Monaco Real Estate Figures in 2021

22 March 2022

L’Observatoire de l’Immobilier

The Monegasque Institute of Statistics and Economic Studies (IMSEE) draws up an annual report presenting real estate in the Principality. Indeed, the Observatoire de l’Immobilier compiles the figures related to the real estate sector and more specifically to the private residential sector.

This study is eagerly awaited by real estate professionals as it analyses the sales and resales of flats in the Principality. These transactions concern both the new and old property markets.

Moreover, the term “sale” is used in this report when referring to a new flat or a flat under construction. “Resale” refers to the second sale of a property or the first sale within a period of more than 5 years.

Introduction

The Principality of Monaco has the most expensive price per square meter in the world. According to the IMSEE report published at the end of January, Monegasque real estate breaks a new record in 2021. The figures show that the average price per square meter exceeds €50,000 for the first time.

In 2012, the average price per square meter in the Principality was close to €30,000. Ten years later, this price has increased by almost 75% to reach an average of €51,912 per square meter. This record is symbolic because of the actual sanitary that has severely impacted the property sector.

Real Estate market and COVID-19

Despite the global health crisis and its consequences, the real estate market has maintained its level. In 2021 there were 29 additional transactions compared to 2020, an increase of 160 million euros.

In addition, the number of resales amounts to €2 billion, thus attesting to the more than satisfactory state of the sector. However, the number of resales in 2021 does not return to its 2019 level of €2.5 billion.

Although this fall of 15.3% since 2019, the Monegasque property market is doing well. The Principality’s dynamism and its tax advantages constitute a safe haven for investors in times of crisis.

Sales

As a reminder, the term “sale” refers to a new property, either off-plan or under construction.

In 2021, 90 new flats were delivered in the Principality. These properties are distributed between Mona Residence, Villa Palazzino, Villa Parana and Villa Esmeralda. This is the largest delivery since 2015, at that time 195 properties were delivered.

However, despite this significant delivery of 90 flats, only 23 were sold in 2021. Real estate sales still represent €235.6 million in 2021. This represents a 44% increase in sales compared to 2020, since only 16 new flats had been sold.

Despite this increase, the figures remain 30% lower than before the health crisis. Indeed, there were 33 sales concluded in 2019, corresponding to an amount of €320.5 million.

Resales

The term “resale” is used to refer to the second sale of a property or the first but within more than 5 years of delivery.

In 2021, resale figures increase and again exceed the 400 transactions, reaching a total of 417. This represents an increase of 5.6% compared to 2020, but still 2.8% less than 2019. The number of resales exceeds €2 billion, 7.3% more compared to 2020.

Concerning the districts, more than a third of the resales are carried out in Monte Carlo, i.e. €771 million. Monte-Carlo and La Rousse districts together account for more than half of the transactions, i.e. €1.2 billion. With an increase of 70%, La Condamine district is in third place in terms of resales per district with 48 resales. This corresponds to 10% of the total amount of resales made in the Principality, i.e. almost €202 million.

Conclusion

The report drawn up by IMSEE shows that the property market has suffered slightly from the health crisis. However, the small size of the territory, the scarcity of its properties and the constant demand enables this sector to go through the crisis without too much difficulty.

Thus, despite the health crisis, the Monegasque real estate market remains prosperous and confirms its position as a safe haven par excellence.

Key numbers of 2021 

• Average price per square meter exceeds €50,000 for the first time
• Average price per square meter has increased by almost 75% in 10 years
• Monte-Carlo is the most expensive district per square meter (59,991€ /sqm)
• Jardin Exotique is the least expensive area per sqm (35,460€ /sqm)
• One in two sales is over €6.5 million
• The number of resales exceeded €2 billion
• The majority of resales are of 3 rooms or less

Sources :

All figures in this article are from the Observatoire de l’Immobilier 2021, a report drawn up by IMSEE, l’Institut Monégasque de la Statistique et des Études Économiques.

Sales and resales are those registered by the Division des Hypothèques de la Direction des Services Fiscaux.

Discover also our article on Mareterra, the eco-district under construction.