Small wonder: Why Property in Monaco Reigns Supreme

Monaco is unique in many ways – not least because of its diminutive scale and exceptional wealth. So it’s no surprise that its real estate commands a premium unlike any other. As the dazzling apartments and villas at Mareterra have come to the market (off-plan) over the past few years, they have helped to establish Monégasque property prices as the highest per square metre in the world, at just over €51,000 (about £43,000). 

Monaco is also the most expensive place to rent a property, according to the Savills Prime Residential Index: World Cities – 52% higher than Hong Kong and 23.2% higher than Geneva. And this trend shows no sign of slowing down: prime rental prices rose by 6% in 2024, outperforming a global increase of 4.4%.

Irene Luke, a Scot who has lived in Monte Carlo for 30 years, and is co-head of Savills Monaco, remembers when the Principality – a 0.8-square-mile sliver of land bordered by hills to the north and the Mediterranean to the south – was favoured by an older, retired crowd. “Now it’s mature business people aged between 40 and 60,” she says. “It’s the perfect place for a foothold in Europe, with its benign tax system and travel connections through Nice airport, just a 30-minute drive away. It really does attract great entrepreneurs.” 

Alongside these go-getters are international footballers, tennis players and, of course, racing drivers. Not even in the slickest parts of Los Angeles do you see cars of the calibre and rarity that roar down the curving roads of Monte Carlo.

Mareterra is new land magicked out of the sea. The 10-year, €2 billion project has added six hectares to the Principality. On this, the Italian starchitect Renzo Piano has created a glimmering apartment building set on stilts, like a ship in dry dock. Other prestigious architects, including Lord Norman Foster and Tadao Ando, have designed 10 bespoke – and completely hidden – villas on 0.2-hectare plots.

“Mareterra is our first national eco-district,” says Albert II, reigning monarch since 2005. “It is a project that reflects Monaco’s enduring promise to safeguard the Mediterranean’s unique beauty and biodiversity.” A park has been planted with 1,000 trees, a public promenade runs along the sea, 9,000 solar panels provide power, and apartments are cooled with seawater.

While Mareterra is now the most sought-after locale in the Principality, it has also kickstarted a trend of improvement in existing properties. “It’s a ripple effect,” says Luke. “Mareterra has raised buyers’ expectations. Common parts in older buildings are being revamped and façades redone. Extra floors are being added to provide big penthouses. That’s a strong trend.”

Many begin their life in Monaco by renting, partly to check out if the Principality is for them before investing, but also because there is a lack of property for sale. “I would say 60%-70% of people here are renting before they buy,” says Luke. “It’s an international crowd, and we’ve noticed a number of people wanting to relocate from Dubai.

“They moved there during Covid, but are now looking elsewhere.” The Belgians, UK non-doms and Scandinavians are also coming. Buying can be a long, slow burn, but for rentals speed is all. “Things get snapped up instantly,” says Luke.

For an entry-level apartment to buy, look at the Jardin Exotique area, built around the luscious public garden created in 1933. Prices there start at €50,000 a square metre. Luke’s favourite part of town is La Condamine, where prices hover around €54,000 a square metre. “It has picturesque streets from the 19th century, and an open-air market with fruit, vegetable and flower stalls, outdoor cafés and cute buildings,” she says. “But apartments in this area can be small.” For families, the preferred area is Fontvielle, a 23-hectare district built into the sea in the 1970s, where homes are larger and sell for a similar price per square metre.

With more families choosing to live in Monaco, and their children attending the excellent British School or International School, the Principality is certainly changing. “It used to feel quite empty out of the summer season, which runs from April to September,” says Luke. Now it’s thriving all year round.

Read the Spotlight: Monaco – 2025 report in full