Monaco remains the most expensive prime residential market in the world with the average price per square metre now at €48,800. Just over €2.7 billion worth of residential property was transacted in 2018, an increase of 31 per cent, with an average sales price of €5,200,000.
The average price per square metre in the Principality increased by an astounding 18 per cent in 2018, at a time when many of the residential hotspots around the world are seeing prices slowing or, indeed, falling. Average prime residential values are now 237 per cent higher than Paris, 176 per cent higher than London and 10 per cent higher than Hong Kong.
Transaction volumes were also up by 15 per cent in 2018 compared with the previous year. Sales of new build property increased by 44 per cent to 72 sales, a record high for Monaco. However they accounted for just 14 per cent of total sales as re-sale stock continues to dominate the market.
There was also a noticeable increase in transactions over €5 million. In 2018, there were 142 transactions, up by 42 per cent compared with 2017 and nearly double compared with five years ago. Driven by demand from families moving to Monaco, sales of four bedroom and larger homes increased by 59 per cent while studio sales fell by nearly a quarter.
Occupying a space smaller than New York’s Central Park, Monaco is home to 38,000 inhabitants from 139 different countries. We saw a notable increase in demand from British, Middle Eastern, Turkish and Greek buyers over the course of 2018.
Monaco is also the most expensive market in which to rent prime residential property with an average rental value of €1,200 per square metre. Owning or renting a property in Monaco is one of the conditions of obtaining residency and many rent first in order to test drive the lifestyle before making a longer-term commitment.
Monaco has an unrivalled reputation for the world’s wealthy and we expect strong demand for property to continue to flow from all over the world. There is a huge imbalance between demand and supply which will continue to put upward pressure on prices, however we don’t expect values to increase at the same rate seen in 2018 as, globally, buyers are becoming more price sensitive.