With one bedroom apartments in the Principality already at the million Euro level, the lack of properties coming to the market and the absence of new builds could make today's prices seem like a bargain in five years time.

'Three years ago there were six hundred properties on the market', claim the company, 'Now there are two hundred. Coupled with increased demand, especially from the UK, prices have been rising and could go quite a bit further if current trends continue.'

Visitors to Monaco and Monte Carlo are often surprised at the lack of apartments for sale as they can see new buildings under construction.

'The apartment buildings under construction are for local Monaco people', they explain, 'Rather than for the open market where anyone can buy a property. The situation is unlikely to improve in the short and medium term but the number of buyers is rising - and consequently so are the prices. Monaco now has the highest priced property in Europe.'

Other reasons for the shortage of property in Monaco include that residents are holding on to their apartments longer, enjoying the tax free status Monaco affords, and as the owners see their property rising in value holding on to it as an investment.

To maintain residency in Monaco, residents need to live in the Principality for six months a year. Winter time often sees a lot of apartments mothballed with the owners wintering in the Caribbean.

The Economy In Monaco

With property prices in Monaco the highest in Europe and one bedroom apartments after closing costs starting at around a million Euros, longer term the shortage of property will be helped by a new island being built off Monte Carlo.

It's thought unlikely that the new island to be built off Monaco will reduce prices much overall though, despite the increase in the number of property units available as Monaco property is always in demand.

The property company believe that most new apartments will be sold to investors off plan well in advance of any building work starting.

'The problem with property in Monaco is not the lack of buyers', they say, 'but more the lack of good properties for buyers to choose from. Hopefully the new island will address that. Everyone in Monaco is aware of how important the environment is thanks to Prince Albert's initiatives in pushing it up the political agenda, and any new developments will be low rise. With the good weather in Monaco expect to see plenty of solar panels on the roofs to make the buildings energy efficient'.

It is possible that the new island will be incorporated into future Monaco Grand Prix, which could give more overtaking opportunities.

During his first year Prince Albert has successfully made the people of Monaco aware of global warming and taken steps to combat it, and for his second year and beyond he is likely to be campaigning just as hard at home and abroad on the issue he believes in so much.