Analysis of the Monegasque real estate market: first quarter 2025
While 2024 was a historic year for real estate in Monaco with nearly €5.9 billion in transactions according to the 2024 Real Estate Observatory published by IMSEE, the beginning of 2025 seems to confirm this exceptional dynamic. At the heart of this unprecedented phenomenon, the emblematic Mareterra project, launched ten years earlier, symbolizes this spectacular rise in power.
"We have seen record figures in 2024 thanks to Mareterra. At the Petrini Exclusive Real Estate agency, we are now seeing, in the first quarter of 2025, resales of apartments with prices even exceeding 130,000 euros per square metre, higher than the 120,000 euros mentioned by the Financial Times"says Eugenia Petrini, a seasoned professional with more than 40 years of experience, including 30 years in Monaco.
Monaco, a haven for new British and Swiss investors
The Principality is also experiencing a marked influx of British buyers, a direct consequence of the British tax reform on "non-domiciled" residents. Now taxed on all of their global assets, these wealthy residents are looking for safe alternatives. A recent study by Knight Frank confirms this trend: Monaco appears to be at the top of the list of alternative destinations for wealthy British investors, seduced by its tax security and political stability.
"This British clientele arrives with a real life project. They are no longer just looking for an attractive tax system, but an environment where their assets will be secure in the long term," says Eugenia Petrini.
At the same time, an ultra-wealthy Swiss clientele from Geneva and Lugano is also making its debut. "Unlike other international buyers, the Swiss consider Monaco above all as a secure asset investment. They are investing heavily in new projects like Mareterra," says Eugenia Petrini. This trend is confirmed by data from several Swiss wealth managers, noting a significant increase in interest in Monaco at the beginning of the year.
Monaco's exceptional attractiveness is causing unprecedented pressure on the rental market, which is facing a growing shortage. Eugenia Petrini clearly mentions this problem: "Even with very high monthly budgets, for example 10,000 / 15,000 euros for a three-room apartment, customers have great difficulty finding accommodation. The private rental supply is still shrinking since priority is given to housing intended for Monegasque nationals. This trend is confirmed in recent IMSEE statistics, showing a steady decline in the available private rental stock.
Real estate resales: the Monegasque paradox
However, while new sales are exploding, the resale market is experiencing a notable slowdown, with a 5.9% drop noted by the IMSEE. "This situation is a direct result of the excessive prices offered by many sellers," explains Eugenia Petrini. This is an astonishing paradox in a context where demand remains high. "Many are waiting for price reductions. Some properties even end up on the edge of auctions. However, very few actually make it that far, because owners often end up agreeing to a reasonable negotiation," she adds.
Unexpected explosion in the ultra-luxury segment: Monaco's strategy
Far from a general slowdown, the ultra-luxury market (more than 50 million euros) is experiencing a spectacular rise. "At the beginning of 2025, contrary to the predictions of a speculative bubble around Mareterra, we are witnessing an increase in transactions of very high amounts, from 70 to more than 100 million euros per apartment," reveals Eugenia Petrini.
This dynamic is fully in line with Monaco's official strategy, materialized in particular by the work of the Monte Carlo Private Label, intended to attract the most important international fortunes. "These investors are not looking for immediate rental profitability. Their primary interest is the prestige, security and exceptional quality of life offered by Monaco," insists the specialist.
Faced with these paradoxes and this growth in the ultra-luxury segment, Eugenia Petrini now recommends buying rather than renting: "Even if prices remain very high, real opportunities are emerging, provided you choose your location carefully. Each building has its own investment dynamic. »
However, she warns: "You shouldn't expect to make 'deals' by buying cheap. In Monaco, a good deal means investing smartly and strategically, with a long-term horizon and anticipating future valuations."
The first quarter of 2025 once again confirms the uniqueness of the Monegasque real estate market, marked by growing demand from very wealthy international individuals. As Eugenia Petrini points out: "Despite intense competition with more than 150 real estate agencies on just 2 km², our family-owned agency Petrini Exclusive Real Estate continues to attract a very high-end clientele thanks to our exclusive network and our tailor-made service."
Faced with an unstable international context, Monaco seems to be further strengthening its status as an exceptional safe haven on the global real estate market.
