Global real estate brokerage Savills has crowned Monaco the most expensive place in the world to buy property for the fifth year in a row.
A combination of a lavish lifestyle, a favourable tax system, and political and economic stability coupled with limited land mass has helped real estate in the city-state reach record highs, with property price per square metre doubling in the last decade.
Perched along the French Riviera, Monaco is one of the smallest countries in the world, second only to the Vatican. Residents enjoy lavish resorts, a high concentration of award-winning restaurants, a world-class healthcare and education system, virtually no crime, and a busy calendar of events, including the famed Monaco Yacht Show and the legendary Monaco Grand Prix. All this, and more, makes it easy to see why the principality attracts UHNWIs, giving rise to its moniker as a millionaire’s playground.
Price per square metre doubles in a decade
According to the most recent annual Real Estate Observatory report, published by the Monegasque Institute of Statistic and Economic Studies, the average price per square metre for property in Monaco was 47,619 Euros in 2020. Compare this to other prime real estate hot spots. According to Savills, the average 2020 price per square metre in Hong Kong was 39,600 Euros and in New York 22,200 Euros.
According to the Real Estate Observatory Report, the record high for property in Monaco was in 2018, when the average price per square meter peaked at 48,7999 Euros. While the average price per square metre cost across Monaco has dropped marginally – likely due to the pandemic – this trajectory is improbable to continue.
Indeed, property prices in Monaco have shown a steady rise over the years, offering savvy investors a healthy return on investment. Compare the 2020 average price per square meter to the 2006 average per square metre cost of 14,784 Euros, and it’s clear to see prices have skyrocketed, with demand regularly outstripping supply as the world’s wealthiest seek to invest in the principality and benefit from its many offerings.
Larvotto is Monaco’s most expensive district
While Monte-Carlo is the district that is synonymous with the principality, Larvotto has the highest average property per square metre cost.
The price per square metre in this exclusive district was 65,000 Euros in 2020, according to the Real Estate Observatory report, compared to Monte Carlo, which saw the average property price per square metre inch just above 50,000 Euros.
The district of La Condamine saw an average price per square metre cost of 47,412 Euros in 2020. This was the first time that prices in this district dropped below the 50,000 Euro mark since 2017.
Les Moneghetti had the lowest average price per square metre cost at 38,258 Euros.
Super prime developments
Monaco continues to react to the ever growing demand for real estate.
Innovative developments such as Mareterra, scheduled to complete in 2025, will offer super-prime real estate, including rare waterfront villas that will likely be amongst the most expensive properties in the world.
Other property developments catering to the demands of UHNWIs seeking to invest in the principality include Bay House Monaco, which is being built on the one of the last remaining large-scale building plots in the principality, and L’Exotique.
Offering a solid investment opportunity coupled with the benefits that living and owning property in Monaco brings, there is no question that the principality will likely continue to hold onto its crown as the world’s most expensive place to buy property.