As the Formula 1 World Championships are coming to the Principality from May 26 to 28 of 2023, the local real estate sector succeeds in making the most of the opportunity with the development of terraces or apartments rented by the day.
An historical event for the Principality
Each year, the Grand de Prix of Monaco is the most important event taking place in the Principality. Its international scope contributes to the reputation of Monaco and spreads its image abroad.
It creates important economical benefits (90 million euros in total) and attracts a clientele with high purchasing power who stay in Monaco for several days.
The Grand Prix impacts all of the economic actors present in the territory. Numerous events are taking place in parallel to the race itself and attracts a wealthy public that is no longer restricted only to car racing lovers.
A demanding urban circuit and thousands of spectators
In the 1920's, the monegasque Antony Noghès created a car race in the streets of the Principality, with the support of the famous monegasque pilot Louis Chiron.
The first Grand Prix de Monaco takes place in 1929. Two decades later, in 1950 the race was one of the seven circuits selected for the very first edition of the World Championship of Formula 1. Since 1955, it has been held every year without interruption.
Today, the Grand Prix of Monaco is the most famous Formula 1 urban circuit. It is known for its narrowness, tight turns and difficult passing. On average, drivers make 4,200 gear changes throughout the race.
For the spectators in the stands or in the adjacent buildings, it is the perfect opportunity to admire the drivers' athletic driving in a 100% urban environment.
Hotels fully booked a year in advance!
Due to the popularity of the race, the vast majority of hotels in the Principality are fully booked a year before the Grand Prix.
According to IMSEE, the expenses related to commercial accommodation totaled 18.6 million euros in 2017.
For several years, foreign companies have been the intermediaries, buying rooms from Monegasque hotels for the duration of the Grand Prix. They then resell them in the form of packages, which inevitably affects the average room rate during this period.
According to a study published in 2017 by IMSEE on the economic repercussions of the Grand Prix, only 16 % of visitors present during the race are accommodated in Monaco.
Little by little, the high-end clientele passionate about cars has been replaced by a clientele of international jet-setters. A more volatile and unpredictable population capable of spending a lot of money while staying only a few hours in the Principality.
In fact, beyond racing, they are mainly interested in the festive and unmissable events organized on the sidelines of the Grand Prix (e.g. Amber Lounge parties). Renting terraces, balconies and private apartments: a credible alternative for spectators
In order to see the circuit without purchasing tickets in the stands, the thrill seekers can enjoy terraces arranged on rooftops and balconies. As a consequence, a dozen rooftops are transformed into terraces and can welcome more than a thousand people each year.
Revenues from ticketing and terrace rentals also amounted to nearly €18.2 million in 2017.
In addition, most of the apartments overlooking the circuit are also marketed by local event agencies for the day (especially on Sundays). For spectators, this is the perfect opportunity to enjoy the view and watch an iconic car race.
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