Monaco's Residential Property Market Analysis 2025

Defined by chronic undersupply due to extreme land scarcity and enduring demand from high- and ultra-high-net-worth individuals, the Monegasque housing market continues to exhibit exceptional resilience, with price increases observed in sales and rental segments.

This extended overview from Global Property Guide covers key aspects of the Monegasque housing market and takes a closer look at its most recent developments and long-term trends.

Table of Contents

• Housing Market Snapshot
• Demand Highlights
• Supply Highlights
• Rental Market
• Mortgage Market
• Socio-Economic Context

Housing Market Snapshot

Monaco's housing market continues to exhibit exceptional resilience and structural strength, despite periodic short-term fluctuations. According to the latest annual data from Monaco Statistics (IMSEE), the average price of second-hand units sold in 2024 reached EUR 51,967 (USD 56,249) per square meter, slightly surpassing the previous peak set in 2021. This reflects year-on-year growth of 1.1% and a cumulative increase of 44.3% over the past decade.

Data Source: IMSEE.

Larvotto remained the Principality's most expensive district, with the average price of secondary units sold rising by 48.14% year-on-year to EUR 97,563 (USD 105,602) per square meter. It should be noted, however, that this figure is influenced by the limited number of recorded transactions, with only three sales of known surface area in 2024. Jardin Exotique also recorded a substantial increase of 36.43%, with the average price reaching a record EUR 49,847 (USD 53,954) per square meter, driven by transactions in very high-end developments.

Price of second-hand properties sold, by district:

The market for newly constructed properties remained notably strong. In 2024, the average price of primary units reached EUR 36.4 million (USD 39.4 million). Although this reflects a marginal year-on-year decrease of 2.15%, values remain significantly above historical levels. The elevated average is largely attributable to a shift in transaction composition: 71% of sales involved properties with three or more bedrooms, as well as the inclusion of high-value units from offshore extension projects. Of the 101 new properties sold, 56% exceeded EUR 20 million (USD 21.6 million), and seven surpassed EUR 100 million (USD 108.2 million). The resale market also reached new highs, with transactions averaging EUR 6.0 million (USD 6.5 million), a 5.26% year-on-year increase and the highest level ever recorded in the Principality.

Data Source: IMSEE.

Monaco's real estate market continues to be defined by extreme land scarcity and enduring demand from high- and ultra-high-net-worth individuals (HNWI/UHNWI). Looking ahead, analysts expect moderate yet sustained price appreciation over the medium term, supported by structural supply constraints, persistent global demand, and the premium commanded by ultra-prime new developments.

Alessandro Ponzi, owner of Panorama Properties Monaco, states that "the fundamentals of the market suggest that long-term appreciation is likely." Likewise, Sébastien Le Graverend, Director of Balkin Estates, affirms that "Monaco's market will keep appreciating due to strong demand and limited supply," noting that it has averaged 5% annual growth over the past 30 years, a trend he expects to continue. This aligns with Knight Frank's forecast of approximately 4% price growth across the Principality in 2025.

Demand Highlights:

Record Primary Market Growth Driven by Premium Project Launches

Monaco remains an unrivaled sanctuary for HNWI/UHNWI, with sustained demand for residential property supported by the absence of income, capital gains, wealth, and inheritance taxes, alongside world-class healthcare, political stability, privacy, and security.

According to IMSEE, in 2024, the Principality recorded 466 residential sales, representing a 12.02% year-on-year increase. This growth was driven by the primary market, where transactions more than tripled to a record 101 units following the completion of the landmark development Mareterra. In contrast, resales declined by 5.93% year-on-year to 365 units.

Total transaction value reached an all-time high of EUR 5.9 billion (USD 6.3 billion). Almost two-thirds of this was generated by primary sales (EUR 3.7 billion, USD 4.0 billion), which rose by more than 80% year-on-year and have doubled over the past decade.

Data Source: IMSEE.

Structural shifts in buyer preferences continued to favor larger residences. The share of smaller units (studios and one-bedroom apartments) decreased from 58% in 2020 to 49% in 2024, reflecting changes to residency requirements introduced in 2020 mandating that applicants rent or purchase properties proportionate to the size of their household. By comparison, apartments with three or more bedrooms accounted for over 70% of new-build transactions and 17% of resales in 2024.

"The market is experiencing increased international demand for larger, turnkey apartments. Developers offering high-quality units are recording strong sales for 3-4-bedroom family units, which dominate transactions," commented Sébastien Le Graverend of Balkin Estates.

Data Source: IMSEE.

