Prices in luxury markets across the continent, including here in Monaco, are expected to rise in 2025, driven by a combination of low inflation, low interest rates and the enduring appeal of Europe’s most dynamic and affluent cities.
According to Knight Frank’s European Prime Residential Forecast for 2025, all of the agency’s Top 10 tracked markets on the continent are expected to see price growth over the next 12 months.
“Low growth, low inflation and low interest rates define Europe’s outlook for 2025. While challenges remain, our 2025 Prime Residential Price Forecast reveals continued growth in key luxury residential markets,” notes Kate Everett-Allen, Head of European Residential Research at Knight Frank.
She continues, “Economic growth may not significantly drive wealth creation in the region, but tax and policy changes abroad are expected to attract global wealth to Europe. Recognised for its stability, transparency, excellent education and high quality of life, Europe remains a magnet for affluent investors.”
Leading the charge is Sweden’s capital, Stockholm, where prime property prices are anticipated to increase by 6%. Spain’s Marbella and Madrid complete the Top 3, with expected price growth of 5% each, ahead of the Portuguese capital of Lisbon, where Knight Frank predicts a rise of 4.5%.
Next is the Principality of Monaco, with Knight Frank forecasting price growth of 4% across the microstate in 2025.
A key contributor to this will likely be the final sales of properties within the €2 billion Mareterra development. Most units have already been snapped up – some reportedly commanding upwards of €100,000 per square metre – but a few still remain on the market. Supply and demand remain a tricky balance in Monaco, with demand consistently outstripping supply due to the nation’s limited land area.
Rounding out the hottest Top 10 prime markets in Europe for 2025 are Milan, Geneva, Paris, the Côte d’Azur and London, with expected price growth ranging from 3.5% to 2%.
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