Despite being influenced by global events and trends beyond its borders, Monaco has consistently retained its status as the world's most expensive prime property market in 2023.

Despite facing macroeconomic challenges, prime residential markets globally have displayed resilience, with Monaco, renowned for its stability, maintaining its robust performance. While the capital values in other markets tracked by the Savills World Cities Prime Residential Index rose by 2.2% in 2023, Monaco experienced a more modest growth of 0.9% in price per square meter. Nonetheless, Monaco's property prices have reached a high plateau, with current prices per square meter standing at €51,418, slightly below the record seen in 2021.

Although transaction volumes decreased by 8.7% in 2023, the total value of transactions remained over €3.2 billion, with new-build sales amounting to over €1 billion. This surge in new-build sales, accounting for over 30% of total sales, is a significant departure from historical trends where new builds comprised less than 10% of total sales. Despite a decline in the number of transactions, the total transaction value saw a smaller decrease, indicating higher-value transactions occurring in the market.

The trend towards larger apartments in Monaco is driven by the pandemic-induced reassessment of housing needs and changes in residence card application requirements. Consequently, the sales of larger apartments with three bedrooms or more constituted over 60% of new build sales and 22% of resales in 2023, while smaller flats saw a decline in their share of total sales.

District preferences play a crucial role in property purchases in Monaco, with Monte Carlo and La Rousse accounting for over 60% of resale transactions in 2023. Additionally, certain districts, such as Larvotto and Jardin Exotique, witnessed substantial price per square meter growth, reflecting the desirability of these areas among buyers.

Despite ongoing construction projects like Mareterra and Bay House Monaco, which will add new apartments and villas to the market in 2024, Monaco continues to grapple with chronic undersupply. The perceived safe-haven status of Monaco may attract buyers seeking stability amid global economic uncertainties, thereby supporting pricing, transactions, and overall demand in the near term.

Sourced from Savills