Monaco real estate market: record number of sales in 2022

Monaco real estate market: sales volume exceeded one billion euros

2022 was a fruitful year for the Monaco real estate market, surpassing two significant records.

According to the Observatoire de l'Immobilier 2022 published by IMSEE, for the first time sales volume exceeded one billion euros, and the number of property sales in the Principality of Monaco reached 88 transactions, compared to 23 in 2021.

While 2020 cannot be considered an ordinary year due to the health emergency, 2019 can be taken as a reference point, when 33 sales were recorded. In 2022 the figure therefore almost tripled.

Buyers' appreciation for new builds in Monaco is a trend that continues to recur over the years. Strong demand for new properties is also observed, regardless of budget or apartment type.

In addition to residents, Monaco is an attractive city for international investors as well. Property prices are fairly high, but the weakness of the euro represented an advantage in 2022 for dollar-denominated buyers: over the course of 2022, prices fell by approximately 25%. Furthermore, the Monaco real estate market has historically represented a safe haven in times of very high inflation such as these.

Monaco real estate market: average price per square metre

In 2021, in the case of resales, Monte-Carlo ranked first among neighbourhoods with the highest price per square metre; in 2022 this primacy was taken by Larvotto, with a cost reaching 62,000 euros, compared to 59,000 the previous year.

In all likelihood this dynamic was triggered by the fact that that section of Monaco was entirely renovated, in addition to its seafront position. Furthermore, considering that at the nearby Mareterra transactions approach 100,000 euros per square metre, properties in neighbouring districts have also benefited from this new momentum.

Monaco real estate market: the 2023 trend

Still little data to support it, but a reversal of the trend is expected during 2023. With interest rates stabilising at high levels and the euro becoming increasingly strong against the dollar, the 2023 real estate market appears, for the moment, less dynamic, even though transaction prices remain stable.

Buyers and their preferences

Two categories of buyers stand out in the Monaco real estate market: those who buy to live and those who want to invest in Monaco. Those wishing to live in the Principality mostly favour new buildings, but also want to settle in specific areas — hence the interest in Mareterra and Larvotto, for example. When they do not quickly find the properties that suit them, prospective buyers, often from Northern Europe, turn to high-end rentals, while the influx of British buyers has now slowed due to visa processing times.

Source: Direction des Services Fiscaux, IMSEE

‍