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With ever-increasing demand throughout 2018, residential property in Monaco has reached new highs in terms of value and growth
Market dashboard Monaco’s residential market in 2018
Source: Savills Research using IMSEE
Monaco’s residential market had a strong year in 2018. The average price per square metre was €48,800, an increase of 18% compared with 2017. This was driven by the high demand for real estate in the Principality, which vastly outstrips the limited supply. There was a noticeable increase in demand from British, Middle Eastern, Turkish and Greek buyers over the course of 2018.
.jpg "High demand, particularly from families, has driven the average price to €48,800 per sq m")
Strong growth in 2018 High demand, particularly from families, has driven the average price to €48,800 per sq m
Source: Savills Research using IMSEE
In addition, the increase in the average price reflects an increase in sales of larger, more expensive properties, driven by demand from families moving to Monaco. There was a 59% increase in sales of four-bedroom and larger properties in 2018 compared to 2017, while studio sales fell by nearly a quarter.
Overall, transaction volumes increased by 15% in 2018 compared with the previous year. Sales of new build properties, in particular, increased by 44% to 72 sales, a record high for Monaco. However, they still accounted for just 14% of total sales in 2018 as resales continue to dominate the market.
.jpg "Sales of new build properties increased by 44% to 72 sales over the year to 2018, a record high")
New build transactions Sales of new build properties increased by 44% to 72 sales over the year to 2018, a record high
Source: Savills Research using IMSEE
The increase in new build transactions was driven by sales at Le Stella, a mixed-use development, which accounted for 80% of all new build apartment sales. However, although the number of new build properties sold is at a record level, the total value is still 18% below the 2015 peak when 11 new build properties with four or more bedrooms were sold.
There has been an increase in transactions of property above €5m across the whole market, both for resale and new build properties
Savills Research
There has also been a noticeable increase in transactions of property above €5 million across the whole market, both for resale and new build properties. In 2018, there were 142 transactions at more than €5 million, a 42% increase compared with 2017 and nearly double the number of five years ago. In London, a city with a population 210 times that of Monaco, there were 334 sales over £5 million in 2018 – just 2.4 times the number in Monaco. This represents a 2% fall in £5 million-plus sales in London since 2017 and 37% over five years, reflecting the more subdued market due to increased stamp duty and Brexit uncertainty.
.jpg "Since 2017, there has been a 42% increase in €5m+ transactions in Monaco, and a 2% decline in London")
Sales of €5m/£5m properties Since 2017, there has been a 42% increase in €5m+ transactions in Monaco, and a 2% decline in London
Source: Savills Research using IMSEE
INTERNATIONAL SPORTS CENTRE
A busy calendar of high-profile sporting events, ranging from the Monaco Grand Prix to the Monte-Carlo Masters tennis tournament, keeps the global gaze firmly on the tiny Principality.
Read the other articles within Report: Monaco below
