Monaco has long been synonymous with luxury, and its real estate market continues to live up to that reputation. It's consistently been the most expensive place on the planet to buy prime residential property. According to Knight Frank, a $1 million will get you just 205 square feet of space in this glittering microstate on the French Riviera.
At just 510 acres, Monaco is the second-smallest country in the world, behind only Vatican City. In fact, it's smaller than New York's Central Park, which covers 843 acres. However, Monaco more than makes up for its exclusivity and lack of space. With the world's highest population density, 18,681 people per square kilometre, land is a precious resource. When space runs out, Monaco has a unique solution, land reclamation from the sea.
The €2 billion ($2.1 billion) Mareterra land reclamation project, which added 15 acres to Monaco's coastline, is one example of how the tiny principality is expanding its territory to meet the growing demand for high-end real estate. This development sets new records, designed by architectural heavyweights Renzo Piano and Sir Norman Foster. Some luxury homes in Mareterra are fetching over €100,000 (about $108,000) per square meter, more than double the average price of resales in the region.
Monaco's appeal goes beyond its prime real estate. The principality's no-tax status, no income, capital gains, or wealth taxes makes it a magnet for the world's wealthiest individuals. Throw in its perfect Mediterranean climate, world-class healthcare, political stability, and high levels of privacy and security, and it's no wonder Monaco remains a top destination for UHNWIs.
However, all this exclusivity doesn't come cheap. In 2024, newly built properties in Monaco soared to an average price of €36.4 million ($39.6 million), six times the price of a resale property. But even at these sky-high prices, demand remains strong. Homes in Monaco routinely exceed €40 million ($43.5 million), and even a parking spot can cost an eye-watering €395,000 ($430,000).
Monaco has also retained its title as the world's most expensive luxury rental market. A modest two-bedroom apartment in Monaco can set you back around $30,000 a month, with a 1,100-square-foot property starting at about $19,350 monthly.
Monaco's property prices are setting yearly records, and the market continues to heat up. In 2024, properties over €10 million ($10.8 million) increased by 10.6 per cent, and more than half of the newly built units sold for over €20 million ($22 million). Seven residences topped the eye-watering $100 million mark. Monaco's real estate market will only continue to grow more exclusive, expensive, and desirable for those seeking luxury living.
