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2019 real estate market results in Monaco

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IMSEE has recently released analysis and data on real estate in Monaco basing on 2019 data. The aggregate value of all property transactions (primary sector sale and resale) rose by nearly 4.5% to almost three billion euros (€2.8 bil) while average price per sq.m. remained approximately at the same level of €48.000,- per sq.m. (it fell slightly from €48.800,- to €48.150,- per m2). The report mentioned that only two new buildings were delivered in 2019. Namely, 26 Carre d'Or and One Monte Carlo, both next one to another in Monte-Carlo, so we can't say that the offer of new apartments was enough to satisfy market demand. It should be noted that fewer newly constructed apartments were sold in 2019 vs 2018 (33 vs.72 units). And among them the most popular were new studio-apartments (14) and one-bedroom units (8). Total value of new apartments sold also fell from €371,- mio to €320,- mio. Median price of new apartments rose by approx. 9% to €3,4 mio while mean price almost doubled showing suprlus +89% due to the sales of some very expensive apartment in primary sector with 5+ bedrooms. General conclusion for primary sales is that fewer apartment in Monaco get sold but those sold are of higher price tag. In 2019 more than 1/4th of all primary market transactions exceeded €10,- mio.

Resale market of Monaco is more dynamic and much more interesting to analyze. Physical number of resales in 2019 decreased as well having dropped from 451 unit to 429. However, the value of resale apartments increased from €2,327 mio in 2018 to €2.475 mio in 2019. It is a remarkable rise by 6,4%. Mean price of resale properties rose in 2019 by 11,8%, whereas median resale prices showed 8,6% growth. Analysis of apartments by type (room count) shows that number of villas sold increased from 6 to 15, given a great shortage of this product on real estate market of Monaco. Number of four-rooms apartment (with three bedrooms actually) rose from 41 to 51 while amount of 2-bedroom apartments sold fell from 135 to 97. Along with decrease in 5+ rooms apartments from 43 to 39 units (here the buyers have obviously chosen independent villas rather than large apartments). Much more properties in Monaco now belong to upper tier with the budget over €10,- mio (60 resale transactions in 2019 vs. 36 in 2018). At the same time the sales share of cheap flats under €5,- mio is shrinking.

When we come to aggregate amounts of both primary sales and resales in Monaco, 2019 demonstrated rise in value in 3,6% vs 2018 while the number of sales fell. Average aggregate mean price rose in 2019 by 9,7% and average aggregate medium price increased by 5,8%. This is a clear answer to the question of investors - whether the prices in Monaco are rising every year to be an alternative to deposits or other ways to invest. The prices do rise, investment for mere resale is highly profitable.