Monaco real estate trends and price predictions for 2023

Economic and political volatility will be the defining backdrop of 2022, with global inflation, rising interest rates, a falling Euro, and the Ukraine/Russian war.

Despite these market shocks, prime real estate in Monaco continues to remain robust, with rising demand often outstripping supply. However, like other super-prime real estate markets, economists and leading estate agencies predict a cooling in Monaco’s real estate prices in 2023. Read on to learn more about Monaco’s 2023 luxury real estate market. 

2023 Monaco real estate trends 

A darkening global economic outlook 

Even the super-prime market isn’t immune to the impact of the rising cost of borrowing, inflation, and economic turmoil. The fall in global stock markets – where significant amounts of UHNW wealth is invested – coupled with the world being on a brink of a global recession is likely to lead to more caution amongst the world’s richest individuals when considering the acquisition of super prime real estate, especially those that are employed by or own leading international companies. 

In volatile economic times, there is often a desire to maintain more liquid assets, providing enhanced financial flexibility. However, the opportunity to own the most sought-after super-prime real estate is rarely passed up by the world’s richest. 

Historically, prime real estate is seen as a safe hedge against inflation and a darkening economic outlook. So, while the market might see a slight cooling off, it’s unlikely to dip significantly. Indeed, those that invest during a cooling market often reap the rewards when global economies return to good health. 

The rise and fall in UHNWIs in a post Covid era 

While the Covid pandemic hit economies hard, many of the world’s wealthiest grew even richer – fuelling demand in super-prime property markets like Monaco and driving prices higher. Indeed, according to the 2021 Real Estate Observatory Report, Monaco real estate prices reached a record high, breaking the historic 50,000 Euro average price per square metre for the first time ever, an increase of almost 75% over the past decade. 

However, for the first time in four years, there has been a drop in the global number of UHNWIs, down 6 percent to 392,410, according to a new report by Altrata. Real estate experts predict that this will have an impact on 2023 Monaco real estate trends. The report also highlights that the combined net worth of the world’s richest individuals dropped by 11 percent to US$ 41 trillion. This slight drop, compounded by global economic volatility, is likely to contribute to a slight levelling off of real estate prices in 2023, Monaco’s leading real estate brokers predict. 

The Ukraine/Russia war 

The Ukraine/Russian war has impacted economies worldwide, causing global financial market jitters and fuelling inflation and rising interest rates. With strict financial sanctions on Russian individuals, some have been removed from the Monaco real estate market, leading to a very slightly reduced pool of buyers. Indeed, bound by international treaties, several Russians have had their assets frozen in the principality. However, this is likely to have a very limited impact on 2023 predicted Monaco real estate trends as Russian buyers have made up only a very small pool of buyers over the past few years. 

Monaco real estate trends; new developments in 2022 & 2023 

2022 saw an exciting flurry of luxury Monaco real estate for sale come to market and this Monaco real estate trend is set to continue in 2023. These new developments are a positive sign of a robust real estate market and surging demand. 

For example, the hotly anticipated Bay House will offer a stunning selection of super-prime apartments, penthouses, and ultra-rare villas, each with its own private outdoor spaces and swimming pool in the exclusive district of Larvotto, just moments from the newly redeveloped Larvotto Beach and the refined amenities of Monte-Carlo. The luxury residence will boast a range of amenities, including a full-service spa, dedicated fitness area, concierge services, and 24/7 security. Delivery is scheduled for early 2024. 

The green oasis that is L’Exotique was completed this year, providing stunning properties that epitomoise luxury living. This stunning residence in the district of Jardin Exotique has been designed by leading architect Rudy Ricciotti and aims to maximise outdoor living, with each residence boasting oversized terraces and spectacular sea views. Other features include a swimming pool, hammam, sauna, stunning lush foliage, and secure underground parking. 

Finally, another luxury development is 45G, a 15-floor residential building conveniently located in the heart of La Condamine. The residence will boast 72 apartments and two stunning penthouses, each with its own rooftop swimming pool. Many of the apartments will benefit from wonderful views of the Mediterranean Sea and the Principality of Monaco. 

While Monaco real estate trends indicate a slight cooling off, there is no doubt that the principality remains a safe investment in a volatile world. Super-prime markets, such as Monaco, offer the world’s richest quality of life and safety for their finances and families.