Monaco is home to some of the most luxurious hotels and casinos in the world where European royalty is known to rub elbows with celebrities. And now it also boasts another a distinction. According to Savills, residential property in Monaco is the most expensive real estate in the world.
The average re-sale price of residential property was EUR 41,400 per sq. metre, an increase of 180 per cent in the last 10 years, shows research from Savills. The city-state also saw EUR 2.7 billion of residential property transactions last year, which was another record.
In fact, it was the 3rd year in a row that total transactions surpassed the EUR 2 billion mark, something that highlights both strong demand and limited supply. A total of 553 properties were sold last year, only 6 more than in 2015. Of the properties sold in 2016, only 33 were newly built.
New projects in Monaco can charge a significant premium as these are extremely limited. The average selling price of new build properties is EUR 13.7 million which is 3 times higher than resale properties. There have been a few new projects launched and completed in Monaco and these have brought international standard residences to the principality’s real estate scene.
However, a majority of Monaco’s housing was completed in the 1960s and 1970s and looks dated. It also lacks the modern facilities and amenities found in many of the world’s major cities. These older properties do have the potential for renewal and refurbishment. Several international architects have been brought in to assist with this process. Even some civic buildings, such as the Yacht Club de Monaco, are being refreshed by highly respected design companies.
Even with this taking place, Monaco’s biggest problem remains a lack of supply. Owners currently refuse to negotiate on price and this has caused transaction volumes to decline. Prices will likely keep increasing with limited new developments and strong demand making Monaco a seller’s market, concludes Savills.
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