Travel guide yourmonaco.com says that some Monaco property buyers are already paying nearly US$1,000,000 for studio apartments, and with a rising number of millionaires - particularly from the United Kingdom - queuing up to apply for residency, prices are only likely to keep rising.

"While we would like perhaps to imagine that it's the fine cuisine and good weather in Monte Carlo that is attracting the British to Monaco, we know realistically that it is because residency entitles them to a zero rated income tax," said yourmonaco.com.

The guide cited one survey which predicted a four-fold increase in the ranks of British millionaires over the coming years, while another survey forecast a 70% increase in property prices over the same period.

Yourmonaco.com continued: "Inheritance tax in the UK is quite a big issue at the moment as many more people are above the government threshold due to their house price, and in Monaco there is no inheritance tax, which gives an added incentive for some to move to a tax haven. People choose to leave their money to their children, cutting out the government that would take a large share."

Monaco real estate prices now match those of London and New York's Manhattan, according to a CBRE report on world property.

However, personal, as well as financial security, is another key reason why Monaco is so popular with the world's wealthy, the travel guide concluded.

"Perhaps the most telling survey for us was the one by Laura McKenzie, a US travel expert."

"She rates Monaco as the number one destination for safety. For people with money, preserving and optimising what you have in the bank is important, but so is the ability to walk down the street without fear. Monaco provides both the financial and personal security the wealthy seek, and it should come as no surprise when they decide Monaco is the best place for them and their families to live," it noted.