The real estate market in 2018 saw Monaco property resales back to the 2016 level of 2.2 billion euros. In September 2018, figures from the first quarter already indicated that this would be the case, whereas, in 2017, resales had fallen to 1.8 billion. However, this data conceals some rather different realities and significant changes.
In 2018, between 430 and 440 apartments were sold, compared with 520 in 2016 for an equal amount and 555 in 2014 for slightly more than 2 billion. Undoubtedly, a greater number of large apartments, accompanied by significant price increases need to be taken into account.
The average Monaco property price per square metre is probably between 45,000 and 50,000 euros, according to the president of the Real Estate Chamber. For two years, prices fluctuated at around 40,000 and 41,000 euros. However, the notion of an average price seems to be increasingly less meaningful because prices range between 30,000 and 100,00 euros per square metre, depending on factors such as the geographical location of an apartment and on which story it is situated. As we all know, the highest Monaco property prices are found in Monte Carlo – particularly around Place du Casino – and in Le Larvotto, but also sometimes in the Tour Odéon.
In 2012, the resale market almost returned to its 2008 level (more than 1 billion) before doubling to more than 2 billion in 2014. Similarly, average prices dropped in 2009 and then rebounded to more than 31,000 euros per square metre in 2011 and 41,000 euros in 2016. A level of more than 45,000 euros in 2018 seems probable, although, again, this figure covers very different data.
Clients these days often live in the Principality already and want to invest in real estate rather than anything else. New clients are apparently scarce, although people in their forties or fifties are still arriving.
Also noteworthy is the fact that estate agents do not always seem to benefit from strong Monaco property resales. They face competition from increasing numbers of property traders and various intermediaries.
As far as new properties are concerned, the 2018 market was essentially driven by the completion of Le Stella. Some apartments prestigious buildings sold for between 70,000 and 80,000 euros per square metre.
The rental market is less active than it could be but remains buoyant, with reasonable periods for finding tenants and leases frequently increasing by between 3% and 5%.
The end of the year saw some issues with leasing studio apartments, with prices reaching high levels and rates sometimes being adjusted to adapt to the demand. Industry professionals also seem to regret that the rent watchdog has not yet seen the light of day to provide them with clearer evidence for making quantitative and qualitative comparisons.
Yet globally, the Monaco property market is doing well, all sectors combined, even though the presence of a large number of property traders is making some professionals fear that it might take on a speculative character.