Monaco remains the most expensive place on earth to buy property despite the Covid crisis, with an average price of €47,600 per square metre in 2020.
In the latest annual report by Savills, the number two position goes to Hong Kong, where a square metre costs €39,600.
Not to be left out, New York rounds out the top three with an average per metre price of €22,200, showing the Big Apple is still a desirable place to be.
These figures for 2020, as eye-watering as they may be, represent a drop from the previous year. Monaco saw a small 1.1% decline in value compared to 2019, whilst Hong Kong took a slightly bigger hit, falling by 3.9%.
These same three cities also have the highest rental prices per square metre. Monaco is top of the heap with the average cost hovering at €89 per square metre. New York surpasses Hong Kong on this front though, with every square metre there costing renters €66 compared to €60.
In a year that was marked by Covid, it is not surprising to see that transaction numbers in Monaco declined by 11% in 2020 compared to the previous year. The number of properties sold with four or more bedrooms plummeted by 38%, while villa transactions fell by 5%. This is attributed to the impact of travel restrictions which left overseas buyers largely out of the equation.
The most active price point in Monaco was in properties under €5 million, accounting for 71% of all sales. In this area, transactions were down by only 6%. On the other end of the spectrum, those priced at over €10 million were down by a significant 39%.
That being said, buyers at the higher price points weren’t finding any fire sales. Prices remained stable , showing a willingness to buy in Monaco in 2020 at pre-pandemic prices. In fact, the decline in transactions at 1.1% appears to be a minor blip due to circumstances and the forecast is that the upward trajectory will continue.
Meanwhile, rental prices, whilst the highest in the world, dropped in 2020 by 23%. This is thought to be due to a fall in demand brought on by the health crisis. Less new residents, who often rent before buying, meant less renters in general, thus reducing demand. This trend is expected to reverse once travel restrictions are lifted.
Savills predicts a general surge in demand in the Principality when the worst of the pandemic effects are over in the coming year.
Photo of Monaco by Cassandra Tanti for Monaco Life