Research article

Setting new records on the global stage

Residential property in Monaco is now the world's most expensive. Large properties are in high demand and trade at a price premium, with the average resale price in 2016 up 180% in a decade

A record €2.7 billion of residential property was transacted in 2016. This was the third year that total transactions exceeded €2 billion, with strong demand for limited product pushing prices to new highs.

Residential property in Monaco is now the most expensive in the world. The average resale price in 2016 was €4.3 million or €41,400psm, up 180% in a decade – a growth rate largely unseen in other developed economies. By comparison, prime London prices grew by 70% over the same period according to our World Cities data. In common with other prime districts across the globe, large properties are in high demand and trade at a price premium.

One-bedroom properties averaged €36,300psm, compared to €48,500psm for four-bedroom and larger properties – a 33% premium.

Monaco attracts a diverse range of international buyers seeking security, wealth preservation or a business base. British, Italian, Scandinavian and South African buyers were especially active last year. Towards the end of 2016 and into 2017, market activity slowed as buyers adopt a ‘wait and see’ approach ahead of the elections in France (a major trading partner) and wider global political events. With prices at record highs, wealthy vendors are unwilling to negotiate down and transaction volumes are now falling.

Monaco residential price growth since 2006 in euro terms
International Price League
10-year prime price growth


New development

In 2016, the average selling price of new-build properties in Monaco was €13.7 million – three times higher than resale properties of a different (sometimes dated) specification.

In total, only 553 properties were sold in 2016. Of these, 33 were new-build – just 6% of the market. However, in terms of value, these properties represented 17% of the market. New developments, such as Tour Odéon and La Petite Afrique, have brought property to Monaco that’s up to the standards of other major world cities. Designed to meet the demands of wealthy international occupiers, the well-appointed, spacious residential units offered are priced accordingly.

A large proportion of Monaco’s housing stock was developed in the 1960s and 70s, and many of these properties are looking dated and ripe for renewal and refurbishment.

In the next wave of development, international architects are raising the design stakes – for example, La Petite Afrique, which was designed by Brazilian Isay Weinfeld, provides large apartments with ‘flow through’ terraces, while Sporting d’Hiver, a large mixed-use development that’s currently under construction on Golden Square, is designed by British architect Richard Rogers.

Civic buildings are getting the treatment, too: the new building for the Yacht Club de Monaco is by British firm Foster and Partners.

Small supply, high demand: map

FIGURE 4Small supply, high demand Monaco continues to face high demand from the world’s high-net-worth individuals, which is driving price growth and plans for new property development.

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