Why The Monaco Real Estate Market is Still Worth It

Have you been thinking about moving to Monaco or making a residential real estate investment in the principality? There are a wealth of advantages that will make you want to invest in the unique country of Monaco. While it is the second smallest state in the world, its privileged location on the Mediterranean right next to France makes it the most expensive international property market. However, while many of the sales on offer are already-built properties give the land constraints for prime new building opportunities, some new developments still make the Monaco real estate market appealing.


monaco luxury real estate


Monaco luxury real estate at a glance

What makes property investment in Monaco so appealing? Several factors currently make the market in such high demand. The first is that there is a very low tax burden. With the income tax rate in Monaco at zero per cent since the 1860s, as well as no capital gains, council or annual property taxes, as well as no tax penalty on the purchase and sale of any local real estate, you’ll surely get the full value out of any property investment in Monaco.

High net-worth individuals seeking the tranquillity that an exclusive lifestyle surrounded by peers would be hard-pressed to find another destination quite like Monaco, which is projected to have 30% of its population be multimillionaires. 


How much is real estate in Monaco?

How is real estate priced? The trends for the average cost per square metre for housing grew by nearly double from €24,538 in 2009 to €48,799 in 2018, showing an upward trend in prices over the years. These most recent figures that we could find show that the average price per square metre meant that Monaco real estate prices were 96% higher than New York and 10% higher than the second-most-expensive city, Hong Kong. For those investors who can pay the price that the markets dictate, there is certainly a place that provides for your needs.

According to a Savills research report, the value of real estate transactions in 2017 was said to have been €2.1 billion across the city-state. While the number was high, it was a decline from sales the year before. These figures demonstrate that the market for a home in Monte Carlo and the other Monagesque districts continues to be highly desirable. However, realty companies contend that the lack of land and the fact that people hold onto property longer makes it more cumbersome for people to purchase property. Many will opt into renting before choosing to purchase due to easier access to a rental that better meets your expectations. However, this knowledge should not stop your search for the perfect home in Monaco. 

Not only is there a tight supply, keep in mind that most of the housing stock was built between the 1950s and 1970s, giving the flats/apartments available for resale a distinctive look. Many of the ultra-high-net-worth individuals who invested in luxury flats in Monaco did not spend time renovating their properties. Still, Knight Frank noted that more owners are beginning to make those renovations to get the homes out of that aesthetic and have the properties be similar to their other residences in other points of the globe.


How is the Monagesque government responding to the real estate investment demand?

News recently broke that the Monagesque government is currently reclaiming land from the Mediterranean sea, resulting in an increase in its surface area by six hectares. The increased landmass appears to be a response to the pressure that is currently on the market. The project will include 60,000 square metres of luxury housing, as well as a private port and 3,000 square metres of new retail space at the cost of €2 billion. Bouygues, the French industrial firm, built a 500-metre long wall that they filled with sand after pumping out the seawater. They are currently using a technique called jet grouting to stabilise the land before beginning construction until October 2020. Jean-Luc Nguyen, the Monagesque official supervising the project, said that “[w]hat we tried to do is create within the new infrastructure ways for the flora and fauna to return as quickly as possible.” After all, this new project that took out seawater implied that there would be a loss of natural habitat, and it was meant to happen in a way that would minimise the impact. 
Along with this project, Groupe Marzocco, the architecture firm in charge of the Tour Odeón, the principality’s tallest building, is currently working on Testimonio II along the Avenue Princess Grace on the waterfront. While most of the housing units for this development are state-owned, there are going to be 49 private residences available. There will also be a new campus for the International School of Monaco, and a kindergarten to improve urban living in the city. 

These two projects are sure to add some much-needed supply into a leading, global land-constrained real estate market with very high demand.


Are you ready to make your Monaco luxury real estate investment?

If you’re ready to pursue Monaco residency and property investment, our leading team of Monaco relocation experts can help you through every step of the process. We’ll make sure that if you want your property to become your primary residence, it is big enough for your family, and take care of the other details as you either begin your time as a Monaco resident or move into your new home. Are you ready? If so, don’t hesitate to contact us. 


Written by 

Maryia Vindarharava author profile

Maryia Vindarharava
Corporate Services, Europe Emirates Group 

Luxury and Lifestyle
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