In 2023, according to a report by Savills, Monaco remained at the top as the world’s priciest luxury property market despite overarching global economic challenges.
Buyers paid an average of €51,418 per square meter, a modest increase of 0.9% from the previous year. This rate significantly exceeded those of other high-end markets such as Hong Kong, New York, London, and Dubai.
The principality recorded a decline in property transactions, with 416 deals in 2023, marking a nearly 20% decrease from the year before.
However, the total value of transactions fell less than the number of transactions, suggesting that the properties sold were of higher value.
Moreover, the market saw an increase in sales of apartments exceeding €5 million, while cheaper properties witnessed a decline.
The surge in Monaco’s real estate interest has been partly fueled by the pandemic, leading to stricter residence requirements correlating property size with family size.
This rule change has spurred a trend towards larger new-build apartments—sales of new-builds with three or more bedrooms made up over 60% of such transactions in 2023.
The real estate market’s recovery, especially in the resale segment, is predominantly driven by the demand for more spacious apartments.
The districts of Monte Carlo and La Rousse alone accounted for over 60% of the resale transactions last year.
Notably, Jardin Exotique and La Condamine saw their average resale prices jump by 19% and 22%, respectively, indicating robust local market conditions.
Despite the volatile global economic climate, Monaco attracts high-net-worth individuals seeking a stable investment haven.
This enduring appeal has driven the development of new projects like Mareterra and Bay House Monaco, which aim to introduce 166 new apartments and 15 villas.
These developments are anticipated to meet the ongoing strong demand and maintain Monaco’s stature as a prime destination for luxury real estate investments.