Monaco is one of the safest and most attractive real estate markets in the world. In the past decade, it has seen over 50% growth and offers an attractive investment in one of the most resilient countries in the world. Here are some trends that Michele Tecchia, a real estate agent, expects in this market in the next few months to a year.
Michele Tecchia: Two room apartments are becoming popular
Two-room apartments are among the most popular residential spaces sold each year. This has been a trend in the last two years. In 2020, over 129 units were sold before an increase of 8% in 2021. Over 150 units will have been sold by the end of 2022. They were followed by studio apartments, and the last was 5-plus-room apartments.
Michele Tecchia expects these properties to sell in a similar fashion in the near future. Prices are skyrocketing across the country, forcing most buyers to downsize to the smallest sizes they can afford. The two-room apartments are quite pricey, but they are the most affordable for most first-time home buyers in this area.
Most property transactions will go for more than 5 million Euros
Monaco is one of the most expensive property markets in the world thanks to its luxury properties and location. To show its position as the top luxury property market, most of the properties on the market are selling for about 5 million euros. About 50 percent of the properties in 2021 were selling for between 5 and 10 million euros.
This has jumped to a whopping 60% in 2022. Market analysts expect the increase to continue in the coming year. Therefore, according to Michele Tecchia, buyers will have a hard time getting any property worth less than 5 million euros in the near future.
Michele Tecchia: Monte-Carlo and La Rousse will be the most popular property districts
Over half of the property transactions in Monaco through 2021 and most of 2022 were done in the Monte-Carlo and La Rousse districts. The trend has been shaping up over the years. Michele Tecchia : “In both 2021 and 2020, 135 properties were sold in Monte Carlo each year. Since 2020, over 100 properties have been sold in La Rousse. This shows a growing interest in these two areas”.
One of the reasons there is growing interest in properties in this area is the proximity to nice beaches, the quiet neighbourhood and the luxury amenities property owners can afford in the area. Michele Tecchia expects the popularity of these districts to continue growing and attract more buyers in the near future.
On the other hand, Larvotto is the district with the lowest property transactions in Monaco, with less than 10 properties sold each year. It is followed by Monaco-Ville. However, this does not mean that these districts are any worse than the biggest sellers. Despite having sea access, property owners may not have access to some of the luxuries and amenities that are attracting buyers to the popular areas.
Price per square metre will continue to average over 50,000 Euros
Monaco’s real estate market had a slowdown in 2020 due to the COVID-19 pandemic, then picked up and has been getting robust since then. The average cost per square metre has now surpassed 50,000 euros according to Michele Tecchia. It is expected that the few properties that have been selling below this price will continue to decline in the near future. Customers will have a hard time trying to get a property cheaper than this price soon.
Among the different price sizes, the 5-plus room apartments are set to see the highest increase in the price per square meter. In the last two years, the prices have moved over 20%, with many hitting an average of 60,500 euros per square metre. This was partly occasioned by the enforced lockdowns that forced property owners to look for space where they could stay comfortable for extended periods.
On the lower end are studios, whose prices have stayed around 44,500 and 46,000 euros per square metre. It is expected that these prices will go up in 2023 and beyond but will not hit the $50,000 mark due to the slowed growth in this specific property size.
Monte Carlo will continue to be the most expensive district
Monte Carlo has been the property buyers’ dream location for the last five years. As a result, prices in this district have risen faster than in others. Several things, including its location, sea view and available amenities. Michele Tecchia expects the district to continue leading the pack in the coming future. Most sea-facing properties are expected to hit over 83,000 euros per square metre with the most spacious and furnished ones coming close to the 100,000 mark.
The area where the lowest price growth is expected is the Rock. This area contains some of the country’s oldest buildings and the majority of the country’s historical sites. The problem with the location is that many buildings are subject to protection laws. This slows down what property owners can do with them. Therefore, most buyers stay away from these areas. However, a good number of buyers looking for a place to stay can check out this area.
Property demand will outstrip supply
“Monaco is experiencing high growth in property demand through 2022” according to the realestate expert Michele Tecchia. Market watchers expect the growth to continue in the coming future. Unfortunately, the growth in the number of properties available for sale has not been increasing at the same rate. This means that we shall have more buyers looking for the few available properties, a scenario that will lead to a shooting up of the prices.
Buyers will be particularly interested in waterfront properties. Michele expects their prices to go up by over 5% in the coming year, with those in areas like Monte Carlo and Larvotto nearing the 100,000 Euros per square metre mark. All other areas will also see a considerable price increase.
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