This positive momentum extended into the first half of 2025. According to IMSEE's Q2 2025 Economic Bulletin, the new-build segment recorded 57 transactions in the first two quarters of the year, the highest level since data collection began in 2006. The total value of these transactions exceeded EUR 2.5 billion (USD 2.7 billion), more than four times the previous peak of EUR 596.6 million (USD 637.2 million) recorded over the same period in 2023.

Resales also demonstrated strong performance, increasing by 36.8% year-on-year to 238 transactions, the highest volume since 2016. In value terms, resales exceeded EUR 1.5 billion (USD 1.6 billion), up 48.8% year-on-year, marking a new historical peak.

Looking ahead, market experts anticipate continued resilience in demand for Monaco's residential sector, supported by its status as a safe haven amid global economic uncertainty. "Monaco's market will stay vibrant as UHNWIs consider their security and future estate planning. UK and Italian tax changes, along with the economic uncertainty around trade tariffs, are boosting its appeal," commented Sébastien Le Graverend of Balkin Estates. Everett-Allen of Knight Frank added that the scale of future demand will depend on UK policy developments, the extent of taxation measures, and the broader geopolitical landscape.

Experts from Savills echo this sentiment, projecting sustained interest from both buyers and renters, while noting that transaction volumes may be constrained by limited supply. "This ongoing and elevated demand will likely continue to support pricing, but transactions are expected to remain at a steady level due to the limited supply of property", their latest report concluded.

Supply Highlights:

Land Reclamation Boosts Stock, Yet Chronic Undersupply Persists

Monaco's property market continues to be defined by chronic undersupply, a structural feature of the micro-state where global demand consistently exceeds availability. According to the latest population census published by IMSEE, the Principality's total housing stock reached 22,168 dwellings as of 2024, an increase of 3.4% year-on-year. Of this stock, 81% were private-sector units and 19% were state-owned. The Monte-Carlo and La Rousse districts alone accounted for 10,245 dwellings, representing 46.2% of the total supply.

Data Source: IMSEE.

New housing delivery remains highly constrained due to the limited availability of development land. Following a year with no new units delivered in 2023, 2024 saw the completion of 159 dwellings in the private, non-regulated sector accessible to foreign residents, marking the highest number of completions since 1993.

Most of these units formed part of the Mareterra project in the Larvotto district, which delivered 130 residences. This six-hectare land reclamation development extends the coastline from the Grimaldi Forum to the Formula 1 Grand Prix tunnel and includes residential properties, commercial spaces, public amenities, a marina, and a landscaped park.

Data Source: IMSEE.

With major pipeline projects now completed, market experts anticipate that future housing supply within the Principality will remain limited, putting further upward pressure on prices. "Land constraints mean other significant new developments are unlikely, certainly in the near future. As such, Monaco's property market should see sustained capital growth looking forward," commented experts from Savills.

New residential projects delivered in the non-regulated sector, 2019-2024:

Supply constraints are equally evident in state-owned housing reserved for Monegasque nationals. In response, Prince Albert launched a 15-year housing plan in 2019 targeting a 43% increase in state-owned apartments to reach 4,548 units. This initiative aims to alleviate pressure on the public housing sector and provide long-term stability for residents. Due to land scarcity, delivery has primarily relied on the redevelopment of existing buildings and vertical expansion rather than releasing new land. While the program is designed to ensure residential security for Monegasque households, government-led supply growth remains incremental and is unlikely to influence pricing or availability in the open market, which continues to serve expatriates and investors.

Rental Market:

Unprecedented Demand Continues to Drive Up Rents

Monaco's rental market continues to show unprecedented momentum, driven by the widening gap between structurally limited supply and strong international demand. Over the past two years, local real estate agencies have observed a surge in demand, resulting in a scarcity of larger family apartments on the market and lengthy waiting lists for potential tenants.

"Apartments are being rented before even officially hitting the market because the waiting lists are so long. In ten years in the business, I've never seen such a frenzy. We're living through a true rental wave," said Ilona Blanchi from Miells Christie's, as quoted by L'Observateur de Monaco.

Other local experts cited by the outlet note that while all types of properties are sought after, similarly to the sales market, the rental demand is largely focused on 3- and 4-bedroom family apartments with monthly rates ranging between EUR 20,000 and EUR 25,000, highlighting a shift in the typical tenant profile noted by agents. While Monaco traditionally attracted older clientele oriented toward retirement, demand now increasingly comes from younger families and entrepreneurs.

On the demand side, the additional pressure on the rental market has been placed by the resurgence of international travel after the pandemic, as well as several ongoing rehabilitation and restoration projects, such as the renovation of the iconic 25-story Schuylkill Tower (to be completed in 2027), which created an influx of former tenants looking for alternative rental spaces.

