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The trends of the real estate market of Monaco in 2025

18/12/2024

In 2025, the continued reflection of Monaco’s real estate market is unique in the world, with the evolutions that strengthen it and bring out its attraction and unique characteristics.The demand for good real estate in Monaco will further increase in 2025. This trend is explained by the limited offer of properties in the Principality, with a population in constant increase. The forecasts estimate an increase of 1,000 additional inhabitants in Monaco in 2040. Although modérée, this progression stimulates the demand in loges. Between 2016 and 2023, the population of La Principauté registered a population of 1,059 inhabitants, with 38,367 residents, full of continuous dynamism and great attraction.

By 2025, Monaco remains the world’s most sought-after villa in terms of price in the square meter, with a sum exceeding €50,000/m² for good standards, and atteignant sums for prestige residences. Toutefois, this valorisation remains stable thanks to the economic and political attractiveness of the Principauté, offering investors unequal financial security.

Plusieurs éléments pourraient influencer ce marché en 2025. Here is an analysis of the main facteurs à surveiller.

1. The global economic conjoncture

The world economy is an essential driver of real estate in Monaco. In 2025, a global economic recession or a risk of investment by the large central banks will reduce the leverage of foreign investors. Inversely, the election of Donald Trump as president of the United States in January 2025 will influence the world economy by redefining relations with advantages such as China or Russia. These strategies pour indirectly affect the future residents of Monaco, influencing their investment strategies and their ability to invest in the Principality.

2. International tax policies

Le marché immobilier monégasque beneficie historiquement de l’absence d’imôt sur le revenu pour les résidents. Furthermore, the tax reforms in the countries of origin of the investors, such as the establishment of taxes on the luxury goods in the foreigner, may influence their ability or willingness to invest in Monaco.

3. Les facteurs géopolitiques

The geopolitical crises, which are linked to conflicts, international sanctions or economic tensions, may enable investors to seek stable economies like Monaco. The Principauté pourrait ainsi voir une hausse de la demande en cas d’instabilité dans d’autres régions du monde.

4. Ecological transition and durable real estate

Attention to durable development materials influences more and more the choice of acheteurs. Monaco, with its ecological projects like Mareterra, is positioned as an innovative actor in real estate. Les résidents à haut pouvoir d’achat pourraient être attracted to des biens intégrant des technologies durables et éco-responsables.

5. The geographical position of Monaco :

Monaco benefits from a strategic geographic location in the heart of Europe, offering immediate proximity to major cities such as Nice, Milan and Geneva. Based on the main European capitals thanks to the international airport of Nice-Côte d’Azur and the transport infrastructures of the premier order, the Principauté sees an international clientèle seeking for luxury and practicality. Furthermore, they are involved in sustainable initiatives, which means that the Mareterra project constitutes an additional asset to attract sensible investors in the environment.

6. The role of the événementiel et du prestige international

Monaco remains an international showcase for emblematic events such as the Formula 1 Grand Prix or the Monaco Yacht Show. The Principal’s ability to maintain and strengthen these activities will continue to attract investors.

 

In 2025, Monaco’s real estate market will be influenced by a combination of economic, political and social factors. Given its unique status and its ability to adapt to the needs of the acheteurs, the Principauté must remain an attractive and resilient brand. Potential investors are invited to pay close attention to these evolutions to take advantage of the opportunities that this exceptional market offers.