Residential market

Monaco is unique in that almost all of its residential stock could be considered ‘prime’. The ‘mainstream’ housing stock which serves the Principality is found in bordering French towns. Given Monaco’s restricted space, 95% of housing stock is in the form of apartments, with villas making up the balance.

Monaco’s ultra prime residential markets are focused in Monte Carlo, around the famous Place du Casino. The most desirable area is Carré d’Or. Neighbouring Fontvieille is also highly prized, offering a larger range of stock and a variety of commercial uses. That said, prized buildings can be found throughout the Principality, with the majority of new ultra prime schemes focused outside these districts due to limited land availability in the ultra prime core.

While the number of residential resales fell by 55% between 2007 and 2010, forced sales during this time were limited. Most owners managed to ride out these difficult market conditions. Monaco’s market recovery has been driven by demand from the world’s super rich seeking a safe haven for their wealth. By 2013, transaction volumes had recovered to within 13% of their former peak. Even greater liquidity has been seen at the very top end of the market where transactions, by total monetary volume, now exceed their 2007 levels – by 23% – even though average values have yet to recover to their former highs (Graph 2).

The resilience of Monaco’s residential market is attributed to the diversity of buyers it attracts. The Principality is home to residents from 128 different nationalities and its cosmopolitan nature is integral to its appeal, as is the fact that English is commonly spoken.

Those most active in Monaco’s prime markets today include British, Italian, Belgian, Swiss, Russian and Eastern European buyers. The French, as Monaco’s nearest neighbours, account for a third of Monaco’s population for historic reasons, but are no longer as active in the purchasing market in any volume as they are now subject to French income tax collected by France, although they do not pay inheritance tax on Monaco properties.

Taken from
Spotlight: Monaco Residential Market