In its annual Monaco property report, Savills announced today that Monaco remains the most expensive prime residential market in the world with an average price per square meter now at €48,150.
Of the country’s eight neighborhoods, the report shows the district of Monte Carlo as most expensive, with an average price of €53,000 per square meter.
The average price per square meter in other districts comprise Fontvieille (€52,342), La Condamine (€52,280), Les Moneghetti (€45,455), Jardin Exotique (€35,383) and La Rouse (€42,549). For Monaco-Ville and Larvotto, the 2019 average resale price was €7,680,000 and €8,266,000 accordingly.
Only Hong Kong (€44,700 sqm) comes close the Monaco’s residential property values. In New York (€24,300 sqm), prime property costs half as much as the Principality, while London (€18,500 sqm) and Paris (€15,400 sqm) are 60% and 68% less respectively.
Transaction volumes across Monaco fell from 523 transactions in 2018 to 462 transactions in 2019, although sales of properties above €10 million increased by 64% year on year.
“The increase in the number of high values sales was partly driven by an uptick in the volume of villas being sold, often for redevelopment, and Monaco’s continued status as a premier location to live and invest,” says Irene Luke, head of Savills Monaco.
“Demand for larger properties is also being driven by the increased scrutiny of buyers claiming residency to ensure that the property being purchased meets the needs of the entire family. This trend is expected to continue after Covid-19 has passed as families prioritize space.”
Sophie Chick, head of Savills World Research, says, “Looking to the year ahead, while the economic impact of Covid-19 is still largely unknown, the residential market in Monaco is well placed to weather the storm of any economic downturn.”
The global real estate advisor says the average sales price in Monaco fell by 1.3% in 2019 compared to 2018, when there was an exceptional rise of 18.1%.
Taking the Global Financial Crisis (GFC), as an example, when prices per square meter in Monaco fell by 13% in 2009 compared to 2008; however a year later, they had returned to pre-GFC levels. Transaction volumes, however, took three years to recover to 2007 levels.
Monaco also ranks as the most expensive location in the world to rent residential property with an average rent of €126 per sqm per month. This is 60% higher than New York, the second most expensive location in the Savills Index.
Over the year to February 2020, rental values in Monaco increased by 20% across all property types. This high demand mirrors the sales market in that renters need to demonstrate that the property accommodates their needs in order to apply for a residence permit.
Article first published May 27, 2020.