Slight drop in luxury real estate prices in Monaco
The Principality has many prestigious and pricey projects, such as the Tour Odéon - © Tour Odéon
So says the latest Prime Global Cities Index.
While prices are trending upwards in the real estate market in general, it would appear that those of luxury properties in the Principality are falling slightly.
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In its latest report, Knight Frank analysed 46 different cities, including the Principality of Monaco, and studied the evolution of real estate prices for luxury properties over the third quarter of 2023.
While the trend is upwards in 31 cities, with Manila, Dubai and Shanghai leading the pack*, Monaco is ranked 32nd and is the first to register falling prices. The (very slight) decrease is 0.8% over the last 12 months and 0.4% in the last semester. Singapore, Geneva, London, Hong Kong and Los Angeles are following the same downward trend.
“With inflation edging lower, and interest rates largely held by central banks, market demand for residential property has improved in several markets,” says the report. “That said, this revival in demand is fragile and could be pushed off course if inflation surprises on the upside. A more sustained upswing in demand and pricing will only be achieved once rates begin to move lower – which is unlikely to take place before mid-2024.”
*With an increase of 21.2%, 15.9% and 10.4% respectively over one year