Monaco remains the ultimate in the real estate market

We take the opportunity to take a look at the Mediterranean coast. With an average price of 48,150 euros per square meter, the Principality of Monaco remains the most expensive residential market in the world.

The real estate market in Monaco is booming: With an average price of currently 48,150 euros per square meter, the city-state on the French Mediterranean coast is still the most expensive residential market in the world. This is the result of a recent study by Savills. Especially the well-known district of Monte Carlo is one of the most exclusive residential areas. A property here costs an average of 53,000 euros per square meter, which is even higher than the Monegasque average.

From a global perspective, only the prices of the real estate market in Hong Kong can keep pace with those in the Principality. In both markets, there is a huge shortage of product and a resulting surplus of demand, which further pushes up prices. "We continue to see that demand is not abating and significantly exceeds availability. This is partly because Monaco's global reputation as a safe investment haven endures. Even looking ahead to next year, when the economic impact of Covid-19 is still largely unknown, Monaco's housing market is well positioned to weather the storm of an economic downturn," says Sophie Chick, Head of World Research at Savills. The small decline of 1.3 percent followed an extraordinary 18.1 percent rise in prices in 2018, when prices reached their premature peak.

More exclusive than Big Apple

Even prime real estate in global metropolises such as New York, London or Paris is significantly cheaper than that of the Principality. A residential property in the U.S. city of New York, for example, costs on average only half as much as in Monaco. In the European metropolises of London and Paris, 60 percent and 68 percent less must be spent, respectively.