Mareterra: The Final Frontier?

A financial windfall for the state, Monaco's new district built on the sea, Mareterra, was delivered in December 2024.  Will this be the last land reclamation? "Further extensions will not be possible or desirable for the time being," believes Prince Albert II.

"In our particularly unstable and somewhat worrying world, it is rare, even exceptional and unique, for a state to be able to increase its territory by 3% by the force of engineers and workers and not that of arms," rejoiced Prince Albert during the inauguration of Mareterra, whilst immediately pointing out that "further extensions will not be possible or desirable for the time being."  Inaugurated on 4 December 2024, this six-hectare district, built on the sea, represents, after Larvotto, Portier and Fontvieille, the Principality's eighth territorial expansion since the end of the 19th century.  At just 2 km², Monaco is one of the smallest countries in the world.  Faced with demographic pressure and growing infrastructure needs, the Principality has had to come up with bold solutions to develop without encroaching on its neighbours.  The construction of Mareterra mobilised enormous technical resources: 18 giant concrete chambers, equivalent to seven- or eight-story buildings, were transported by boat to form the base of the site.  The district rests on a thousand stakes and slabs, designed to withstand seismic hazards and anticipate rising waters.

The most expensive district in the world, according to the FT
Mareterra offers luxury residences - 110 apartments, 10 villas, four award-winning town houses, designed by the greatest architects, starting with Renzo Piano to whom we owe the Renzo Piano Building Workshop with its ship-like appearance.  Amongst the 10 buyers of the seaside villas, three chose Pritzker Prize winners, Tadao Ando and Norman Foster (who designed the Yacht Club de Monaco in particular) as their architects.  According to some estate agents, the average price per  m², €100,000, has now reached €120,000, which would make it, according to the Financial Times, the most expensive real estate in the world, particularly with properties of at least 400 m²! All are said to have been sold before the inauguration, some even being resold several times, generating capital gains.

Over €1.2 billion for the state since 2015
For the state's finances, since the signing of the concession agreement in 2015, Mareterra has represented an extraordinary windfall.  The construction cost of Mareterra, estimated at €2 billion (for the land, buildings and public spaces), was assumed by the developers of the Anse du Portier.  When the agreement was signed, the round table brought together Monégasque families (Pastor, Brianti, Casiraghi) as well as European investors (Lopez de la Osa, Meyer Bergman Investment Fund, Janus, Bulat Utemuratov, Gualini and Stéphane Robert).  Real estate VAT was 20% on all property sales, with a balance paid by the developer to the Monégasque state - not to mention the registration fees.  In total, "Mareterra brought in more than €1.2 billion in VAT and registration fees.  However, we regret that the amount for the state was €400,000, specially since the project was re-evaluated and two floors added," the President of the National Council, Thomas Brezzo, told us.  The valuation of Mareterra's assets should, nevertheless, continue to generate considerable revenues for the Principality, whether through property transactions, taxes or related luxury activities.