Monaco Real Estate: Why SBM Is Making
Property a Strategic Priority

There are certain signals that the Monaco real estate market would be wrong to overlook. The Société des Bains de Mer, an institution founded in 1863, owns some of the Principality’s most iconic addresses. When it places property development among its strategic priorities, it is a sign that entire districts may be about to evolve. 

Property: SBM’s Most Profitable Business

The figures for the 2025–2026 financial year, ending 31 March, illustrate this strategy more clearly than any statement could. Consolidated revenue reached a record €861.6 million, including €156.5 million generated by the rental property division, representing close to one fifth of total activity. Operating profit from this division amounted to €118.2 million, exceeding the combined operating profit generated by gaming and hospitality. The residential portfolio is close to 100% occupied, while rental income continues to increase in line with contractual rent indexation.

For anyone observing Monaco’s luxury property market, the conclusion is clear. SBM is historically associated with the Casino and Monaco’s major luxury hotels. Yet one of its most stable and profitable assets remains Monaco real estate itself. Scarcity here is not simply a marketing argument: it is an economic reality. It also reflects the trends documented each year by Monaco’s statistical office, IMSEE, across the Principality’s property market. Strong international demand continues to meet a structurally limited supply within a territory of approximately two square kilometres.

Monte-Carlo Bay: Residences Rather Than Hotel Rooms

The first major project concerns the Monte-Carlo Bay in Larvotto. SBM is planning to add three additional floors as part of the wider renovation currently underway across the hotel’s rooms and suites. Completion of the overall architectural project is expected around 2030. The decision itself is particularly significant. Rather than adding more hotel rooms, SBM has chosen to create very large private residences.These properties will be offered for ultra-luxury long-term rental, with private swimming pools and gardens on the uppermost level. The official explanation focuses on service quality: the resort’s facilities, including the lagoon, swimming pools and restaurants, are already operating close to capacity during peak season. But the decision also reflects a broader reality. In Monaco, an exceptional residential square metre leased year-round to an international clientele may represent a more valuable asset than an additional hotel key. This is, in many ways, the very logic of Monaco property investment, applied by one of the Principality’s most historic operators.

Thermes-Terrasses: Reshaping Historic Monte-Carlo

The second project is on an entirely different scale. Located on Avenue de Monte-Carlo, immediately next to Place du Casino, SBM intends to redevelop the Thermes Marins building, considered to be ageing, together with the neighbouring “Terrasses” building, which was recently vacated following the departure of a banking institution. The entire project will represent approximately 13,000 square metres. The announced programme includes a major wellness area of approximately 6,000 square metres, luxury retail space and offices. The upper floors will accommodate prestigious residential apartments.

Vehicles currently parked at surface level will be moved underground across three levels of parking. This will allow the creation of a landscaped public forecourt, providing a pedestrian connection from Port Hercule towards the Opera and the surrounding Casino district. The project remains subject to planning approval. Construction could begin in autumn 2027, with completion currently envisaged for 2031 or 2032. In the wellness segment, SBM has also openly acknowledged the level of competition. “Competition is fierce,” Stéphane Valeri stated, referring to Europe’s leading wellness destinations. The objective is to attract more clients during autumn and winter and, in doing so, extend the season across the wider resort.

What These Projects Mean for Monaco Luxury Real Estate

For Monaco’s property market, these announcements go far beyond the hospitality sector. They directly concern the historic centre of Monte-Carlo and the Carré d’Or, where the value of a residence depends not only on the quality of the apartment itself, but also on the quality and evolution of its immediate surroundings. Several factors contribute to the long-term appeal of a prestigious address. A landscaped public space replacing an open-air car park is one example. A strengthened luxury retail offering alongside the major international brands already present is another. The creation of a world-class wellness facility within walking distance is equally relevant. The arrival of new ultra-prime residences offered for rent by SBM, both in Larvotto and on Avenue de Monte-Carlo, also deserves close attention.

At the highest end of Monaco’s rental market, these properties are likely to establish new benchmarks and may influence the expectations of an already highly demanding international clientele. It is equally important to acknowledge the other side of urban transformation. A construction programme lasting approximately four and a half years in the heart of Monte-Carlo will inevitably have an impact on the daily life of neighbouring residences. For a purchaser, the question is not to ignore this reality, but to incorporate it into any assessment of value, pricing and intended holding period. “SBM’s projects are indicators that we follow extremely closely,” says Silvio PIRAS, Director of PIRAS IMMOBILIER. “When a group of this scale chooses to create residences rather than hotel rooms, while also investing in the public realm of the Carré d’Or, it confirms what our experience has shown us for decades: in Monaco, value is built over the long term, and addresses that benefit from these transformations tend to carry that advantage with them for years to come.”

A Vision Measured in Decades, and Beyond

One final element gives this strategy an even longer-term perspective. At its extraordinary general meeting in September 2026, SBM extended the company’s corporate duration by a further 99 years, through to 2125. Very few economic operators are able to plan their real estate investments over such a timeframe. This continuity, combined with the institutional stability of the Principality, remains one of the strongest foundations of Monaco’s luxury property market. Are you considering purchasing or renting a property in one of the districts affected by these transformations, whether in Larvotto or the Carré d’Or? We would be delighted to welcome you to our offices at Château Périgord in Monaco to discuss the opportunities and long-term prospects in greater detail.