The Monaco real estate market in the first half of 2023
The 234th issue of the l'Observateur de Monaco, dated October 2023, offers its pages to a subject which primarily concerns the Coldwell Banker Etic Realty agency: the Monaco real estate market.
Indeed, in this special issue of the Monegasque magazine, journalists and speakers take stock of this market, both in the new and old sector, both in the area of purchase and sale and in that of rental. .
Emphasis is placed on the strong points of this real estate market: political stability which allows secure investments in the Principality of Monaco. But also and of course taxation: in fact, there is neither income tax, nor wealth tax and no inheritance tax... No more than direct taxes on land, nor taxes on capital gains, neither taxation of rental income nor indirect taxes such as property or housing taxes.
One of the important findings is the real estate profitability which is good. Monaco is often cited - rightly - as the country with the most expensive real estate market in the world (it is in fact ahead of Hong Kong, New York, Tokyo and even Geneva. And for good reason: the average price is €51,000 per month). m² in 2022! While it was “only” €29,800 10 years earlier...
What's more, during periods of crisis, no major drop in prices has ever been observed, even if the number of transactions may have been declining.
The article also notes the improvement in the quality of life: in terms of leisure offerings, quality and variety in terms of catering which is now positioned at the top level in the world, with chefs and places of the highest fame.
If we now look at the details of the Monegasque real estate market, we note that on the market for the sale of new properties, in 2022 ten apartments were sold for more than 10 million euros and 15 apartments for more than 20 million , out of a total of 88 sales!
In the former sector, 432 apartments were sold in 2022. With geographical zoning: 158 in Monte-Carlo, 181 in La Rousse district and 44 in Fontvieille, for a total of 2.3 billion euros in turnover. . Let us also note the resale sector in old properties which grew by 12% in one year.
If a slight slowdown seems to be evident in the first half of 2023, it is only in terms of the number of sales, because turnover is increasing.
Of course the international context does not spare the Principality, and we will note a detrimental increase in borrowing rates. In practice, market returns are more favorable than real estate returns in general, which diverts part of the investments that should have taken place... a priori temporarily.
Investors in any case cannot go wrong by placing their money in the medium and long term in this market, the article citing the example of studios in Périgord, an emblematic building of the Principality, the price of which has been multiplied by 4 in 20 years, going from €250,000 to €1 million today.
All this reassures us in this certainty: real estate investments still have very good days ahead of them. There is no doubt in our minds that records are made to be broken!
