Blog on real estate in Monaco

Average property prices in Monaco reach a new all-time high

Average property prices in Monaco reach a new all-time high


2021 was marked by the recovery of the real estate market. In Monaco, as in the rest of the world, the growth in real estate prices has been supported by interest rates decreased at historically low levels and by the exceptional performance of financial markets. After the shock caused by the Covid-19 pandemic on all the world economies, central banks injected phenomenal amounts of liquidity in order to finance the recovery and to support financial and real estate asset prices. 
Real estate markets in Monaco, as in the rest of the world, have benefited greatly from these ultra-accommodating monetary policies. It is in this context that the average price per square meter has reached a new record in Monaco, rising from 47,619€ in 2020 to 51,912€ in 2021. That is an increase of 9%.

Evolution of prices per square meter in Monaco since 2006

 

Number of real estate transactions still below its historical record
While the average property price in Monaco has reached a new historical high, the number of transactions in the existing property sector is still 25% below its historical record at 417 property transactions in 2021 compared to 555 property transactions in 2014. The inverse evolution of these two curves can be explained by the fact that, on the one hand, property owners seeing prices increase year after year prefer to wait rather than sell in order to continue to benefit from the increase in prices. And on the other hand, by the fact that the increase in prices reduces the pool of investors who can afford to buy a property in Monaco.

Smaller apartments are easier to buy and sell 
Small apartments (Studio and 2 rooms) accounted for 58% of real estate transactions  in 2021. It is in fact this segment of the real estate market that offers the greatest liquidity to investors on both the supply and demand sides.
 

Number of existing property transactions per year

 

Reduced supply of large appartments pushes prices up 
It is particularly in the category of very large apartments (5 rooms and more) that the increase in prices and number of transaction have been the strongest. The principality's firm policy on obtaining a residence card encourages wealthy people to live in Monaco with their families, which mechanically leads to an increase in the price per square meter of large apartments, where demand largely exceeds supply.


Evolution of prices per square meter in Monaco by type of apartment


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