Catherine Erith is Director – Residential Valuation for France at Savills.
. Based in Nice, she regularly works in the Principality of Monaco, a property market that is as limited as it is unique.
Here, she provides a precise and nuanced analysis of a market often perceived as unshakeable: valuation methods, differences between the main neighbourhoods, buyer expectations, and prospects for change following the delivery of the new neighbourhood called ‘Mareterra’.
Savills is an international group founded in London in 1855, now present on every continent and covering all types of property. In France, the head office is in Paris and the valuation department has 26 staff, including a team dedicated to luxury property. Our residential teams are based in Paris and Nice, which allows us to cover the whole of France, the overseas departments and territories, Monaco and Switzerland. Savills Valuation SAS is an independent company regulated by the RICS. The majority of our experts are bilingual, members of the RICS and hold the RICS Registered Valuer qualification. We are also members of AFREXIM, the association of French experts, and some of our experts hold the REV qualification.
This is because it is extremely small and very opaque.
Despite the quality of the statistics published by the Monegasque authorities, it remains difficult to source reliable transactional data. Owners are very discreet, there are a large number of agencies, and information circulates very little. This is why it is essential that we have a comprehensive database that is regularly updated.
As experts, we are completely independent of transaction activities, particularly those of our local agency. We do not receive any commission and we apply very strict rules in terms of ethics and conflicts of interest. This further limits access to certain data, but it is an essential condition for credibility.
The published figures do indeed confirm a new historic record. This trend is part of a broader context of recovery in the high-end residential markets, driven by the start of a decline in interest rates in 2024. In Monaco, this momentum has been amplified by the delivery of new flagship developments, foremost among which is Mareterra, which has automatically pushed prices upwards.
These new developments also respond to increased demand for very high-end housing that meets the latest standards and offers exclusive services to its residents.
In 2024, the Monegasque market did indeed experience a spectacular increase in volumes, with 466 transactions, up 21% on 2023, and a total sales volume of €5.8 billion, a level never before achieved.
This performance is largely due to 101 new-build sales, mainly in Mareterra, representing a 260% increase in new-build sales over one year.
Historically, new-builds have accounted for less than 10% of sales in Monaco; in 2024, this share rose to 21%, which remains exceptional and cyclical.
In my view, this is not a lasting structural change, but rather the one-off effect of a massive influx resulting from new supply.
Moreover, according to the IMSEE, although the property market slowed in the third quarter of 2025, its cumulative results since the beginning of the year remain remarkable. In the new-build market, 64 properties were sold between January and September 2025, more than three times the volume recorded for the same period in 2024. The total value reached €2.6 billion, exceeding the previous record set in 2024 for this period by €1.2 billion.
The resale market totalled 328 transactions, a volume not seen since 2016. Their value exceeded the €2 billion threshold for the first time, while the previous maximum was €1.8 billion in 2023 for the same period.
It is a useful indicator, but largely insufficient on its own.
In Monaco, surface areas are calculated from exterior wall to exterior wall, which differs from French standards. A 5% difference in surface area can represent millions of euro in valuation differences, given the price levels. Beyond the price per square metre, the number one criterion is still the location of the property. Next come the residence, the floor, the view, the orientation, the size of the flat, the quality of the finishes and the services offered.
Buyers are increasingly looking for so-called ‘turnkey’ properties, whether or not they have been designed by renowned architects and/or interior designers. As renovation work is costly and time-consuming, such properties command a premium over conventional properties.
There has been a clear increase in the popularity of large properties. This trend reflects both recent supply and new requirements for Monegasque residences, which favour family apartments. At the same time, although studios and one-bedroom apartments still account for nearly 50% of transactions, their share is gradually declining in favour of two-bedroom and larger apartments, which now account for nearly 15% of sales. This clearly points to a market that is more focused on property investment and residential living than purely opportunistic.
There are indeed very marked differences in performance between neighbourhoods. In 2024, Larvotto had the highest average prices, at around €97,500 per square metre, largely driven by Mareterra, which recorded record prices due to the scarcity of large properties in Monaco and also because no construction there can obstruct the sea view.
Other neighbourhoods have seen spectacular annual increases, such as the Jardin Exotique (+20%) and Larvotto (+48%), while Monte-Carlo remains the most active area in terms of number of transactions, accounting for around a third of resales.
This confirms that, even in an area of two square kilometres, micro-location remains a determining factor in valuation mechanisms. That said, valuation remains highly subjective: some clients favour exclusive services such as those offered by the Tour Odéon, while for others this criterion is less important.
I think that after the enthusiasm generated by the delivery of Mareterra, the market could enter a phase of consolidation or stabilisation. We do not anticipate any major corrections, but rather an adjustment in the pace of growth.
One important phenomenon should be noted: newcomers to Monaco tend to rent for one or two years to test out life in Monaco. Monaco remains the most expensive residential rental market in the world, with average rents of around £114.50 per square metre per month, up 6% in 2024, which is above the global average.
Three-room flats have seen the strongest growth, with rents reaching over £140 per square metre per month, which once again illustrates the importance of property size.
Many people are looking for new properties and are sometimes disappointed by the quality of second-hand properties in relation to the prices charged. In this case, they prefer to continue renting. If purchase prices are considered too high, this can shift demand towards renting, with a potential impact on rents.
We observe that Monaco is primarily an asset market, rarely a yield market. Rents are high, but rates of return remain low given the purchase prices. For some high net worth individuals, it is easier to invest £30 or £40 million in an apartment in Monaco than in an equivalent asset elsewhere. The principality enjoys remarkable stability and a level of security that is rarely matched. Barring exceptional events, buyers believe that value will be preserved over the long term.
International geopolitical and fiscal stability plays a major role. Changes in tax regimes in other countries have already led to new arrivals in Monaco.
At the local level, the lack of available land limits supply, which structurally supports prices, despite major urban engineering projects. Other factors may also have an impact: changes in urban planning regulations, minimum surface area requirements, environmental standards. But in Monaco, buyers generally have the means to cope with these constraints.
The report is quite clear: given the extreme land constraints, projects currently underway or recently completed – Mareterra, Bay House, L’Exotique – represent only a very limited supply of new properties. In the short to medium term, other major developments seem unlikely. In this context, even if transaction volumes may stabilise, the fundamentals remain extremely solid. The perception of Monaco as a safe haven, combined with a structurally scarce supply, should continue to support values in the long term, more in a logic of gradual growth than speculative surge.
