MONACO 2022 - A SURPRISINGLY DYNAMIC REAL ESTATE MARKET
Against the backdrops of the war in Ukraine and rising interest rates, Monaco's real estate market remained surprisingly dynamic throughout 2022. A large number of transactions on quality apartments and with significant amounts were recorded throughout the year. Thanks to the rising number of new developments, from January to September 2022 the number of new apartments sold surged by 583.3% compared to the same period last year. In absolute terms, the number of new apartments increased from 12 to 82 while the amount of resale (old apartment) also increased from 303 to 326 over the same period. Overall, the real estate market (new and old apartments) increased by 25.5% in volume and by 34.6% in value. This dynamism can be partly explained by the following factors which have contributed to sustaining the demand:
- A weaker Euro compared to the US dollar and the Swiss Franc increasing consequently the purchasing power of foreign investors.
- A strong growth of the Monaco economy
- The attractiveness of Monaco for HNWI as a safe haven in times of crisis
Ahead of us, the year 2023 looks more mixed, with interest rates at a high level and a looming global economic recession. It is likely that like the US real estate market, which is already in decline, that the Monaco real estate market will initiate a slowdown. This outlook should nevertheless be put into perspective with the historical performance of the Monaco real estate market which has shown great resilience during the last economic recessions.
