The new build market

New build supply in Monaco is low, due largely to the Principality’s extreme space constraints. New home sales accounted for just 4% of all transactions in 2013. It is notable 
that the last few years have seen 
a fundamental shift in the nature 
of supply.

Since 2007 there has been a general move by developers to target the ultra prime market, in order to capture growing demand from the global elite. Transactions of four bed or larger new build properties accounted for 60% of the market in 2013, up from just 4% in 2007 and 2008 (Graph 3). At the same time, the average price of a new build property transaction increased, from €1m in 2008 to €9.3m in 2013.

This new trend has been led by schemes such as L’Oiseau Bleu (20 units), Le Monte-Carlo View (45 units) and Le Monator (19 units). These relatively small, ultra prime developments have delivered high quality product with the associated amenities demanded at this price level.

The 1960s and 70s saw a raft of mid to high rise development in Monaco, culminating in the development of Fontvieille, almost entirely on reclaimed land. A moratorium on tall buildings in the 1980s meant that few tall buildings have been developed in recent decades.

A change of stance has led to the development of some new landmark towers, most notably the 50 storey Tour Odeon. Other schemes such as the Sporting d’Hiver at Carré d’Or will be designed by world class architect, Richard Rogers. Monaco is actively tailoring its offer to remain competitive with the most exclusive addresses around the globe.

We anticipate that Monaco will become increasingly high rise in future and that there may be scope for refurbishment and rebuilding and ‘ultra-priming’ older secondary blocks and towers.

Future developments

As one of the world’s most densely populated countries, Monaco is making available new development space through urban restructuring, land reclamation, and increasingly, higher rise development. The evolution of its urban form allows Monaco to keep pace with ever increasing expectations for standards of residential product from the world’s wealthy.

Buildings

Tour Odeon: The most prominent high rise development to be built in the city-state since the 1980s, Tour Odeon will be one of the tallest residential towers in Europe, at 170m, or 49 storeys in height. The development incorporates 70 apartments, retail and office space.

Carré d’Or: A Richard Rogers scheme adjacent to the Monte Carlo Casino, to include rental apartments, retail, offices, an art gallery and conference hall. Construction is expected to begin in 2016, with completion set for the end of the decade.

Reclamation schemes

Le Portier: This will become Monaco’s eleventh ward, when built, extending between Port Hercule and the Grimaldi Forum, an area of 27.5 hectares. The scheme will encompass four city blocks, and deliver residential, administrative buildings, a theatre and marina.

Taken from
Spotlight: Monaco Residential Market