Monaco is one of the world’s most exclusive destinations and for international property buyers, it offers the ultimate real estate investment opportunity. Indeed, to own property in Monaco is to join an elite club of some of the world’s wealthiest individuals who can afford to own a home in the most expensive and sought-after real estate market.

Over the past decade, Monaco has witnessed incredible growth in its real estate market thanks to its enduring allure as a premier destination for super-prime real estate investments. Leading real estate advisors in Monaco predict this upward trajectory will continue, especially with international property buyers looking for real estate investments in a political and economically stable environment.

If you’re searching for Monaco property for sale and considering making a real estate investment in the Principality, then read on. Here, we explore what Monaco international property buyers need to know about the Principality’s fast-moving real estate market.

Monaco’s unique real estate market

According to the 2024 Real Estate Observatory Report, the average price per square metre for property in Monaco in 2023 was 51,418 Euros, with the average property transaction standing at 5.7 million Euros and more than half of all transactions being at or above 3.5 million Euros.

Monaco real estate prices are driven by increasing demand and limited land due to the Principality’s small size; it’s the smallest country in the world, second only to the Vatican.

In Monaco, there are only two ways to build: either up or by reclaiming land from the sea. In recent years, the Principality has seen ever increasingly higher new buildings being constructed, such as Tour Odeon, Monaco’s highest twin-tower skyscraper. A highly ambitious land reclamation project is also underway to create an entirely new district, Mareterra, that, once complete, will offer a selection of prime apartments, townhouses, and ultra-rare waterfront villas.

Monaco’s most sought-after districts

The Principality of Monaco is divided into seven districts: Jardin Exotique, Fontvieille, La Condamine, Monaco-Ville, Monte-Carlo, Larvotto, and La Rousse Saint-Roman.

According to the 2024 Real Estate Observatory Report, the districts of Monte-Carlo and La Rousse accounted for almost 60% of the value of resales in Monaco. This was followed by La Condamine, Fontvieille, Les Moneghetti (formerly part of La Condamine), Larvotto, Jardin Exotique, and Monaco-Ville.

According to the report, La Condamine saw the biggest increase in prices, exceeding the symbolic 50,000 Euros per square metre mark for the first time, while Larvotto remains the highest-priced district, with the average price per square metre standing at 65,857 Euros.

International property buyers Monaco: Property acquisition steps

There are no restrictions on property ownership in Monaco, meaning anyone can make a Monaco real estate investment.

The property acquisition process in Monaco typically includes the following steps:

1. Instruct an agent who will help you with your property search and set up viewings. The buyer will typically have to pay an agent’s commission of around 3%.
2. Once the desired property is found, the agent will put forward a formal written offer. The offer is binding once both parties formally accept it.
3. The buyer must then appoint a Monegasque lawyer or notary public who will act on their behalf throughout the property acquisition. 
4. A formal contract is then drawn up by a Monegasque lawyer or notary public
5. Next, a deposit, typically 10% of the purchase price, must be paid. The deposit is usually held by the notary public or lawyer until completion.  
6. The notary public or lawyer will then draw up the title deed and carry out due diligence on the land title and any other relevant searches, including checking with the Monaco Land Registry.
7. Completion, including the execution of the transfer deed and the final purchase amount being paid. The notary or lawyer will then register the sale with the Monaco Land Registry.

Benefits of a Monaco real estate investment

The benefits of a Monaco real estate investment are numerous. Not only will investors benefit from incredible returns and a route to Monaco residency and eventually citizenship, but a real estate investment in the Principality also opens the door to multiple financial advantages, not to mention the opportunity to enjoy its luxury lifestyle.

Monaco’s average price per square metre has risen by an incredible 38.1% in the past decade, providing a superb return on investment for international property buyers in Monaco, and leading real estate agents predict this trend will continue.

Those who choose to reside in Monaco will also benefit from a mild tax regime, including no income tax, wealth tax or capital gains tax, and a robust financial ecosystem.

Furthermore, Monaco is a safe haven in which to invest in an increasingly volatile world. According to the World Risk Index, which analyses risk based on natural hazards, political and economic security, and environmental factors, Monaco is the safest country in the world.

It’s no surprise then to learn that around 80% of the principality’s 38,000-strong population are expats, with native Monegasques making up just 20% of the population.

Working with an experienced real estate agent

As the real estate market is incredibly fast-moving, international property buyers in Monaco should work with an experienced and trusted Monaco real estate agency. The best agencies will boast a superb selection of luxury apartments for sale, including off-market properties and will help international buyers navigate the acquisition process.

If you are an international property buyer looking to invest in Monaco, contact a reputable Monaco real estate agency.