The micro‑state of Monaco has once again claimed the title of the most expensive place in the world to buy residential real estate, with the average cost now exceeding €62,000 per square metre, according to data from Global Property Guide. This level is nearly three times Hong Kong’s average of €20,400 per square metre and almost six times that of Paris, at approximately €10,500.

Monaco’s exceptional pricing is primarily driven by its extreme scarcity of land. With a total area of just around 2.1 km², the Principality cannot expand outward and relies on high‑rise development and land reclamation to add stock. Iconic projects such as Bay House in the upscale Larvotto district — part of the Testimonio II scheme — and the ambitious €2 billion sea‑extension Mareterra, have added ultra‑prime residences, further boosting values.

A market shaped by stability, luxury and long‑term residence

Beyond the limited supply, Monaco’s property market is sustained by strong structural factors: political and economic stability, favourable tax arrangements -notably no personal income tax for most residents – and its reputation as a secure, long‑term home rather than a speculative playground.

Steady upward trend over the past decade

In 2013 the average price per square metre in Monaco was around €35,000; by 2020 it had reached approximately €48,000. The current figure of over €62,000 reflects a sustained upward trend, underpinned by enduring demand and the unique urban‑economic model of the Principality. Analysts see little reason for its top‑ranked status to be challenged in the near future.

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Photo credit: Richard McCreery, Monaco Life