Expectations from the Monaco Housing Market in 2025

Monaco's real estate market, one of the most exclusive and sought-after in the world, is poised to evolve in 2025 amid a complex economic and geopolitical landscape. As cities like Dubai and Singapore increasingly attract international investors, Monaco must continue to assert its unique characteristics and strengths to maintain its leading position. Between innovative new projects like the Mareterra extension, growing demographic pressure, and the quest for sustainability, the Principality will need to adapt to new expectations from buyers and investors while preserving its unique character. This year promises to be crucial in understanding how Monaco will navigate between exclusivity and accessibility, tradition and modernity. In this article, Petrini Exclusive Real Estate Monaco will answer key questions about the trends in Monaco's real estate market in 2025. These niche topics, though specific, are essential for investors looking to seize the best opportunities in this exceptional market.

What economic or political factor could influence Monaco's real estate market in 2025?

In 2025, Monaco's real estate market will be influenced by several major economic and political factors, notably the evolution of the global geopolitical situation. The election of Donald Trump as President of the United States, scheduled for January 2025, could impact the global economy by altering relations with powers such as China or Russia. These changes will inevitably have repercussions on future Monaco residents and their ability to invest.

However, in Monaco, the real estate market does not react immediately to global fluctuations. For example, while the global economic slowdown was felt as early as 2023 in countries like France, Monaco only truly experienced an impact on sales in 2024. This lag is explained by the specificity of the Monegasque market, closely linked to that of France but with unique resilience. This buffer period offers a valuable opportunity to anticipate trends.

Encouraging Signs for 2025

Interest rates, gradually decreasing in the Eurozone, are expected to stimulate the recovery of sales in Monaco in 2025. Although this decline has not yet triggered a significant rebound by the end of 2024, the first signs of improvement are noticeable. We are already observing an increase in purchase inquiries and the completion of several transactions, indicating that buyers are gradually returning to the market.

At the same time, the rental market, after reaching peaks, is starting to put pressure on sales. In Monaco, when rents become excessively high, many tenants consider purchasing as a more advantageous long-term alternative. This phenomenon, coupled with the need for some owners to liquidate their assets to repay loans, could lead to a dynamic recovery in sales.

The Role of New Projects and International Flows

Monaco remains a prime destination for investors thanks to its continuous development. In 2025, the completion of the Mareterra sea extension will add 6 hectares to the Principality's area, offering a new supply of apartments for sale and rent. This major project demonstrates Monaco's ability to innovate and expand despite territorial constraints.

Moreover, international trends, such as changes in British taxation post-Brexit, are likely to attract a new wave of wealthy residents, particularly Britons. These influxes will help maintain strong demand in an already scarce and exclusive market.

2025 promises to be an exciting year for Monaco's real estate. Between falling interest rates, the gradual recovery of sales, and opportunities offered by new projects, it is a strategic time to invest. At Petrini Exclusive Real Estate, we encourage our clients to take advantage of this period to seize rare opportunities before the market fully regains its strength.

How will demographic changes in Monaco affect the demand for residential and commercial real estate?

Demographic changes in Monaco directly influence the demand for residential and commercial real estate. Although the Principality's population doesn't increase dramatically in absolute numbers, each new arrival exerts considerable pressure on such a limited territory. With an area of only 2.2 km², Monaco is already one of the most densely populated countries in the world. The Mareterra extension, planned for 2025, will add 0.6 km², but space will remain a rare and precious resource.

According to projections, Monaco's population could increase by 10,000 inhabitants by 2040. This growth, although moderate, generates increased demand for housing, both in state-owned properties reserved for Monegasques and in the private sector accessible to foreign residents. Between 2016 and 2023, Monaco welcomed an additional 1,059 inhabitants, bringing its population to 38,367 people. This constant influx of new residents, attracted by the Principality's unique lifestyle, reinforces an already palpable tension in the real estate market.

One of the most visible consequences of this demographic evolution is the continuous pressure on prices. The Monegasque market, already one of the most expensive in the world, sees its prices remain at high levels or even increase. In 2024, the average price per square meter reached €52,000, with prestigious residences like the Mirabeau where prices can exceed €80,000/m². On the Mareterra extension, prices are set to be even higher, consolidating Monaco's position as a luxury market.

