After several years of limited supply, Monaco’s new-build offer is expanding and with it, the gulf between resale and new home prices. For a principality no larger than two square kilometres – smaller than Hyde Park and Kensington Gardens combined – Monaco, home to 12,200 millionaires punches well above its weight.
The population of wealthy people (those with net assets of US$30m+) has increased by 62% in the last decade. Average property prices in Monaco have increased by 27.8% in the last five years according to the Monaco Statistics Office, but what stands out is the widening gulf between the price of new and resale properties.
Data from 2015 shows the average price of a resale property stood at €3.5m whilst the average price of the 38 new-build apartments sold in 2015 was closer to €11.9m. Monaco’s constrained supply pipeline improved in 2015 when 195 new apartments housed within three new prime developments came to the market.
Monaco’s buyer profile is shifting. Not only is the age of buyers lower than it was a decade ago but the nationality of buyers can increasingly be defined according to their purchasing power.
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