New-build (re)naissance

For decades, the prevailing story of the Monaco property market has been one of chronic under-supply. For a microstate less than half the size of New York’s Central Park, but with strong global demand, this is hardly surprising.

The official launch of the Mareterra land reclamation and development project saw 110 apartments and 10 villas added to Monaco’s housing supply. With this new influx, transaction volumes in the Principality soared to record highs. Total new build sales volumes reached nearly €3.7 billion and total sales volumes for all properties smashed through previous records to reach €5.8 billion in 2024.

The total count of transactions in Monaco rebounded by 21% from the 2023 levels to 466 sales, largely boosted by the number of new transactions at Mareterra. With 101 new-build sales in 2024, this represents a 260% increase from 2023 levels. Historically, new-build sales account for less than 10% of total sales in Monaco; however, the increase in supply from the launch of Mareterra brought the share of new build sales to 21% of the total sales for 2024. This heightened number of transactions largely mirrors the trends in the most recent census data from Monaco – setting a new record for the Principality.

The price range of new build sales has seen a dramatic shift in the previous two years. In 2022, sales of new properties with a value of greater than €10 million made up just 28% of the new development market. In 2023, that value grew to 61% and in 2024, it now sits at 75%. This demonstrates continued interest in ultra prime new developments, such as Mareterra, and the continued impact of residency rule changes – which have increased the appeal of larger apartments in the Principality.

While sales of studios and one-bedroom flats still account for nearly 50% of the total sales in Monaco, this share of the total has been slowly declining since 2020. Sales of two and three-bedroom apartments account for 36% of the total sales in 2024, demonstrating the continued popularity of larger home sizes, in line with stricter residency requirements. Year-on year, three-bedroom apartments have been taking an increasing share of the total sales – and, in 2024, make up nearly 15%.

Location, location, location

Purchasing a property in Monaco isn’t just about being in Monaco itself, each of the districts within the Principality has its own distinct personality. When looking at the submarkets, Jardin Exotique and Larvotto stand out as regions that have seen impressive annual price growth – with 20% and 48% respectively in 2024. Monte-Carlo remained the most popular market for the count of resale transactions, seeing 11% year-on-year growth. Monte-Carlo also accounts for 21.6% of residents in the Principality, 22% of the housing stock and onethird of the resales in the Principality in 2024.

Larvotto, where the new Mareterra development is located, is among the least densely developed residential markets in Monaco, with only 1,263 residences in the submarket. This number does not include Mareterra, as the census only includes properties built before 31 December 2023. However, it should be kept in mind that changes in price in this submarket will be magnified by the new development.

Pricing in Monaco’s districts is as distinct as the districts themselves. Larvotto, by far and away, has the highest average prices per square metre at €97,563, largely driven by Mareterra. The district has historically had the highest prices per square metre in the Principality as there have been limited numbers of property transactions each year in this highly desirable district.

Trial period: the Monaco rental market

Monaco remains the most expensive location in which to rent residential property worldwide, well above the average asking rents of New York (12%), London (146%), Hong Kong (52%) and Geneva (232%) – even though prime rents in these locations have also increased across the board. For many prospective residents of the Principality, renting a property and getting a feel for the lifestyle is often the first step before searching for an apartment to purchase.

Within the Savills World Cities Prime Residential Index, prime rents increased by 4.4% in the year to December 2024. Monaco has once again beaten the global trend, with rents in the Principality rising by 6% in 2024 to €114.50 per square metre, per month. Three-bedroom apartments have seen the strongest increases in rental prices, growing by 56% to €142.30 per square metre, per month – echoing the trend we’ve seen in the purchase market, that size matters.

Outlook

Confidence is a key driver for prime residential markets worldwide, and with the perceived safe-haven status of Monaco, buyers and renters will continue to be attracted to the Principality. This ongoing and elevated demand will likely continue to support pricing, but transactions are expected to remain at a steady level due to the limited supply of property.

Of the few projects currently in the pipeline, Mareterra, Bay House and L’Exotique have all been completed – with the latter two bringing only 69 apartments and five villas to the Principality’s residential supply. Land constraints mean other significant new developments are unlikely, certainly in the near future. As such, Monaco’s property market should see sustained capital growth looking forward.

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