This sustained demand is also reflected in the rental segment. In 2024, many owners terminated leases to re-rent their properties at higher prices, reflecting the surge in rents. The growing appeal for renting, combined with limited supply, continues to stimulate the market, offering little respite to residents seeking to settle in Monaco.

Faced with this pressure, Monaco is striving to develop new real estate projects. However, spatial constraints limit the scope of these initiatives. Projects like Bay House, scheduled for delivery in 2025, add supply but are mainly aimed at a wealthy clientele. Bay House stands out for its large units, starting from four rooms, responding to a growing demand for luxurious living spaces suited to affluent families. These projects, while important, are insufficient to meet the total demand, especially that of young couples or small households.

Monaco's demographic evolution, though moderate, exerts a stabilizing effect on the real estate market. The scarcity of space, combined with constant demand for residential and commercial properties, ensures that prices remain high. For investors, this situation offers exceptional security: the value of real estate in Monaco is unlikely to drop. Even in case of price stagnation, the Principality's attractiveness continues to justify investments.

In summary, demographic growth, sustained by a constant influx of newcomers, keeps Monaco's real estate market under tension. Both a driver of development projects and a guardian of high prices, this dynamic illustrates Monaco's uniqueness on the international stage. This trend only reinforces the exceptional nature of the market, offering unique opportunities for those wishing to invest in a secure and exclusive environment.

Do you foresee a rise in certain types of properties, such as eco-friendly residences or multifunctional spaces, in the coming years?

Monaco's real estate market is undergoing significant transformation, responding to the growing expectations of an international clientele that is ever more demanding. New real estate projects, such as Mareterra or Bay House, illustrate this trend toward residences offering generous spaces adapted to a luxurious lifestyle. These constructions favor large-sized units, often starting from four rooms, with layouts designed to meet the specific needs of wealthy families. They feature separate service entrances, staff quarters, and spacious living areas, designed to comfortably accommodate multiple household members while maintaining optimal privacy.

This evolution goes beyond new constructions. Many investors and property developers focus on purchasing and merging adjacent apartments in older buildings, creating vast spaces that meet modern standards. This trend to rethink and modernize existing properties demonstrates a growing desire to maximize residents' comfort while optimizing the functionality of living spaces. The opening of kitchens onto spacious living rooms and the creation of fluid and bright layouts are now must-haves in this high-end market.

Simultaneously, residences in Monaco are increasingly integrating exclusive services to meet diverse demands. Recent buildings like the Tour Odéon offer a range of amenities, from spas and fitness centers to professional spaces such as meeting rooms or coworking areas. These services, which allow for combining professional and personal life in a unique setting, perfectly meet the expectations of new residents accustomed to similar offerings in other major global cities like Dubai or New York.

Moreover, attention to environmental issues is also redefining Monaco's real estate landscape. The Mareterra project, designed as an exemplary eco-district, embodies this transition toward more responsible real estate. Every aspect, from the construction materials used to the integrated technologies, reflects a desire to limit the ecological footprint. High-performance energy glazing, intelligent energy management systems, and the use of sustainable materials meet stringent criteria imposed by the Principality. These initiatives align with the ecological ambitions of Prince Albert II, who actively promotes sustainable solutions to achieve carbon neutrality by 2050.

The integration of these environmental standards also extends to renovations. A new law requires property developers to adhere to strict standards during refurbishments, going beyond mere aesthetic adjustments to prioritize sustainable practices. This evolution appeals to an international clientele increasingly aware of environmental issues while consolidating Monaco's reputation as a model of eco-responsible luxury.

By combining generous living spaces, multifunctional services, and a clear commitment to sustainability, Monaco is adapting its real estate market to contemporary expectations while maintaining its exclusive character. This evolution, driven by a cosmopolitan clientele, ensures the Principality a unique position among the world's most prestigious destinations.

Which areas or districts of Monaco do you think will gain popularity in 2025 and why?

