2022-05-27-莱坊-Monaco_Insight_Report_2022_2页_519kb

Monaco Residential Market Insight Summary

Core Content

Monaco's residential market has shown significant growth and transformation in recent years, driven by a combination of economic, social, and infrastructural factors. The market is attracting a growing number of ultra-high-net-worth individuals (UHNWIs) and high-net-worth individuals (HNWIs), with the former expected to increase by 23% over the next five years. This trend is supported by the Principality's reputation for security, privacy, and high-quality living.

Key Market Trends

• Residential Price Growth:

  • Average residential prices in Monaco increased by 9% in 2021.
  • The average resale property price exceeded €50,000 per square metre in 2021, breaking a previous threshold.
  • Median prices in Jardin Exotique reached €35,460 per square metre in 2021, up 24% in five years.
  • Prime prices are forecast to rise by 5% in 2022 due to strong demand and limited supply.

• Sales Volume Increase:

  • Total residential sales in 2021 reached 440, an annual increase of 7%.
  • The €5m-€10m price band saw the highest sales increase at 38% year-on-year.
  • Monte-Carlo and La Rousse accounted for 56% of all sales in 2021.
  • Three-bedroom properties made up nearly half of all sales, the highest proportion since 2006.

• UHNW and HNW Population Growth:

  • The number of UHNWIs (with more than US$30m) in Monaco grew by 5% in 2021 and is forecast to rise by 23% over the next five years.
  • The number of HNWIs (with more than US$1m) increased by 43% between 2021 and 2026.

Key Projects and Developments

• Mareterra:

  • An innovative land reclamation project adding 6 hectares to Monaco's landmass, increasing it by 3%.
  • Expected to be completed in 2025, with a projected €100,000 per square metre price for some properties.
  • This would make Mareterra the most expensive residential development globally, almost double the average prime price in Monaco.
  • Properties will use seawater temperature for heating and cooling.

• Infrastructure Investment:

  • The government is investing in Larvotto beachfront redevelopment, Heliport extension, and a new cable car linking Jardin Exotique and Fontvieille.
  • Fontvieille is set to become an urban forest with 30,000 sq m of commercial space and 80 stores by 2027, along with a multiplex cinema.

Demand Drivers

• New Residents:

  • A growing number of younger families, particularly from the UK, Scandinavia, Germany, and Switzerland, are relocating to Monaco.
  • The Principality's International School and a new British School (opening in September 2022) are key attractions for these families.

• Post-Brexit Considerations:

  • UK residents must apply for a long stay visa from French authorities before obtaining a residence card in Monaco.

Connectivity and Accessibility

• New Air Route:
  • United Airlines has announced a new daily route from New York to Nice Cote d'Azur Airport, enhancing Monaco's global connectivity.

Conclusion

Monaco's residential market continues to attract high-net-worth individuals, driven by its unique blend of security, privacy, and luxury. The market is experiencing strong price growth, with specific areas like Jardin Exotique offering good value. The Mareterra project represents a significant development in the market, with potential to redefine Monaco's real estate landscape. As the Principality continues to invest in infrastructure and attract new residents, the market is expected to remain robust and competitive.

Contact Information

• Research: Kate Everett-Allen

  • Email: kate.everett-allen@knightfrank.com
  • Phone: +44 20 7167 2497

• Press: Emma Stanley-Evans

  • Email: emma.stanley-evans@knightfrank.com
  • Phone: +44 20 7861 1182

• Sales: Edward de Mallet Morgan

  • Email: edward.demalletmorgan@knightfrank.com
  • Phone: +44 20 7167 2497

Additional Resources

• Market Newsletter: Scan the QR code for the latest news and insights.
• Research Reports: Available at knightfrank.com/research

Disclaimer

This document is for general information only and must not be relied upon in any way. Knight Frank LLP does not accept any responsibility or liability for any loss or damage resulting from its use. The content does not necessarily represent the views of Knight Frank LLP on specific properties or projects.