has been how New York’s Manhattan has fared. While London prices could fall this year, Manhattan could see rises.

Suprising given that New York real estate prices dropped by four per cent in 2007, and yet, like London, pockets of an area that is seeing property price reductions can see good inflation for existing homeowners hoping their property portfolio will continue to perform well.

In fact, when looking at the real estate markets for the two leading financial centres of New York and London, there seems to be a breakaway section of the property market that behaves differently from other areas in the city where the super rich don’t favour, and are small enclaves.

Monaco, a financial centre as it is a tax haven, and only a square mile in sze, is another enclave of the wealthy that sees property behave quite differently from neighbouring areas on the French Riveria such as Nice and St. Tropez.

‘We often hear politicians comment that the rich are getting richer’, comments a UK based property company who sells property in Monaco, ‘And not only are the rich getting richer they have a micro economic property bubble in Manhattan, London and Monaco where the number of properties being sold and their prices are completely independent, and seperate from the rest of Europe and the U.S.’

Monaco property prices rose by over fifteen per cent in 2007, and in Manhattan seventeen per cent – but astonishingly properties in Monaco priced at 10 million Euros and above (around US$ 15 million) acheived a price hike of over twenty five per cent.

Part of Monaco’s price increases in recent years, and for the medium term future too, is that new housing being built is for locals, and a strong new supply of openly available apartments is unlikely to happen for a decade – and with strong demand and little supply it suggests further price rises are likely for 2008.

British citizens have moved to Monaco in high numbers in recent years and as UK taxes show no sign of falling this large group is expected to swell further in 2008.

Previously a relatively small group of Monaco residents, the number of British people living in Monaco has doubled in the last two years since 2005, with some 3000 now claiming residency in Monaco.

Time will tell if London and Manhattan’s top properties also continue to rise in the year ahead, pushing the markets for the super rich still further away from other real estate trends.

Apartments for sale in Monaco details can be requested at http://www.monacoproperty.net