Bigger Homes are trending in Monaco’s Shifting Real Estate Market…

Although almost all of the Principality’s economic indicators are in the green, inflation has had consequences on the real estate market in particular, according to a new report by the Monegasque Institute of Statistics and Economic Studies. In 2023, 416 real estate transactions were carried out, or 105 fewer than in 2022. As the average price of goods increases, the drop is more moderate and amounted to €3.23 billion.

The needs of buyers is changing and the sales and resales of small apartments (studio and 2 rooms) is declining. The average price per m2 of resales was €51,418 in 2023 in Monaco. (Closer to its 2021 record at nearly €52,000 per m2).

No new apartments sold in the free sector

The number of deliveries of new apartments in the free sector varies greatly from one year to the next. While there were many in 2022, no new building was completed in 2023. Despite this absence of new properties available, the major projects in progress are giving rise to “off-plan sales”. Over the first 9 months of the year alone, 28 new properties were sold in 2023. (A decrease of 68.2% compared to the record of the previous year, but still higher than 2021.)

Sale of apartments with 5+ rooms increases by 50%

The amount of sales of apartments with 5 rooms or more increased by almost 50% and represents more than 80% of the new real estate market. Nearly one in two properties has 5 or more rooms, including 3 villas. With €1.04 billion, the amount in sales in 2023 is the second highest after 2022 since the creation of this observatory (2006). Despite the sharp decrease in the number of transactions (-68.2%), the drop in value was only -12.7%.

Average apartment sells for €37.1 million

In 2023, one in two new apartments sold for more than €28 million, for an average of €37.1 million, or almost 3 times more than in 2022. Of the 28 transactions in 2023, 17 apartments were sold for more than €20 million, or more than 6 out of 10 properties. Of these, 4 exceeded €100 million.

With 388 transactions in 2023, the resale market fell by more than 10% and reached its lowest level since 2012. It is the resales of small apartments which are decreasing the most sharply with 16 studios and 28 two-room properties fewer than in 2022 (respectively -13.9% and -22.8%).

Record-breaking year for 4 bedroomed apartments

In 2023, average prices per m2 for apartments with 3 rooms or less has declined. Conversely, those with 5 rooms or more increased by 18.7% and apartments with 4 rooms beat its record to reach €56,106 or a 5% increase.

Condamine experiences biggest growth

Except in Monte-Carlo, which fell by 6.2%, the average price per m2 increased in all districts of the Principality and exceeded its historic record in 5 districts out of the 7. The strongest growth in the average price per m2 was in Condamine, where it exceeded €50,000 for the first time (€54,100 or increase of around 20%) and in Moneghetti with +18.3% to reach €46,511. At the Jardin Exotique it increased by 10.0% and surpassed €40,000 for the first time. Larvotto remains the district with the highest average price per m2 with €65,857, up 5.6%.