In 2025, several districts of Monaco are expected to stand out due to their growing popularity, and it's clear that Mareterra will be at the center of attention. This brand-new district, a sea extension that required eight years of work, will open its doors at the end of 2024 or early 2025. Officially attached to Larvotto, Mareterra could become an entity in its own right, as it redefines Monaco's image with its ultra-modern residences, green spaces, and commitment to eco-responsibility. As a novelty, Mareterra will attract not only new residents ready to acquire a prestigious address but also investors seeking rare opportunities. Indeed, the first resales of apartments and rental requests already confirm this enthusiasm. It will not only be a place to live but also a popular destination for walks and exploration.

Directly linked to Mareterra, the Larvotto district, already highly sought after, will further enhance its attractiveness. Recently renovated, with work lasting about two years and completed in 2021, Larvotto has completely transformed. Its modernized beach and brand-new infrastructures make it a highly desirable area for residents and visitors. The promenade connecting Larvotto to Mareterra will add new dynamism, offering continuity between these two emblematic zones. Sea views, high-end amenities, and Larvotto's sophisticated ambiance will continue to appeal in 2025, both for purchasing and renting.

Fontvieille remains a safe bet. This district, born from a sea extension initiated by Prince Rainier III in the 1970s, allowed Monaco to expand by an additional 22 hectares. Today, it combines a peaceful environment, modern infrastructures, and ideal accessibility, making it particularly attractive for families and professionals. In 2022, 2023, and 2024, Fontvieille was one of the most in-demand districts, and this trend should continue in 2025. The proximity to the marina, parks, and shops makes it a sought-after area where comfort and quality of life are paramount.

The Condamine district is one to watch closely. Located around Port Hercule, it experienced the highest increase in price per square meter in 2024. This district, still relatively affordable compared to other areas, attracts a varied clientele: investors, young couples, and even entrepreneurs drawn by its dynamism. Its traditional markets, lively streets, and direct access to the port make it a unique district in Monaco. In 2025, this authenticity combined with a central position will continue to attract new residents.

Finally, Monte-Carlo, and more precisely its Carré d'Or, remain unrivaled. This area, embodying Monegasque luxury with its iconic casino, luxury boutiques, and prestigious hotels, is the "Monaco" recognized worldwide. In 2025, it will continue to be an essential address for those seeking prestige and the vibrancy of a central district. Demand there is constant, both for purchasing and renting, as it's here that the heart of the Principality beats.

In summary, Mareterra, Larvotto, Fontvieille, Condamine, and Monte-Carlo are the districts that will stand out in 2025. Each offers unique advantages, whether through new developments, authentic charm, or timeless prestige. However, it's worth remembering that Monaco remains a very limited territory, and every square meter of the Principality retains exceptional appeal.

If these districts interest you, we would be delighted to assist you in your search, whether to buy or invest in one of Monaco's most coveted locations. Our experts know these areas in detail and can offer you a selection tailored to your needs and ambitions.

How is the luxury market in Monaco evolving, and what are the expectations of high-end clients for 2025?

Monaco's luxury real estate market continues to prosper, even in a changing global context. In 2024, although the number of transactions decreased, prices per square meter remained stable or increased. This resilience is driven by a wealthy international clientele, demanding and in search of high-end services, generous spaces, innovative technologies, and sustainable solutions. For 2025, several key trends will shape this exceptional market.

Service remains the absolute priority for high-end clients. They seek more than just a property: they demand a complete and personalized experience. Residences like Bay House, the Tour Odéon, or Mareterra embody this evolution by offering exclusive services:

• 24/7 concierge to meet all residents' needs.
• Valet service and private shuttles, allowing direct access to the city.
• High-end common areas, such as business centers, meeting rooms, or private cinemas.

This personalization goes beyond traditional services: it's about offering a simplified life where every aspect of the residence is designed to adapt to residents' needs, whether for teleworking, entertainment, or daily management.

For the international clientele, generous spaces have become an indispensable criterion. These buyers, accustomed to vast properties in Dubai, London, or New York, seek spacious apartments with multiple bedrooms, dedicated staff areas, and facilities for managing their vehicles or other assets.

