MONACO HOLDS ONTO TOP SPOT
Monaco remains the most expensive prime residential market in the world with the average price per square metre now at €48,800, says international real estate advisor, Savills. Just over €2.7billion worth of residential property was transacted in 2018, an increase of 31%, with an average sales price of €5,200,000.
The average price per square metre in the Principality increased by an astounding 18% in 2018, at a time when many of the residential hotspots around the world are seeing prices slowing or, indeed, falling. Average prime residential values are now 237% higher than Paris, 194% higher than London and 10% higher than Hong Kong.
Prime prices: prices per square metre around the world
Source: Savills Research
Transaction volumes were also up by 15% in 2018 compared to the previous year. Sales of new build property increased by 44% to 72 sales, a record high for Monaco. However they accounted for just 14% of total sales as re-sale stock continues to dominate the market.
There was also a noticeable increase in transactions over € 5 million. In 2018, there were 142 transactions, up by 42% compared to 2017 and nearly double compared to five years ago. Driven by demand from families moving to Monaco, sales of four bedroom and larger homes increased by 59% while studio sales fell by nearly a quarter.
Occupying a space smaller than New York’s Central Park, Monaco is home to 38,000 inhabitants from 139 different countries.
“We saw a notable increase in demand from British, Middle Eastern, Turkish and Greek buyers over the course of 2018”, says Irene Luke, head of Savills Monaco.
Annual residential rental value per square metre 2018
Source: Savills Research
Monaco is also the most expensive market in which to rent prime residential property with an average rental value of €1,200 per square metre. Owning or renting a property in Monaco is one of the conditions of obtaining residency and many rent first in order to test-drive the lifestyle before making a longer-term commitment.
“Monaco has an unrivalled reputation for the world’s wealthy and we expect strong demand for property to continue to flow from all over the world. There is a huge imbalance between demand and supply which will continue to put upward pressure on prices, however we don’t expect values to increase at the same rate seen in 2018 as, globally, buyers are becoming more price sensitive.” says Sophie Chick, director, Savills World Research.