Monaco, one of the world’s most expensive housing markets, saw surging demand for new developments last year, according to a report by Knight Frank released Tuesday.
Sales of new development units jumped to 101 in total last year throughout Monaco, more than triple the 28 sold in 2023, according to IMSEE, Monaco’s statistics office, cited by Knight Frank. The average price for new units was €36.4 million (US$38.2 million), with 20 sales above €20 million and 7 sales above €100.
These pricey deals were largely driven by the completion of two development projects: Mareterra, a €2 billion project from noted architects Renzo Piano and Norman Foster in Monte-Carlo, and Bay House, a community by Groupe Marzocco with a new campus for the Monaco International School, outside of the capital.
In fact, Monaco recorded its biggest increase in new inventory since 1993 last year, with a total of 159 delivered apartments. Maraterra alone, built on reclaimed land, expanded Monaco’s territory by 3%.
“Demand continues to outweigh supply,” Kate Everett-Allen, head of European research at Knight Frank, said in the report. “Despite the uptick in new completions, there is little in the pipeline, which is likely to keep upward pressure on prices.”
While sales for new units surged, resales went in the other direction. There were a total of 365 transactions, a 6% decline from 2023 with an average price of €6 million. Among resales, there were close to 50 deals above €20 million.
In general, the ultra-luxury segment saw the greatest increase, with a 10.6% rise in sales above €10 million, per the report.
Monaco may be benefitting from political conditions in the U.S. and changing tax regulations in other European countries, per Everett-Allen.
“With the U.K. abolishing its non-dom regime in April, Italy doubling its flat tax, and concerns over a potential trade war, Monaco will see demand strengthen,” she wrote. “The scale of that demand will depend on U.K. policy adjustments, how far governments push taxation, and the geopolitical landscape.”