In response, new constructions in Monaco, like those in Mareterra, emphasize large units adapted to affluent families' sophisticated lifestyles. These generous spaces often include:

• Open and modern kitchens suitable for professional chefs.
• Staff quarters and separate areas for household staff.
• Leisure facilities, such as private spas or gyms.

A Shift Toward Sustainability and Eco-Friendly Technologies

Under the leadership of Prince Albert II and ambitious goals for carbon neutrality by 2050, Monaco places sustainability at the heart of its real estate development. High-end buyers in 2025 will increasingly favor properties integrating eco-friendly technologies, such as:

• Intelligent energy management systems.
• Environmentally friendly construction materials.
• Designs focused on reducing the carbon footprint.

The Mareterra project, for example, perfectly illustrates this evolution, combining luxury, innovation, and sustainability. This new eco-designed district meets the expectations of modern buyers who seek to combine environmental responsibility with a refined lifestyle.

The integration of technology and home automation has become an essential standard in luxury properties. Clients now expect total control of their spaces, with features such as:

• Centralized management of lighting, temperature, and security systems via apps or voice assistants.
• Artificial intelligence systems to optimize energy and anticipate residents' needs.
• Simplified management of large spaces, like the ability to turn off or program an entire apartment at the push of a button.

This technological transition responds not only to a need for modernity but also to a requirement for comfort and efficiency.

In 2025, Monaco's luxury market will continue to prosper by evolving toward a multidimensional model. High-end clients' expectations are no longer limited to traditional real estate features. They now encompass comprehensive experiences where personalized service, generous spaces, sustainability, and cutting-edge technologies coexist harmoniously.

Petrini Exclusive Real Estate is at the forefront of these trends. We assist our clients in finding properties that meet their exacting standards while offering in-depth expertise on market developments. In essence, Monaco's luxury real estate market remains a global benchmark, where innovation and exclusivity define every transaction.

What advice would you give to potential investors or buyers interested in Monaco's real estate market in 2025?

Investing in Monaco's real estate in 2025 represents a rare opportunity, but succeeding in this market requires meticulous preparation and informed decisions. It's not simply a property purchase but an investment in a unique territory where every detail counts. To maximize your chances of success, it's essential to surround yourself with experienced professionals. In Monaco, the role of a real estate agency goes far beyond that of a simple intermediary. A competent agency becomes a true strategic partner, capable of navigating the complex specifics of the market, identifying exclusive opportunities, and supporting you at every stage of your project. Unlike other markets where real estate transactions can be done directly, the confidentiality of properties and the high expectations of owners in Monaco make this assistance indispensable.

A deep understanding of the specifics of each district is also crucial for developing a solid investment strategy. Although the Principality is small, each district has its own identity and distinct potential. For example, Mareterra, an eco-responsible district by the sea, attracts clients seeking modern residences with exclusive services. The Carré d'Or, a true icon of Monegasque luxury, remains a safe choice thanks to its international reputation and historical stability. Fontvieille, appreciated for its peaceful setting and numerous amenities, particularly appeals to families and professionals. The Condamine, on the other hand, stands out for its dynamism and relative accessibility, making it a strategic choice for investors seeking rental profitability. Finally, the Jardin Exotique, with its spectacular views and competitive opportunities, presents an interesting option for long-term projects. To ensure an optimal return on investment, it's important to choose the district that precisely matches your objectives, whether residential or financial.

Financial and administrative aspects require particular attention. In Monaco, real estate transactions conclude quickly, often within a month when financing is not necessary. However, this process demands rigorous planning. Notary fees, amounting to about 6% of the purchase price, must be anticipated in your budget. Moreover, it's crucial to understand the Principality's specific tax regulations. While Monaco offers an advantageous tax framework, notably due to the absence of income tax for residents, certain obligations may apply to properties intended for rental. Professional support is essential to manage these procedures without errors or delays.