On the supply side, the shortage of available rental properties is exacerbated by the segmentation of housing stock in Monaco. All housing in the Principality is divided into several sectors, each regulated by different legal acts implying specific ownership and use restrictions. The only housing sector allowing for properties to be rented freely, regardless of the tenant's nationality, with lease length and rent rate set by landlords independently, is the so-called non-regulated sector (secteur libre), primarily consisting of privately owned apartments in buildings constructed after September 1, 1947.

As of December 2025, Monaco's Real Estate Chamber (Chambre Immobilière Monégasque) had around 350 residential properties listed for rent across the Principality: from studio apartments under 20 sqm to exclusive furnished residences over 700 sqm. The district with the largest number of properties listed was Carré d'Or (156), while the most limited offer at the time of research was in Monaco-Ville (2), Jardin Exotique (5), Larvotto (7), and Anse du Portier/Mareterra (9) - a recently completed new neighborhood on an artificial peninsula of around six hectares.

While no official data is available, local experts agree that a tense market has been supporting strong rental inflation in Monaco in 2024 and 2025. Valeri agency estimates an increase of 15-20% over the past year, while Petrini Exclusive Real Estate saw an average increase of between 8% and 15% in the first eight months of this year.

In the prime segment, a report from Savills estimates that monthly rents in the Principality rose by 6% in 2024 to EUR 114.50 (USD 123.9) per sqm, allowing Monaco to remain the most expensive location in the world to rent residential property, with the average asking rents well above those in New York, London, Hong Kong, and Geneva.

In parallel with surging rents, Monaco experienced an uptick in rental yields, although they still remain relatively low compared to other European markets. "A few years ago, achieving a net yield of 2% on a residential apartment was already considered a solid result," noted Florian Valeri, Managing Partner of BARNES Valeri Agency. "Today, we're seeing returns of around 2.5%, and in some instances, close to 3%." Research conducted by Global Property Guide in June 2025 found gross rental yields for residential properties in Monaco at the average level of 2.87%.

Looking ahead, rents in Monaco are expected to remain exceptionally high, although the rapid inflation of asking rates could moderate, depending on activity in the sales segment of the market. "Our internal data confirms that the room for negotiation has shrunk considerably. <…> Since spring 2025, however, we have observed renewed interest in buying. If sales pick up, pressure on the rental market could begin to ease by 2026 or 2027," said a recent market overview from Petrini Exclusive Real Estate.

Mortgage Market:

Interest Rate Ceiling Lowered, Improved Cost of Financing Supports Secondary Sales

While, compared to other countries, residential lending conditions are generally seen as having less impact on buyer activity in Monaco due to the market's focus on luxury properties and HNWI/UHNWI clients often paying in cash, the Principality's real estate sector has benefited from the lowering of interest rates across Europe and in the US driven by a series of policy cuts by the respective central banks in 2024-2025, as mortgage costs in Monaco generally track broader global trends, with rates influenced by benchmarks such as Euribor.

According to local experts cited in a recent article in L'Observateur de Monaco, stabilization of interest rates at more reasonable levels, among other factors, has once again encouraged investment and contributed to a turnaround observed in Monaco's secondary property market in 2025, following two years of decline.

As of 2024-2025, the mortgage broker Traverse International Finance estimated average interest rates in Monaco at 3-4% for fixed loans and at Euribor +1-2% for variable loans. In September 2025, based on evolving market conditions, Monaco's usury ceilings - the legally enforced maximums on loan interest rates - were adjusted by the government, with the cap on mortgage loans lowered from 4.69% to 3.34%.

Overall, Monaco's mortgage market remains highly specialized, with banks tailoring offers to wealthy and international clients, negotiating terms around individual clients' asset portfolios and risk profiles, rather than creating standard loan packages. Based on IMSEE reporting, the total value of housing credit in Monaco's financial system increased by 4.0% year-on-year in 2024, reaching EUR 13.1 billion (USD 14.2 billion). As of Q3 2025, 25 banks (including branches of foreign banks) and 6 financial services companies operate in the Principality.

Socio-Economic Context:

Strong Growth Above Regional Benchmarks Continues

Monaco's economy continues to demonstrate dynamic growth levels well exceeding those of its European neighbors and the entire region. According to figures published by IMSEE, the country's nominal GDP reached EUR 10.3 billion (USD 11.1 billion) in 2024, up from EUR 9.3 billion (USD 10.0 billion) in 2023. Adjusted for inflation, real GDP growth accelerated from 5.4% in 2023 to 8.8% in 2024.

