Spotlight: Monaco 2017

Residential property in Monaco is now the world's most expensive; however, transaction volumes are falling as the market reaches a sticking point

Monaco is home to world-class sporting and entertainment events, successful sports teams and a royal family. With a population of 38,400, it is a big country in miniature. Spoken about in the same breath as the premier world cities, Monaco punches well above its weight on the global stage.

The Principality is a low-tax centre of commerce with all the characteristics of a leisure destination. This makes it very appealing to high-net-worth individuals as a place to live, do business and play. 

At a time when prices have adjusted in the prime residential markets of many world cities, prices in Monaco have continued to rise. In 2016, average sales prices reached a record high of €41,400psm, overtaking Hong Kong to become the most expensive residential real estate in the world.

This comes as a number of high-profile new developments have completed, although fewer are expected in the near term. Wealthy residents hold their properties for long periods, so market liquidity is low. Monaco’s position on the global stage is assured, but owning a piece of it will be more difficult and come at an ever-higher price.


Prices to remain at record highs

Buyers are becoming more price sensitive but with an ongoing supply-demand imbalance, we don’t forsee any potential for downward adjustment.

Shortage of new properties for sale

There were no completions in 2016 and not until Le Portier completes will there be any volumes of new supply. We anticipate a shortage of new product in the near term.

Ongoing global political uncertainty

While some are adopting a ‘wait and see’ approach, in the long term Monaco’s safe-haven credentials will underpin demand. Changes to the UK’s non-domicile rules from 2017 could see more expats choosing Monaco as a base.

Building a world class destination

Monaco is currently investing extensively in infrastructure to secure its position as a world class business and leisure destination.

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