The Monaco property market enjoyed a record year in 2014, achieving total real estate sales of €2.4 billion. Transaction volumes in 2014 also exceeded Monaco’s previous record year in 2007 by 21%, with a total of 555 properties sold in 2014.
An unusually high percentage of these purchases belonged to the ultra-luxury homes sector as La Costa Properties reported earlier this month. Experts in Monaco suggest the Euro’s recent weak exchange rate as the prime contributing factor behind this increase.
While new housing developments represent a small and exclusive sector of global real estate opportunities, nonetheless Monaco has, in recent years, put a particular emphasis on constructing ultra-luxury homes, with more bedrooms at higher price evaluations. Consequently, new build sales have been largely responsible for the upturn in luxury real estate in Monaco, contributing €345million, 2.5 times the volume recorded in 2013 and 13 times that of 2008.
In spite of this, average household prices in the Principality have remained static due to a significant decline in the strength of the Euro. The result is that property prices per square metre in Monaco have fallen in the global property market below Hong Kong. Monaco real estate is subsequently at its all-time most lucrative for foreign investors from America, the UK, Switzerland, Russia and China. Whilst a €2,000,000 property would have cost $2.8 million last year for example, it now costs $2.2 million.
The recent figures are expected to continue rising into 2015 as the Euro remains weak and Monaco remains one of the world’s most attractive locations to own an ultra-luxury home. Monaco’s ideal location at the heart of the Mediterranean, it’s history, and choice of luxury events and recreational activities make it particularly enticing over other emerging luxury real estate markets.
If you are interested in luxury real estate in Monaco, browse our collection of premium Monaco properties or contact La Costa Properties for advice.