Local experts attribute the small economy's particularly strong performance last year to the completion of a major construction project (the Mareterra district), as well as the arrival of a few top athletes, whose substantial portfolios and spending impacted the GDP. "Honestly, we didn't expect to reach this level of growth. We were forecasting around 5.6%," IMSEE Director Alexandre Bubbio commented, as quoted in Monaco Hebdo.

According to IMSEE reports, the main contributors to the GDP continue to be scientific and technical activities, administrative and support service activities (23.5% of GDP in 2024), financial and insurance activities (17.6%), and construction (9.6%). Together, they account for more than half of the wealth created in the state. Other notable economic sectors include wholesale trade (8.6%) and accommodation and food services (8.1%). Real estate activities generated 6.6% of GDP in 2024.

Compared to the regional benchmark, the Monegasque economy shows more pronounced year-to-year fluctuations (due to its small size and high sensitivity to individual transactions) but generally outperforms its neighbors. Between 2006 and 2024, the Principality's real GDP annually grew by 4.7%, on average, compared to the Eurozone average of 1.1% during the same period.

Data Sources: IMSEE, IMF.

The tourism industry, which plays an important role in the Monegasque economy, is still recovering from the severe contraction caused by travel restrictions during the pandemic, with visitor arrivals to the Principality still below their pre-crisis baseline. In 2024, IMSEE reported a little over 348 thousand arrivals, 2.1% more than during the previous year, but still below the 2019 benchmark of about 377 thousand. The latest data shows only marginal growth in tourist numbers in H1 2025 (161,977, representing a 0.6% compared to the same period last year).

The recovery in the cruise travel segment appears to be even slower. Only about 70 thousand cruise passengers were reported by IMSEE in 2024, which was 61% below the 2019 level of over 182 thousand passengers. The first half of this year, however, showed a more positive dynamic, with the number of cruise ship calls rising by 8, leading to a sharp increase in the number of cruise passengers (33,128 in H1 2025, representing a 48.3% increase compared to the same period in 2024).

As of 2024, most overnight visitors arrived in Monaco from neighboring France (24%) and Italy (12%), as well as the USA (11%) and the UK (9%). The majority of cruise passengers are traditionally from the USA and Canada.

Data Source: IMSEE.

In addition to significant (in relation to the micro-state's population) international tourist traffic, Monaco maintains a uniquely high proportion of foreign residents. According to the 2024 Census results, the total population of Monaco stands at 38,423 inhabitants, of which only 24.1% are Monegasque. More than 2,300 foreigners over the age of 18 have moved and settled in the Principality in the last three years.

Among the 145 nationalities currently living in Monaco, the largest groups of foreign residents are of French (8.4 thousand), Italian (7.5 thousand), and British (2.9 thousand) origin. Other notable communities include Russian, Swiss, and Belgian, with over 1 thousand expats each.

Due to the continuous inflow of new residents from abroad, its small territory, and tight connections with European neighbors, the Principality's labor market remains dynamic and difficult to measure with traditional statistical indicators, such as the unemployment rate. Surrounded by French municipalities and close to the Italian border, Monaco is a major employment center for the entire French Riviera region. As of 2024, Monegasque companies and administrations employed over 65,000 people, the majority of whom lived outside the Principality. At the same time, the 2024 census showed a 36.5% rate of salaried employment in Monaco for residents aged 18 to 64, meaning only a little over a third of residents were employed within the state.

According to the Employment Observatory figures, during 2024, employment increased in all three segments of the Monegasque labor market, reaching 60,454 private sector employees (+3.6% year-on-year), 5,226 civil servants (+1.4% year-on-year), and 6,420 self-employed workers (+0.8% year-on-year). The total number of jobs on the market increased by 4.8% and exceeded 78 thousand, of which over 65 thousand were in the private sector.

As of Q2 2025, IMSEE reported 66,734 jobs in the private sector, which was 1,005 jobs or 1.5% more than during the same period a year ago. With the exception of industry, transportation, and information and communication, the number of jobs was up in all economic sectors, with the most pronounced growth recorded in real estate activities (88 additional jobs, +4.8% year-on-year) and accommodation and food service activities (479 additional jobs, +4.6% year-on-year).

In general, despite its unique features characteristic of a financially independent and wealthy micro-state, one of the very few countries without sovereign debt, the outlook for the Monegasque economy is tied to global developments and its relations with the European Union. In September 2023, Monaco's government and the European Commission decided to suspend negotiations on the Association Agreement between the Principality and the EU, which had been conducted since 2015, when specific conditions of the deal stipulated by the parties could not be reconciled.

