Monaco's Property Market: A Tale of Two Cities
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Loading... - Carmen Espina
- 03 Apr 2025
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A new report reveals a striking divergence in Monaco's property market, highlighting the contrasting dynamics between newly built properties and the resale market. In 2024, the average price of newly constructed properties skyrocketed to €36.4 million, a staggering six times higher than the €6 million average for resale properties. This data, released by IMSEE, Monaco's Statistics Office, indicates that while overall sales in the Principality rose by 12%, this growth was almost entirely fueled by new developments.
The secondary market, however, faced challenges, experiencing its weakest year since 2012 with only 365 transactions—a 6% decline year-over-year. Monte Carlo remained the most active district, accounting for a third of these sales, but the overall trend suggests a shift in buyer preferences towards new builds.
In stark contrast, sales of new properties surged dramatically, with 101 units sold in 2024, up from just 28 the previous year. This marks the highest figure since records began in 2006, largely driven by the completion of two landmark developments: Mareterra and Bay House.
Mareterra, a €2 billion land reclamation project, has expanded Monaco's territory by 3% and is setting new pricing benchmarks. Designed by renowned architects Renzo Piano and Lord Norman Foster, some units in this development have reportedly exceeded €100,000 per square meter—more than double the average resale price in the Principality. Meanwhile, Groupe Marzocco's Bay House, part of the Testimonio II project, introduced 56 luxury apartments and five villas, alongside a state-of-the-art campus for the International School of Monaco.
Despite subdued transaction volumes in the resale market, prices reached record highs in 2024. The average resale price per square meter climbed to €51,967, reflecting a 1.1% annual increase and a remarkable 44.3% rise over the past decade. Smaller properties saw the sharpest appreciation, with studio prices up 5.7% and two-bedroom apartments rising 7.6%. However, it is the ultra-prime segment that continues to break records, with the number of resale properties exceeding €10 million growing by 10.6%. Notably, 19 sales surpassed the €20 million mark—twice as many as a decade ago.
The new-build segment saw even more dramatic figures: of the 101 sales, 57 exceeded €20 million, and seven surpassed €100 million. Monaco delivered 159 new apartments in 2024, the highest completion rate since 1993, with Mareterra alone contributing 130 units in the Larvotto district.
Demand for larger homes is also on the rise. In 2024, 71% of new homes sold were three-bedroom properties or larger, reflecting Monaco's updated residency rules, which require applicants to secure housing that matches their household size.
"Demand continues to outstrip supply," says Kate Everett-Allen of Knight Frank. "Despite an increase in new completions, the development pipeline remains limited, which will likely sustain upward pressure on prices. With the UK abolishing its non-dom regime in April, Italy doubling its flat tax, and growing concerns over a potential trade war, Monaco is poised to see even stronger demand. However, the extent of this demand will depend on UK policy shifts, government tax strategies, and the broader geopolitical landscape."
For ultra-high-net-worth individuals (UHNWIs), Monaco remains an unrivaled sanctuary. The absence of income and capital gains tax, no wealth or inheritance tax, world-class healthcare, political stability, privacy, security, and seamless connectivity via Nice Airport and Monaco's heliport all contribute to its enduring appeal. As the property market continues to evolve, the contrasting trends between new builds and resales will shape the future landscape of Monaco's real estate sector.
