Monaco's tiny prestige residential market on a high plateau: Savills International
Monaco experienced a surge in residential market activity in 2014 with transaction volumes exceeding their 2007 peak for the first time, says international real estate advisor Savills.
They counted 555 re-sale properties sold in 2014, putting the number of sales 21% above their 2007 activity.
The very upper tiers of the market have been the most liquid, pushing re-sale volumes in euro terms to new highs with around €2bn of re-sale property traded in 2014.
The new development market is tiny and exclusive and since the global economic downturn, developers in the Principality have shifted their focus to the global ultra-prime segment, developing larger units at higher price points. This has pushed new build sales volumes to €345million, 2.5 times the volume recorded in 2013 and 13 times that of 2008.
But average prices have remained static, Paul Tostevin, associate director, Savills World Research, said.
“Price are at, or near, a high plateau and will be for some time to come.
“The unique offering of Monaco’s global appeal and its extremely limited land supply will all combine to keep its real estate prices high with few or no mechanisms for them to fall.
"A weak euro has meant that Monaco has dropped down the global league table and is now second to Hong Kong in US dollar terms, purely on currency movements," Paul Tostevin added.
Savills expect prices to remain stable.
"Homes in Monaco are most commonly paired with London, followed by New York and Moscow.
"Monaco remains a premier destination for motor sport, yachting, gambling and recreation.
"This combination, right on Europe’s doorstep, sets it apart from almost any other city or state.
"Only Macau is beginning to come close but the attractions of the South China Sea are not the same as the Mediterranean.
"In the longer term, Gibraltar has the potential perhaps to be a rival but it will need investment and infrastructure if it is to challenge Monaco."
