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Monaco's ambitious US$2.4b construction plan to stay relevant
FIRST-TIME visitors to the Monte Carlo Casino for next weekend's Grand Prix may not find the view they're expecting.
In the place of sea vistas are screens shielding the coast; in the water, dredgers are strategically placed, like warships. One visitor joked: "Monaco's yachts don't look as glamorous these days."
The construction is the first step towards creating new, ritzy Riviera housing on land that is currently underwater.
Since 2016, the principality's government has been pouring thousands of tonnes of Sicilian sand into the shallow harbour at a cost of US$2.4 billion.
By 2025, the neighbourhood, called Anse du Portier (or Portier Cove), will increase the principality's size by 3 per cent and feature 120 luxury apartments, 10 over-the-top villas, a seaside promenade extending to Monte-Carlo Beach, and a Portofino-inspired port dreamt up by Pritzker Prize-winning architect Renzo Piano - all on Monaco's last remaining sliver of untouched shore.
It's all part of a plan to rescue the tax haven from its housing shortage, which has helped the city-state claim the world's most expensive residential real estate.
The development follows a similar land reclamation effort in the 1970s, when Prince Rainier III built the industrial Fontvieille neighbourhood on nearly four hectares that contained only Mediterranean water.
Unlike such capitals as Paris or New York - which continue expanding, up or out - Monaco refuses to tear down old buildings to make space for a slew of taller, newer ones. It can expand in only one way: over the water.
According to Jean-Luc Nguyen, director of the government's offshore expansion project, the goal of Portier Cove is to "provide top luxury residences for people who want to settle in Monaco", since most of the principality's housing stock is aesthetically stuck in the 1970s.
The deep-pocketed companies and residents who reap the rewards of the tax haven are also the primary benefactors for the local economy, and they are critical to Monaco's continued growth.
The new neighbourhood will help lure billionaires with a handful of state-of-the-art amenities (sea-powered heating, solar-powered electric) plus expansive, seaside views.
The villas - which stretch up to 16,000 square feet - are priced 30 per cent higher than Monaco's average homes, which are estimated at around US$5,600 per square foot.
But Mr Nguyen cautions that bidding wars are likely to drive the final price tags to "whatever the customer is ready to pay for".
For some, the project has a reverse Robin Hood effect, stealing land from the sea in a style similar to Dubai's "The World".
The 300-island archipelago targeted an elite group of rich and famous, such as Brad Pitt and Richard Branson, but ultimately flopped, digging up debts of US$60 billion.
Monaco's government argues that this project is less about becoming a superlative city such as Dubai, with the "tallest" and "most expensive" architecture, and more about the prince's plan of transitioning Monaco into a carbon-neutral country by 2050.
The district will follow a pedestrian-only design, with such sustainable features as e-bike stations and rainwater recovery systems.
40 per cent of the energy consumption will come from photovoltaic solar energy panels and thermal pumps, which will use the temperature of the sea to control heating and cooling systems, as well as power 80 per cent of the street lighting.
The past two years of work have all happened underwater as engineers laid the foundation for Portier Cove.
But according to Philippe Jan, director of Bouygues Travaux Publics, the construction company managing the project, onlookers will soon start seeing the "emerged part of the iceberg" as 10,000-tonne concrete slabs get towed in from Marseille and set into place.
The construction echoes around the tiny town, though, so Mr Jan and his team will put the project on pause during the bustling summer season.
For now, it's orange-barrel season in Monaco, and not just on the Portier Cove coastline. Construction has also overtaken Casino Square, where a new crop of luxury shops and even more luxurious apartment buildings are underway. BLOOMBERG