The new build market in Monaco is tiny, and exclusive. New development is tailored to the demands of the global elite and this means large, high-spec apartments with extensive facilities within the building. Much of Monaco’s housing stock is comprised of apartments developed in the 1960s and 70s with a limited amenity offer, so the new supply occupies and enjoys a unique position in the marketplace and carries a significant price premium.
New build development is characterised by well-appointed schemes offering large units to appeal to the world’s wealthy.
FIGURE 6How much a €2m property costs to a US dollar buyer
Source: Savills World Research - exchange rate as at 17 March 2015
IMSEE recorded just 11 new build sales in 2014, down from 15 in 2013, so the market remains very small and exclusive. During the global economic downturn developers in Monaco shifted their focus to the global ultra-prime segment, developing larger units at higher price points. This has pushed total new build sales volumes to €345 million, 2.5 times the volume recorded in 2013 and 13 times that of 2008.
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FIGURE 7New build transactions: the trend for larger units continues
High-end schemes completed in recent years include L’Oiseau Bleu (20 units), Le Monte-Carlo View (45 units) and Le Monator (19 units) and the Tour Odeon (70 units) which is due to be completed this year.
Other large developments, such as Le Stella (102 units), have recently launched, and will incorporate retail and office space. Last year also saw the completion of Villas du Sporting, three ultra-prime villas of 500sqm on the seafront.