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Monaco homes are most expensive residential property in the world
Van Hang 09:30, 2017/05/25
Residential property in Monaco is now the most expensive real estate in the world. Our latest research found that 2016 saw the average re-sale price reach a record high of €41,400psm, up 180 per cent in a decade, a rate of growth largely unseen in developed economies.


 
A record €2.7bn of residential property was transacted in 2016. This was for the third year running that total transactions exceeded €2bn, reflecting very strong demand because  of  limited availablability  of products. Only 553 properties were sold in 2016, a small increase compared with  2015 when  547 properties were traded. The below graph shows the price difference between prime and ultra prime property in Monaco.

There is a significant price premium for newly built houses  in Monaco. The average selling price of newly built properties is €13.7m, three times higher than resale properties. Of the 553 properties sold in 2016, just 33 were newly built, accounting for just six per cent of all transactions.

New developments, such as Tour Odeon and La Petite Afrique have brought new properties in Monaco up to the same standard that is seen in other major world cities.

A large proportion of Monaco’s housing stock was developed in the 1960s and 1970s and many of these properties are now looking dated and ripe for renewal and refurbishment. International architects are raising the design stakes, with La Petite Afrique designed by Brazilian architect Isay Weinfeld and the Richard Rogers-designed Sporting D’Hiver is under construction. Civic buildings are getting the same treatment, with the Yacht Club de Monaco being designed by Foster and Partners.

There remains a shortage of new properties for sale, however. With prices at record highs, wealthy vendors are unwilling to negotiate down and transaction volumes are now falling. In spite of this, given a limited pipeline of new development coupled with robust demand, we do not foresee any potential for downward price adjustment in the near term.
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