Monaco residential property is now the most expensive in the world

28 April 2017

2016 saw the average re-sale price reach a record high of €41,400psm,  up 180% in a decade, a rate of growth largely unseen in developed economies. 

A record €2.7bn of residential property was transacted in 2016. This was the third year running that total transacted exceeded €2bn, reflecting very strong demand for limited available product. Only 553 properties were sold in 2016, a small increase on 2015 which saw 547 properties transact.

There is a significant price premium for new build. The average selling price of  new build properties is €13.7m, three times higher than resale properties. Of the 553 properties sold in 2016, just 33 were newly built, accounting for just 6% of all transactions.

New developments, such as Tour Odeon and La Petite Afrique have brought new properties in Monaco up to the same standard that is seen in other major world cities.

A large proportion of Monaco’s housing stock was developed in the 1960’s and 70’s and many of these properties are now looking dated and ripe for renewal and refurbishment. International architects are raising the design stakes, La Petite Afrique was designed by Brazilian architect Isay Weinfeld and the Richard Rogers designed Sporting D’Hiver is under construction. Civic buildings are getting the same treatment, the Yacht Club de Monaco was designed by Foster and Partners.

However there remains a shortage of new properties for sale. With prices at record highs, wealthy vendors are unwilling to negotiate down and transaction volumes are now falling.

Paul Tostevin, associate director, Savills World Research, said, “Given a limited pipeline of new development, coupled with robust demand, we do not foresee any potential for downward price adjustment in the near term.”

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General Enquiries

Savills Margaret Street

 

Key Contacts

Irene Luke

Irene Luke

Partner

Savills Monaco

+377 97 70 42 00

 

Paul Tostevin

Paul Tostevin

Associate Director
World Research

Savills Margaret Street

+44 (0) 20 7016 3883