In 2024, the Monegasque property market is evolving favourably, offering promising opportunities. This year's assessment marks a crucial turning point, with key players emerging with the ambition of helping customers realise their property projects exclusively in the Principality.
Entrusting the management of a property to an estate agency in Monaco ensures an exceptional experience, combining know-how and excellence in a demanding property market. These professionals, who specialise in the sale, rental and management of luxury properties, are essential allies for meticulous investors. As members of the Monegasque Real Estate Chamber, they guarantee recognised expertise and personalised support for every client.
At the start of 2022, interest rates were at 0%, but they gradually rose to reach 4.5% in September 2023. This increase, decided by the European Central Bank to counter the risk of inflation, could eventually freeze the Monegasque property market. It is important to note that this level of interest rate had not been reached since the early 2000s.
Considering that the ECB's key interest rate has probably reached its maximum level, a fall in 2024 is highly likely, helped by inflation returning to an acceptable level.
The Coldwell Banker price barometer is the key indicator of the upmarket property market in France, Monaco, Switzerland and Belgium. Updated quarterly, it provides detailed analyses.
In 2023, the barometer reveals regional differences in the resilience of luxury property prices. Although luxury goods are generally resilient, France stands out for its notable price increases, with average growth of 3%.
This underlines the appeal and strength of the prestige property market nationwide, particularly in the south, demonstrating its robustness compared to the standard market.
In 2024, the luxury property market should stabilise after the price rises of 2023. Despite these increases, demand remains lower than supply, a disparity that could be accentuated by a significant fall in new construction.
In the first quarter of 2024, a slight correction in prices was observed, of around 4% in the major cities according to the property barometer.
This is an exceptional opportunity for buyers, allowing them to invest and benefit from the downturn in the upmarket. This period offers a favourable framework for transactions, particularly for investors and informed buyers, thanks to the price correction.
In 2025, the property market could pick up again, supported by controlled inflation and a possible fall in interest rates. This positive situation could boost investor confidence, contributing to a favourable dynamic in the property sector as a whole.
With the number of ultra-rich predicted to grow by 28% between now and 2026, the luxury market looks promising.
The international premium clientele is ready to invest in secondary real estate, especially in attractive locations in France and Europe. For these demanding customers, buying a prestigious property with an exceptional view is becoming a particularly attractive reality.
Although the premium market is following the general trend in the property market, with slower growth and expectations of negotiations, it remains much more robust than the conventional property market.
This added strength reassures investors and underlines the resilience of the premium property market, making the acquisition of prestige properties an attractive option even in a changing economic climate.
In summary, the Monegasque property market in 2024 is evolving with the emergence of key players and growing expertise. Despite the rise in interest rates in 2023, the luxury sector is showing notable resilience, and the outlook suggests a stabilisation of the market, offering buyers an opportunity with a slight correction in prices in the first quarter.