Moving forward, any new negotiations on closer ties will likely depend on Monaco's status as a high-risk country for money laundering, after it was included in the European Commission's updated list of such jurisdictions in June 2025. This decision followed Monaco's inclusion on the Financial Action Task Force's (FATF) "grey list" of countries under increased monitoring in the summer of 2024. While the authorities insist the European Commission's move should be seen as procedural, not punitive, and not indicative of new failings by the Principality, concerns over the list's impact on Monaco's financial sector remain.

"Monaco is a special case. Real estate, tourism, and catering are very resilient sectors, but finance and services could be affected by the "grey list". Monaco could gradually converge towards European economic performance, while it usually outperforms," Christophe Barraud of Market Securities Monaco previously warned following the FATF decision.

Sources:

1. Government of Monaco
   1. Monaco and the European Union: https://en.gouv.mc/
   2. The Various Housing Sectors: https://monservicepublic.gouv.mc/
   3. MonServicePublic: How to Apply for a Residence Permit: https://monservicepublic.gouv.mc/
   4. Press Release: Monaco Added to FATF's Grey List…: https://en.gouv.mc/
   5. Housing for Monegasques: and an Ambitious National Plan: https://en.gouv.mc/
   6. Tax in Monaco: https://monservicepublic.gouv.mc/
   7. Tourism in the Principality: Review and Strategy for 2025: https://en.gouv.mc/
   8. Usury: New Rates as of September 20, 2025 (FR): https://legimonaco.mc/
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   1. Population Census: https://www.monacostatistics.mc/
   2. GDP Reports: https://www.monacostatistics.mc/
   3. Employment Observatory: https://www.monacostatistics.mc/
   4. Real Estate Observatory: https://www.monacostatistics.mc/
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   6. Economy Bulletin, Q2 2025: https://www.monacostatistics.mc/
3. Chambre Immobilière Monégasque (Monaco Real Estate Chamber)
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4. International Monetary Fund (IMF)
   1. World Economic Outlook, October 2025: https://www.imf.org/
5. European Commission
   1. Monaco: Negotiations for an Association Agreement Suspended by Mutual Agreement (FR): https://ec.europa.eu/
   2. Commission Updates List of High-Risk Countries to Strengthen International Fight Against Financial Crime: https://finance.ec.europa.eu/
6. European Central Bank (ECB)
   1. US Dollar/Euro, Monthly: https://data.ecb.europa.eu/
7. Savills
   1. Spotlight - Monaco, Prime Residential, 2025: https://pdf.savills.com/
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   1. Monaco Residential Market Insight, 2025: https://content.knightfrank.com/
   2. Which City Tops Our European Prime Residential Forecast for 2025?: https://www.knightfrank.com/
9. Petrini Exclusive Real Estate Monaco
   1. Monaco Rental Market 2025: a Historic Rise in Rents: https://www.petrini.mc/
10. Monaco Properties
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11. Traverse International Finance
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12. L'Observateur de Monaco
    1. Skyrocketing Prices, Waiting Lists: Monaco's Rental Market Under Extreme Pressure: https://lobservateurdemonaco.com/
    2. Monaco's Tax-Free Rental Yields Edge Upward: https://lobservateurdemonaco.com/
    3. More and More Young People and Families are Settling in the Principality: https://lobservateurdemonaco.com/
    4. A Shortage of Rental Properties in Monaco: https://lobservateurdemonaco.com/
    5. After Two Years of Decline, the Existing Property Market in Monaco is Expected to Rebound Strongly in 2025 (FR): https://lobservateurdemonaco.com/
13. Monaco Hebdo
    1. 2024 GDP: For the First Time, Monaco Exceeds the 10 Billion Euro Mark (FR): https://monaco-hebdo.com/
    2. Christophe Barraud: "The Year 2025 Will Probably be a Year of Transition" (FR): https://monaco-hebdo.com/
14. Monaco Tribune
    1. Princely Family Inaugurates Mareterra Eco-District: https://www.monaco-tribune.com/
15. Reuters
    1. EU Includes Monaco in Updated List of High-Risk Jurisdictions for Money Laundering: https://www.reuters.com/
16. Politico
    1. EU Suspends Trade Talks With Monaco After Financial Watchdogs' Warning: https://www.politico.eu/
17. Monaco Daily News
    1. Monaco Refutes False Reports of EU 'Blacklisting': https://news.mc/
18. Hello Monaco
    1. A Unique Insight into Monaco's Real Estate Surge…: https://www.hellomonaco.com/