Spotlight: Monaco

High demand, low stock

A lack of liquidity in the market pushed up residential prices by 6% in 2017

A sovereign city-state covering just two square kilometres, Monaco punches well above its weight on the world stage. With a profile in line with top-tier global cities, it’s an international centre of business, a world-class sporting and entertainment destination, and a hotspot for high-net-worth individuals.

The Principality’s economy continues to outperform the eurozone thanks to a diversified, high-value economic base. It’s a net importer of labour – around 53,300 people work in Monaco each day, compared with a permanent population of 37,550.

Project Portier is under way, while Sporting d’Hiver is nearing completion

Savills Research

These factors mean that demand for real estate of all types is high. Residential resale prices rose by 6% last year, while the number of transactions fell by 22%. This reflects illiquidity in the market. Wealthy residents hold their properties for long periods, while little new stock is being added.

However, the Principality is taking bold steps to build for its future. Project Portier is under way, while Sporting d’Hiver is nearing completion. These investments will help cement Monaco’s global position, but the new supply will do little to relieve the huge pressure on Monaco’s real-estate markets.


■ More than €2 billion of residential property was transacted in 2017. It was a strong year, but 23% below the 2016 record.

■ The number of new build transactions in 2017 was a record. With little new supply in the pipeline, we expect volumes will fall significantly in 2018.

■ Monaco’s population grew by 5.5% between 2008 and 2016. Home to 139 nationalities, this diverse base underpins residential demand.

■ The residential rental market is buoyant. There is a premium for larger properties, with monthly rents of €109 per sq m for three beds, and €114 per sq m for four beds and larger.

■ Prime rents in the office market stand at €1,500 per sq m per annum, and can reach €2,700 per sq m for new buildings.

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