At first glance, the new build market in Monaco is struggling to replicate the record-breaking success of 2022, but a healthy resale market and strong property prices are helping to counteract the seemingly dramatic 65% fall in new property transactions.
In the first nine months of 2023, three times less new build apartments were sold in Monaco compared to the previous year.
As reported by Monaco Life back in January, 2022 had been a stand-out year for new property in Monaco, with yields breaking through the €1 billion barrier for the first time in history. Of the 146 new apartments that reached the open market, 82 were confirmed as sold by the time IMSEE had wrapped up its real estate report for the year.
Volume and yield was huge: the number of sales quadrupled from 2021 and the average price of a new build in the Principality rose by 32% to €13.5 million. The high volume was largely explained by the completion of several major residential developments in Monaco, as well as the off-plan sales of others nearing their sign off dates.
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The final figures for 2023 are yet to be tallied up – there are still a few weeks to go before books close on the last 12 months – but it is unlikely that the industry is going to get anywhere near the 2022 numbers, in volume at least, before the year is out.
2023 SO FAR
In its Q3 economic report released on 14th December, IMSEE revealed that new build transactions were down 65% on the same time period during 2022, meaning that just 28 new apartments had been sold.
Nevertheless, the data provided by the statistics agency indicates that the amount of money raised with these decreased sales has “remained stable at an exceptional level of over €1 billion”. A quick calculation puts the average price of new build apartment sold at over €35 million.
The number of resales or existing property sales also reduced during the first nine months of 2023, albeit by just 10 addresses. Yield, however, is up by 4.8% to €1.8 billion, which is the highest recorded in Monaco for January-September since 2006.
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Read related article:
Monaco on track for strong economic year, says IMSEE’s Q3 report
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