Spotlight: 

Monaco Residential Market

Monaco Residential Market
Monaco Residential Market

26 May 2016, by Paul Tostevin

High demand for prime property meets with low supply in an extremely limited land area

Monaco continues to be an exceptionally attractive location for the global wealthy and has all the key ingredients for real estate price growth.

A very strong local economy employs more people than can be physically accommodated within the city state. High demand for both residential and commercial space meets with low supply in an extremely limited land area.

 

Monaco’s residential property market may be very valuable but it is also very small. Transaction numbers topped only 547 in 2015 but, even then, this represented less than 4% of private housing stock numbers in Monaco. On average, since 2006, less than 3% of private stock has traded each year, meaning that the average Monégasque home changes hands only once every 37 years. This compared to prime London properties, for example, where the norm is nearer once every 20 years.

Against this low annual supply of resale properties, new builds in Monaco are a drop in the ocean. A mere 3.5% of transactions between 2010 and 2015 were newly built apartments. Only a handful of new apartments are earmarked for delivery in 2016 so the supply shortage will appear even more pronounced.

While delivery is anticipated to increase after 2017, we anticipate that it will still add no more than an average of 0.4% a year to stock and will be inadequate to subdue the market by saturating latent demand.

 

 
Attractive to the global wealthy

▲ Attractive to the global wealthy

Articles from Spotlight: Monaco Residential Market – 2016

Monaco At A Glance

26 May 2016

Monaco At A Glance

Monaco is attractive to a broad base of global occupiers and investors. Prime residential is in high demand

Monaco

Median residential prices grew by 5% in 2015 to €2.1m. Total sales volumes in euro terms were down but only by 6.3% on their 2014 record

New Build Market

26 May 2016

New Build Market

Newly built properties accounted for 7% of all sales by number in 2015, but 20% by value

Outlook

26 May 2016

Outlook

Safe haven credentials, political and economic stability will continue to underpin Monaco's appeal

 
 

Key contacts

Paul Tostevin

Paul Tostevin

Associate Director
World Research

Savills Margaret Street

+44 (0) 20 7016 3883

 

Hugo Thistlethwayte

Hugo Thistlethwayte

Head of
International Residential (Operations)

Savills Margaret Street

+44 (0) 20 7409 8876

 

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