Monegasque real estate: a dynamic market despite the health crisis
For four years, the Principality of Monaco has held the record for the most expensive real estate market in the world. Despite the pandemic and the consequences of the health crisis, the Monaco market remains dynamic and attractive. According to the British agency Savills, a specialist in real estate consulting and services, the average price per square meter in the Principality reached € 47,600, a drop of 1.1% compared to 2019. By way of comparison, the price in Hong Kong reaches € 39,600, while in New York it is € 22,200. Further in the ranking, we find Paris with € 15,600.
The most exclusive neighborhoods: always a success
The Principality of Monaco's real estate market attracts thousands of investors who wish to seize the opportunity to purchase a luxury apartment or villa in this independent state nestled on the shores of the Mediterranean. Monte-Carlo, which stands out for its glamorous and chic lifestyle, has always been a point of attraction for elites around the world in search of exclusivity. Larvotto, Monte-Carlo and Carré D’Or (Casino Square) thus remain the most popular areas. In 2020, despite the health crisis, these three Monaco sectors continued to meet with great success with buyers.
The goods offered on the booming Monegasque market are diverse and varied. These include independent twentieth-century villas, apartments in high standing residences built over fifty years ago or in very modern prestige buildings such as the Residence Petite Afrique or the Tour Odéon, a double skyscraper of 170 meters inaugurated in 2015. The new Portier “Marreterra” project, where the price per square meter reaches 100,000 euros, is also popular. This last major operation of the real estate market in Monte-Carlo concerns the expansion of the city towards the sea. In addition to parks and museums, the 2 billion euro project includes 120 luxury apartments.
The real estate market in Monaco during the Covid-19 period
The health crisis has resulted in various restrictions, including those relating to travel. It has become more complicated to sell property to foreigners, forcing the Principality's real estate market to do business primarily with Monaco residents. The sale of goods worth less than 5 million euros, which accounts for 71% of local transactions, recorded a loss of 6%. Despite this, in Monte Carlo real estate prices have more than doubled over the past decade. Tax breaks, quality of life, and various sporting and entertainment events continue to attract investors from all over the world, including celebrities.
In addition, the British, in the context of Brexit, are numerous to let themselves be tempted by Monegasque life. They choose to invest in Monte Carlo, fearing a tax hike in the UK. Note that the age of investors has dropped significantly, with new owners averaging 35 to 55 years old.
In conclusion, if the global real estate market suffers the consequences of the pandemic, the Principality of Monaco remains a safe bet, and is doing well by offering a wide variety of luxury goods, and by showing real dynamism in the planning of its territory.