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Glitz and glamour of Monaco’s luxury property outshines dizzying prices in Hong Kong and New York markets

  • Tiny principality is world’s most expensive market for luxury property, where tennis star Djokovic and F1 champion Hamilton call home
  • Demand is boosted by celebrities and ultra-wealthy, drawn by the country’s favourable tax policies

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A view of Monaco Principality during the Monaco Yacht Show, one of the most prestigious pleasure boat events in the world. Photo: Reuters
Cheryl Arcibal
A combination of its small size and a friendly tax regime that attracts the world’s wealthiest individuals to its shores has made the principality of Monaco the world’s most expensive luxury property market, topping the likes of Hong Kong, New York, London and Paris, according to Savills.
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A home in the tiny kingdom on the Mediterranean Sea cost an average 48,150 euros (US$54,010) per square metre as of the end of 2019, or 7.7 per cent higher than in Hong Kong and almost double the level in New York, it said. For another yardstick, US$1 million could buy 16 square metres (172 sq ft) of prime property in Monaco, versus 21 sq m in Hong Kong, another property consultancy Knight Frank reported in March.

Save for Vatican City, Monaco’s 2.1 square kilometres make it the world’s smallest state, severely constraining the property supply. Its size is even smaller than the 3.41 square kilometres of Central Park in New York. Its zero-tax policy on personal income, investments and capital gains are irresistible magnet for celebrities and the ultra-wealthy.

“We expect Monaco’s real estate to continue to perform well,” said Edward de Mallet Morgan, a partner at Knight Frank. “Generally, if there are global slowdowns in the market, there is some flight to perceived safe havens. Monaco, as the most expensive real estate market in the world, seems to hold up well during tough economic times.”

Bordered by France and Italy, and famous for being the adopted home of famed Hollywood actress Grace Kelly after marrying Prince Rainier III in 1956, the small European monarchy is currently home to the likes of tennis stars Novak Djokovic and Caroline Wozniacki, and F1 champions Lewis Hamilton and Nico Rosberg.

As of 2018, per capita income of a Monegasque, or an inhabitant of Monaco, was US$186,000 – among the highest in the world. The principality’s temperate climate, with 300 sunny days a year, is another drawcard. The country also hosts glitzy events such as the Monaco Yacht Show and Formula One’s Monaco Grand Prix.

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Monaco’s economy is largely supported by service industries, including finance, insurance and tourism.

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