The average price of an apartment in Monaco is €34,276 per square metre (sq. m.), 9.15% down from € 37,729 per sq. m. in 2008, according to Global Property Guide research (see methodology).

It is difficult to imagine anyone paying over US$50,000 for a single sq. m. of residential real estate. But that’s the cost of the rich man’s ghetto which is Monaco.

Monaco’s yields are very low, with average gross rental yields now at 1.47% - about the same level as last year, which means rents have kept pace with prices.

We at the Global Property Guide tend to believe that yields fluctuate around a mean, in any location.  High prices and low yields are typically followed by a correction, and a shift to renting, and then a period of lower prices, and higher yields.

So where does that leave Monaco? Whatever its peculiar attractions, notably zero tax, square metre prices of US$50,000 are totally outside any normal range. So too are 1.5% yields.

Does that mean there will be a price collapse soon in Monaco? 

We keep expecting it.  Yet Monaco keeps defying our forecasts.