Research article

Monaco's Residential Market

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

Monaco’s residential market saw another strong year in 2015 with a total of €2.25bn sales undertaken, slightly down on 2014’s record of €2.4bn. In the resale market, which accounted for 93% of deals, 509 sales were recorded. This was 8% below 2014 volumes, but still 11% above 2007 levels (Figure 3). The very upper tiers of the market have been most liquid and total euro volumes stand 67% above their 2008 peak.

Figure 3

FIGURE 3Resale transactions: 2015 volumes down on 2014 peak

Source: IMSEE

Price trends

Monaco is a small market and average prices are prone to fluctuation depending on the sample of properties sold in any one year. In 2015 the average resale price in Monaco stood at €3.5m, down 4.8% on the year prior, while the median price, at €2.1m, was up 5.0%. The long-term median price trend shows consistent growth, averaging 5.8% per annum since 2010 (Figure 4).

Figure 4

FIGURE 4Mean and median resale price: steady upward trend in median price

Source: IMSEE

In common with other top-tier global prime markets, the largest properties in Monaco achieve a price premium on a square metre basis. With developable space limited, large, single, units are in short supply and priced accordingly. There is a price premium for size. Between 2013 and 2015, the average resale price of a four bed (or larger) property stood at €40,700psm. This is 28% higher than the price per square metre of a one bed property at €31,900psm.

Occupier profile

Purchasers of prime property in Monaco are diverse, providing a broad demand base. Less than a quarter of Monaco’s residents are Monégasque, the remainder are of 144 different nationalities, of which the French, Italian and British are the largest groups.

In the last year, increased purchasing activity has been seen from British and Greek buyers seeking a move for wealth preservation. A range of Europeans and those from the Middle East are active, while Russians have seen a small decline (but are still present). Many relocating individuals also seek to move their businesses to Monaco (see Office Property).

Figure 5

FIGURE 5New development in Monaco: Recently completed and pipeline projects in the Principality

Source: Savills World Research

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