Residential Real Estate News
Monaco's Property Market: A Tale of Two Cities
A new report by Knight Frank reveals a striking divergence in Monaco's property market. In 2024, the average price of newly built properties skyrocketed to €36.4 million -- six times higher than the €6 million average for resales. While overall sales in the Principality rose by 12%, this growth was almost entirely fueled by new developments, according to fresh data from IMSEE, Monaco's Statistics Office.
The secondary market experienced its weakest year since 2012, with only 365 transactions--a 6% decline year-over-year. Monte Carlo remained the most active district, accounting for a third of these sales.
In stark contrast, new-build sales surged to 101 units in 2024, up from just 28 the previous year--the highest figure since records began in 2006. This boom was largely driven by the completion of two landmark developments: Mareterra and Bay House.
Mareterra, a €2 billion land reclamation project, has expanded Monaco's territory by 3% and is setting new pricing benchmarks. Designed by renowned architects Renzo Piano and Lord Norman Foster, some units have reportedly exceeded €100,000 per square meter--more than double the Principality's average resale price. Meanwhile, Groupe Marzocco's Bay House, part of the Testimonio II project, introduced 56 luxury apartments and five villas, alongside a state-of-the-art campus for the International School of Monaco.
Despite subdued transaction volumes, Monaco's resale market reached record-high prices in 2024. The average resale price per square meter climbed to €51,967, reflecting a 1.1% annual increase and a 44.3% rise over the past decade.
Smaller properties saw the sharpest appreciation, with studio prices up 5.7% and two-bedroom apartments rising 7.6%. However, it is the ultra-prime segment that continues to break records.
The number of resale properties exceeding €10 million grew by 10.6%, while 19 sales surpassed the €20 million mark--twice as many as a decade ago. New-builds saw even more dramatic figures: of the 101 sales, 57 exceeded €20 million, and seven surpassed €100 million.
Monaco delivered 159 new apartments in 2024--the highest completion rate since 1993--with Mareterra alone contributing 130 units in the Larvotto district.
Demand for larger homes is also rising. In 2024, 71% of new homes sold were three-bedroom properties or larger, reflecting Monaco's updated residency rules, which require applicants to secure housing that matches their household size.
"Demand continues to outstrip supply," says Kate Everett-Allen of Knight Frank. "Despite an increase in new completions, the development pipeline remains limited, which will likely sustain upward pressure on prices. With the UK abolishing its non-dom regime in April, Italy doubling its flat tax, and growing concerns over a potential trade war, Monaco is poised to see even stronger demand. However, the extent of this demand will depend on UK policy shifts, government tax strategies, and the broader geopolitical landscape."
For UHNWIs, Monaco remains an unrivaled sanctuary. The absence of income and capital gains tax, no wealth or inheritance tax, world-class healthcare, political stability, privacy, security, and seamless connectivity via Nice Airport and Monaco's heliport all contribute to its enduring appeal.
