The Principality of Monaco might be small in size, however, it makes up for it by being the most expensive place in the world to buy real estate. The average price per square metre of Monaco real estate was €47,600 in 2020 which makes it higher than any other country in the world. With such a high-value price tag, there are many real estate agencies competing for the same sales. This means it is important to choose your Monaco real estate agent carefully as if you go to more than one, there can be confusion amongst agents. Fraser Richardson at Savills Monaco is an agent that you can go to and know that your property search is in the right hands. Savills has a global reputation of being one of the finest real estate agencies in the world, with 600+ offices globally and 39,000+ employees. Below is some of the data that Monaco property broker Fraser and his team have put together on the Monaco market.
Despite the upheavals of 2020 that rocked markets worldwide, Monaco still remains a highly desirable location. At the time of writing, the Principality has managed the Covid-19 pandemic well and social distancing measures are keeping infections at a manageable level. The Monégasque market remains the most expensive location to purchase residential property worldwide, with an average price per square metre of over €47,000, though that figure is down 1.1% from 2019 levels. Hong Kong, the second most expensive location across the globe, saw average prices per square metre fall 3.9% to €39,600 in 2020. There was a slightly steeper decline in transaction numbers in 2020, down 11% compared to 2019, though this does vary by property size.
Large properties including four bedroom-plus apartments and villas saw the steepest falls in transactions, down 38% and 53% respectively. Travel restrictions worldwide have made property purchases by foreigners more difficult, turning Monaco into a primarily domestic market in 2020 and keeping most foreign buyers from making the big-ticket purchases in Monaco that they’re so known for. This trend can also be seen when examining transactions by price point.
Properties priced below €5 million was the most active price point in the Principality, with transactions down only 6%, compared to falls of 39% for properties priced over €10 million. Transactions for properties less than €5 million accounts for 71% of the total sales in the Principality, so softer declines at this price point result in less steep declines for Monaco overall. Price changes in the Principality were more consistent across the property sizes. The falls in transactions at higher price points didn’t translate to equally lower prices, showing that buyers who did purchase were still willing to pay pre-pandemic prices.
If you have any questions about the Monaco real estate market, be sure to give Fraser Richardson and his team at Savills a call to find out more. They are happy to assist you with buying, renting or selling property in Monaco or along the Côte d’Azur.
