Ever since the end of the financial crisis, the Monaco real estate market has gone from strength to strength, and culminated in a record breaking 2014. IMSEE calculated the total figure of “second hand” properties sold in Monaco at an impressive 509 and the total figure of “new” properties at 138, which means that 2015 did not quite scale the dizzy heights of 2014 but was still an extremely good year. Although 2015 fell short of the previous year in terms of sales, it demonstrated encouraging signs of prosperity and recorded impressive figures all round.
The future of real estate in the principality continues to look promising according to an official survey carried out by the IMSEE (Monaco’s statistics institute), which just published its 2016 Observatoire de l’Immobilier. The survey takes into account both ‘new real estate’, which it quantifies as properties sold within five years of completion, and “second hand” properties, which can be described as being over five years old.
When it comes to price per square meter, the average amount was down 3% (at €36,000) on 2014 but it is worth noting that since 2006 the average price per square meter in Monaco has risen by around 150% – higher than many other similarly priced cities throughout the world. This growth has largely been driven by two bedroom apartments, which continue to be highly sought after.
As far as sales of “second hand” properties were concerned, the results were largely positive with a total amount of €1.8 billion. Admittedly this was down 12.7% on 2014 but interestingly sales of smaller apartments (studios and one bedroom apartments) accounted for 60% of the total number of second transactions at 138 and 163 respectively. Although the average sale price for a second hand property in 2015 were down 3.5% on the 2014 average, it was still a very respectable €3.5 million so there is definitely no cause for concern just yet.
Sales of new properties were bolstered by the completion of several high profile developments including the La Petite Afrique, Le Meridien and the Odeon Tower. The total sales figure attained was up 31% on 2014 (just over €450m) and the highest figure obtained for new builds when records began back in 2006. It is worth noting that large apartment sales in new buildings are dominant with more than 70% of all transactions since 2013 being of apartments with more than four bedrooms.
The Monaco residential property market looks set to continue to improve and go from strength to strength in 2016, especially considering the relative stability within Monaco’s economy and its allure as a destination for people to both work and play. Few other international communities can make such a claim.