Staying informed about development projects and market trends is equally important. Monaco is constantly evolving, with ambitious projects like Mareterra or the renovation of Larvotto enhancing the attractiveness of certain areas and increasing their long-term value. Properties located in these developing districts or benefiting from future improvements offer particularly high potential for appreciation. Additionally, properties with high-end services such as spas, fitness centers, or concierge services perfectly meet the growing expectations of international buyers and guarantee sustainable profitability.

Adopting a strategic approach is crucial for success in your investment in Monaco. Unlike other markets where one might hope to find "the deal of the century," here, success relies on a deep understanding of local dynamics and emerging trends. Properties with sought-after features, such as an elevator, parking space, or exceptional view, always retain their appeal and value. Finally, it's important to think long-term, as Monaco's political and fiscal stability offers a secure and lasting framework, protected from global economic fluctuations.

In 2025, Monaco will continue to embody excellence in real estate, with unwavering international appeal. This exclusive, demanding yet rewarding market offers savvy investors a unique combination of prestige, security, and financial potential. With expert guidance and adequate preparation, this investment can become a rewarding and lasting project. To navigate effectively in this unique environment and discover exclusive opportunities, partnering with the right professionals is the key to success.

Trends for Monaco's Real Estate Market in 2025

Monaco's real estate market in 2025 promises to be an interesting period where contrasting dynamics will play a crucial role in the evolution of demand and investment opportunities. While external factors, such as changes in interest rates in Europe or global economic fluctuations, will create a shifting landscape, Monaco will continue to demonstrate resilience thanks to its unique economic, political, and territorial characteristics. Large-scale projects like the Mareterra extension highlight the Principality's ability to innovate and maintain its attractiveness, even in the face of unique spatial constraints.

However, a question remains: to what extent will Monaco's highly exclusive real estate market be able to meet the new expectations of an international clientele seeking sustainability and flexibility? While eco-responsible residences like Mareterra represent a first step toward the future, the shortage of space limits large-scale initiatives. Moreover, demographic changes and the diversification of residential and commercial needs raise the challenge of combining luxury and accessibility.

In a global context where fiscal and luxury destinations like Dubai or Singapore compete for attractiveness, Monaco will likely need to refine and strengthen its strategic positioning to maintain its leadership in the global real estate market. While its advantageous tax system remains an undeniable asset, the Principality possesses other unique qualities that distinguish it and place it at the top of the most sought-after locations by an international elite.

Among these assets, the Mediterranean climate tops the list. With approximately 300 days of sunshine per year, mild winters, and temperate summers due to its proximity to the sea, Monaco offers an exceptional living environment that few other fiscal destinations can match. This climate contributes not only to residents' well-being but also to preserving their real estate assets, less exposed to extreme weather conditions.

Monaco's unparalleled security is another pillar of its attractiveness. With one of the lowest crime rates in the world and an extremely efficient surveillance system, the Principality guarantees its inhabitants unparalleled tranquility. This security reassures wealthy families and international investors, often concerned about protecting their assets and loved ones.

The central geographical position of Monaco is also a major strategic advantage. Located in the heart of Europe and in immediate proximity to major cities like Nice, Milan, or Geneva, Monaco is perfectly connected to the main European capitals thanks to Nice Côte d'Azur International Airport and high-level transport infrastructures. This accessibility is particularly appreciated by an international clientele seeking a luxurious and convenient hub.

Monaco also stands out for its political and economic stability. Governed by the princely Grimaldi family for over 700 years, the Principality has developed an effective and reliable governance model. Additionally, its independence as a sovereign country, not a member of the European Union, allows it to maintain valuable political and economic flexibility. This independence enhances its attractiveness to investors wishing to diversify their assets in an international context marked by geopolitical uncertainties.

In summary, Monaco possesses a unique combination of assets: an idyllic climate, exceptional security, an ideal location, political stability, and an advantageous tax system. At a time when other luxury destinations are emerging on the international scene, the Principality will need to capitalize on these strengths to consolidate its status as an undisputed leader. It could also further emphasize its commitment to sustainable projects, like Mareterra, to attract a clientele increasingly concerned about the environmental impact of their investments. These elements will allow Monaco to continue embodying luxury, rarity, and excellence in the global real estate market.