Luxury residential real estate values in Monaco reached €53,000 (US$61,832) per square meter in the second quarter of 2017, according to a new report by Knight Frank.
The tiny, independent region on the French Riviera has led Knight Frank’s annual global comparison of residential values since 2008, the report said, and was followed by Hong Kong, New York and London.
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"Monaco remains at the top of global wish lists," said Kate Everett-Allen, head of international residential research at Knight Frank, "with no other city in the world boasting the same wealth density."
Prices are being supported by a lack of new development. Not one residential unit was completed in the Principality in 2016, according to the report released Monday, likely to put further pressure on prices in the short to medium term. While there is residential development underway, it's a way from completion, the report said, and 75% of properties under construction are either social housing or high-end built-to-let apartments.
With its only opportunity for expansion to extend into the sea, Monaco’s latest €2 billion land reclamation program will see six hectares of new land created from Sicilian sand, according to the report.
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On it will sit 120 new high-end apartments, whose prices will be in excess of €100,000 (US$116,659) per square meter, prices that ultra prime stock in Monaco are already achieving, especially in places like the affluent Carré d'Or area. Of those 120 units being built, 50 have already been retained by the developer, leaving just 70 to be sold, the report said.
Knight Frank estimates that by 2026 Monaco will be home to 16,100 millionaires and 1,450 ultra high net worth individuals.