Monaco Property Market: A Prime Opportunity for Investors in 2024

The Monaco property market remains one of the most attractive and resilient in the world.
Monaco property market 2024 prime opportunity
© Tom Wheatley

The Monaco property market remains one of the most attractive and resilient in the world. Despite global economic uncertainties, the Principality’s real estate sector has demonstrated remarkable stability and growth, making it an enticing option for property investors seeking both security and high returns.

In 2023, Monaco’s property market continued its upward trajectory, with average prices reaching €51,418 per square meter, just shy of the historic high of €52,000 seen in 2021. This marks a 1% increase compared to 2022, highlighting the market’s resilience despite a global downturn in transactions.

The demand for larger properties has been a notable trend, driven by families and individuals planning to live in Monaco year-round. This shift is reflected in the increase in sales of larger apartments, with two-bedroom or larger properties seeing a significant uptick. In 2023, sales of larger apartments accounted for over 60% of new build sales and 22% of resales.

The market also saw fewer but higher-value transactions, with properties selling for over €5 million increasing by two percentage points. This indicates a strong preference for high-end, luxury properties among buyers.

The 2024 Monaco Grand Prix had a significant impact on the local economy, drawing a large influx of tourists to the French Riviera. This surge in tourism has positively affected various sectors, including real estate. The increased visibility and desirability of Monaco during such high-profile events attract potential buyers and investors from around the globe, further solidifying its status as a premier destination.

Several new developments are set to reshape Monaco’s property landscape in 2024. Projects like Mareterra and Bay House Monaco will add 166 new apartments and 15 villas, bringing much-needed stock to the market. Despite these additions, the demand continues to outstrip supply, maintaining high property values.

Prestigious neighborhoods such as Monte-Carlo, La Rousse, and Larvotto remain highly sought-after. Monte-Carlo and La Rousse together accounted for over 60% of property transactions in 2023, with Larvotto recording the highest prices per square meter at €65,857.

The European Central Bank’s recent decision to start cutting interest rates could have a significant impact on the Monaco property market. Lower interest rates are likely to reduce borrowing costs, making it easier for investors to finance property purchases. This could stimulate demand and potentially drive property prices higher, as more buyers enter the market looking to capitalize on favorable financing conditions.

Monaco’s property market continues to offer lucrative opportunities for investors. The combination of stable property values, high demand for luxury properties, and favorable economic conditions creates a promising investment environment. With new developments on the horizon and an influx of interest following major events like the Grand Prix, Monaco remains a prime destination for discerning property investors.

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