Review of real estate prices in Monaco and forecast for 2020


The increased demand for real estate in Monaco is due to the favorable Mediterranean climate, stable political situation, modern infrastructure and developed economy of the country. Each year, the principality on the French Riviera welcomes approximately 900,000 tourists. Monaco attracts foreign buyers with its tax haven status, high-quality apartments, sea views and rich cultural life.

Property types

Real estate prices in Monaco are considered the highest in the world. The acquisition of objects seems to be a profitable investment, therefore the territory of the state is almost completely built up.

Popular properties for buying property in Monaco:

  • apartments;
  • villas;
  • townhouses;
  • commercial properties.

Real estate in Monaco is in high demand among those who want to enjoy a vacation away from prying eyes, so one- and two-room apartments with swimming pools and sea views are in greatest demand in the state. The most popular are the prestigious residential complexes in the Carré d’Or – an area with high fashion boutiques and exclusive penthouses, Larvotto – a picturesque quarter with a delightful promenade and La Condamine – the oldest part of the principality, located around the port of Hercule. Those seeking to immerse themselves in the dynamic atmosphere of the center of Monaco purchase apartments in the “Golden Square” – the area surrounding the casino with an entertainment complex.

Some buildings in the principality are intended exclusively for rent and cannot be sold – therefore, the cost of purchasing objects is often higher than the price of real estate purchased for rent.

The most expensive real estate in Monaco are villas in the elite quarter of Monte Carlo, famous for its casinos, the Hotel de Paris, Metropol and Hermitage hotels, as well as the Metropol shopping center. Among those wishing to take a break from the hustle and bustle in quiet residences with sea views and parking, Fontvieille is in demand – a quarter remote to the west of the center with a port and ancient attractions.

Who buys property in Monaco


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Buyers from all over the world are showing great interest in real estate in Monaco: this explains the fact that only 20% of the inhabitants of the principality are its citizens.

The market for real estate buyers in Monaco is international – properties in the state on the Cote d’Azur are popular among Russians, French, Italians, Canadians and Americans. One of the main features of the situation in the principality’s real estate market is the high liquidity of its residential properties, as well as extremely low taxes. Therefore, wealthy foreign buyers consider their purchase as a successful investment with the possibility of subsequent increase in funds. An additional bonus to the purchase are attractive conditions for doing business and a high standard of living in general.








Buyers country
Percentage of total buyers
Russia and CIS countries
40%
Italy
10%
Asia
3%
Rest of the world
20%

The main motive for buying property in Monaco is to purchase a holiday residence. The second, no less important aspect is obtaining a European residence permit. Every fourth person living in the state on the French Riviera is a dollar millionaire. According to experts from the international consulting company Knight Frank, by 2026 even more ultra-high-income people will settle in Monaco – 16,100 millionaires and 1,450 of the world’s wealthiest people will live here.

The cost of real estate in Monaco is constantly growing, so a profitable solution for those who want to make money is to buy properties for rent and then sell them after 5-10 years at a better price.

How much does real estate cost in Monaco?

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The cost of real estate in Monaco depends on several factors:

  • region of location;
  • apartment sizes;
  • availability of a swimming pool;
  • distance from the sea and places of entertainment.

The minimum price of 1 square meter in apartments in the Principality is 20,000 €.
The cost of a premium class property is about 53,000 € per square meter.

The average cost of a standard apartment (with a bedroom, bathroom, kitchen and living room) of 100 m² is approximately 5,000,000 €. Housing in new buildings in the principality will cost approximately €14,000,000; secondary market properties are three times cheaper. The price of real estate in Monaco, depending on the area and type, is shown in the tables:











Area
Average cost m², €
Monte Carlo 44 083
Saint-Roman
35 332
Fontvieille
39 701
La Condamine
41,664
Jardine Exotic
28 333
Moneghetti
32 147
Larvotto
51 182








Object type
Approximate cost, €
Apartment
from 795 000
Villa
from 900,000
Townhouse
from 10,000,000
Commercial properties
from 2,000,000

Approximate calculation of the monthly maintenance of an apartment with an area of ​​80 m²:

  • rent (including heating, water supply and garbage removal) – from 600 €;
  • underground garage rental – from 300 €;
  • Internet subscription fee – from 40 €.

In addition, it is worth considering the tax costs of owning real estate. According to reports for 2018, the price of real estate in Monaco reached 55,000 € per square meter, while the cost of the most elite properties can reach 100,000 € m².

Real estate prices in Monaco: forecasts for 2020


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As some real estate market specialists note, in the near future the number of transactions on the primary market of the principality will decrease, since most of the new buildings have been completed and are almost completely sold out, and the objects currently under construction are oriented towards rent rather than purchase.

However, according to published data, the profitability of apartments for rent is low (approximately 2% per annum), so we can expect an increase in offers related to the sale of objects.

According to analysts, next year apartments with an area of ​​up to 1,500 m² will cost 30% more. The estimated average property price in Monaco will be approximately €54,000 per m². Taking into account the growth in demand, we can predict an increase in the overall price of objects by 5–10%, depending on their location and type.

The state authorities plan to resolve the difficult situation with a limited number of offers on the real estate market by building Le Portier – the future eleventh district of the principality, due to which the area of ​​​​Monaco will increase by 3%. According to Jean-Luc Nguyen, director of the project to expand the principality’s coastline, the purpose of building new facilities is to provide residences for future residents of Monaco. Therefore, the project is primarily aimed at large companies and wealthy foreigners.

An investment of € 2.4 billion is expected in the Le Portier project until 2025. On the new territory it is planned to build luxury residential apartments and villas, restaurants and bars, museums and theme parks, as well as an amphitheater overlooking the sea.

The picturesque coast of the Ligurian Sea and the proximity of the Cote d’Azur with its mild climate and luxurious resorts are excellent conditions for living and relaxing for property buyers from all over the globe. A transparent tax system for foreigners, a low crime rate, interesting social events, many Michelin-starred restaurants, prestigious educational institutions and modern medical care make real estate in Monaco more and more in demand every year.

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