A World on a Mortgage: What Surprised Me More Than Yachts and Supercars After the Monaco Grand Prix
An apartment of 50m2 for 71 million crowns. In the most expensive part of Monaco, almost 90 million. One would expect such properties to be purchased exclusively in cash. However, on the world's most expensive real estate market, I noticed something different. Mortgages. Not as a necessity, but as a well-thought-out financial tool. And perhaps in this, Czech investors could learn a lot from those in Monaco.
When people think of Monaco, most envision Formula 1, yachts, casinos, and Kim Kardashian with Lewis Hamilton in very special outfits. Monaco is a lifestyle that's more of a movie subject than everyday reality for the average person. One of my favorite jokes is about how when you get an apartment in Monaco, you get a free view of someone much wealthier. Although, maybe that's not funny.
Monaco has an area of just over 2 km². The whole country is smaller than most parts of Prague. Space is limited, and interest is immense.
Mortgage in Monaco and 1.4 million per square meter of property
After this year's Grand Prix, I became interested in something completely different. A "Monaco" mortgage.
And I came across something that really caught my attention.
According to official data from the Monaco statistics office IMSEE, the average property price reached 57,569 euros per square meter in 2025. This corresponds to approximately 1.4 million crowns per meter.
In other words:
• an apartment of 50 m² costs approximately 71 million crowns,
• in the most expensive Monaco district of Larvotto, where prices exceeded 71,167 euros per square meter, an apartment of the same size costs nearly 88 million crowns.
These are amounts that most of us can't even imagine. And that's why I automatically thought that such properties are bought exclusively in cash. But the reality is different. Many buyers use bank financing. Not because they lack funds, but because they don't want to use all their money at once.
Despite the average value of a sold property in Monaco exceeding a billion crowns, local banks commonly provide financing of 50-70% of the property's value. This suggests that even in the world's most expensive real estate market, a mortgage isn't a sign of a lack of money. On the contrary, it is often part of a strategy for effectively managing capital.
Czech Properties on Mortgage Like Monaco
And here I realized that this is actually a principle I see with clients in the Czech Republic as well. Of course, with different numbers. But the principle remains the same. When someone has available funds, it may not always be the best idea to put them all into one property.
Sometimes it makes more sense to use part of your own resources and finance a portion with a mortgage. Keep a reserve. Have money ready for another investment opportunity. Or simply maintain a certain financial flexibility.
In the Czech Republic, I often encounter the opinion that the best mortgage is no mortgage. I understand that. No one likes debt. On the other hand, it's good to realize that people who build wealth long-term often don't think in terms of "how to get rid of a loan as quickly as possible," but rather "how to work best with their own capital."
Monaco is an interesting example in this regard.
In 2025, there were 493 real estate transactions here with a total volume of 5.9 billion euros, which corresponds to approximately 146 billion crowns. And although it is one of the wealthiest real estate markets in the world, bank financing remains a common part of the investment strategy for wealthy clients here.
Not out of necessity.
As a tool.
And perhaps that is the most interesting idea one can take away from Monaco. Not that there are expensive apartments. Everyone knows that. But that even people who could pay for everything themselves very carefully consider when to use their own money and when to use the bank's money.
And honestly?
This is a lesson that can be useful not only in Monte Carlo but also in Prague.
Sources:
https://www.gouv.mc/en/news/imsee-releases-the-2025-edition-of-its-real-estate-observatory
