Luxury home prices in Monaco soar due to lack of development

Values of luxury real estate in Monaco reached €53,000 per square metre this year, according to a new report from Knight Frank Estate Agents.

The independent region on the French Riviera has long-remained the home of the wealthiest in the world and home to more than 10,000 millionaires. Now prices are seeing a further boost due to a lack of development in this highly sought-after area.

“Monaco remains at the top of global wish lists, with no other city in the world boasting the same wealth density,” says Kate Everett-Allen, head of international residential research at Knight Frank.

Not one residential unit was completed within the principality in 2016, which has put further pressure on prices in the short to medium term. While there is residential development underway, it’s a way from completion and 75% of properties being built are either social housing or high-end built-to-let apartments.

With its only opportunity for expansion to extend into the sea, Monaco’s latest €2 billion land reclamation programme will see six hectares of new land created from Sicilian sand. On it will sit 120 new high-end apartments, where prices will be in excess of €100,000 per square metre.

These are prices that ultra-prime stock in Monaco are already achieving, especially in places like the affluent Carré d'Or area. Of the 120 units being built, 50 have already been retained by the developer, leaving just 70 to be sold.

Knight Frank estimates that by 2026 Monaco will be home to 16,100 millionaires and 1,450 ultra-high net worth individuals.