Real Estate Prices & Statistics
What can you buy with 1 million euro in the most sought-after places in the world compared to Monaco?
The most sought-after places in the world are typically some of the most expensive real estate markets, so what you can buy with 1 million euro can vary greatly depending on the location. Let's take a look at what you can expect to buy with 1 million euro in some of the most sought-after places in the world.
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.
THE MOST EXPENSIVE SQUARE METERS IN THE PRINCIPALITY
Looking back on the last 10 years, the real estate sector in Monaco has made a huge success. The average price per meter square has risen by 75%, giving an average price of 52,000€ per square meter. Meanwhile, certain properties can easily surpass the price of 100 000 € per square meter, and this is certainly not likely to decrease.
2021 - NEW RECORD FOR PROPERTY PRICES IN MONACO
Average property prices in Monaco reach a new all-time high. The year 2021 was marked by the recovery of the real estate market. In Monaco, as in the rest of the world, real estate price growth was supported by historically low interest rates and the exceptional performance of the financial markets. After the shock of the Covid-19 pandemic on all global economies, central banks injected phenomenal amounts of liquidity to finance the recovery and support financial and real estate asset prices.
Real estate markets in Monaco, as in the rest of the world, have largely benefited from these ultra-accommodative monetary policies. It is in this context that the average price per square meter reached a new record in Monaco, rising from €47,619 in 2020 to €51,912 in 2021. That's an increase of 9%.
RENTAL YIELD IN MONACO
Most Monegasque investors seek to make their investments profitable by buying and reselling real estate at a higher price within 1 to 4 years. But what about long-term investors who want to build up real estate assets that will provide them with regular income over a long period of time? Where should they invest and in what type of buildings? The following table, based on the current sale and rental prices of about 200 properties in Monaco, shows that investments in Studios offer for most areas of Monaco, the highest returns. Similarly, less popular neighborhoods like La Condamine and Monaco Ville offer higher yields on average than more popular ones like the Carré d'Or and Monte Carlo.
MONACO REAL ESTATE MARKET TREND AND OUTLOOK FOR 2018
Average value of transactions on the Monaco real estate market [2000 - 2017]
Looking at 2017, the average value of transactions on the Monegasque real estate market decreased by 6% compared to 2016. This decline is the result of rising nominal interest rates in the United States and the quantitative easing program in Europe, both followed by rising government bond yields. Investors must therefore support higher interest rates on their investments.
