Monaco home to world's most expensive prime property

Photo: Teillas

The country, which the advisers argue is closer to a world city in many ways, has a limited supply of housing, which has pushed up real estate values to €91,000 per square metre, higher than Hong Kong and the most expensive in the world.

Indeed, Monaco is ranked number one in the Savills World Ultra Prime Index, despite the fact that it takes up an area of just 6 per cent the size of Manhattan and 3 per cent the size of Hong Kong Island.

The number of residential resales fell by 55 per cent between 2007 and 2010, but the market remains stable. That resilience is attributed to the diversity of buyers it attracts. Indeed, Monaco is home to residents from 128 different countries, from the Brits to the Belgians, Swiss, Ialians and Russians.

That demand from wealthy buyers pushed up transaction voumes to within 13 per cent of their peak in 2013. Now, sales in terms of total monetary volume are 23 per cent higher than in 2007.

The Principality is now building skywards and into the water on reclaimed land in an attempt to keep prime investors' attention; a strategy that Savills forecasts will only see prices rise higher.

Paul Tostevin, associate director, Savills World Research, concludes: “Prices are still up to 20% below their former peak however we foresee they will return to peak within the next 12 months with anticipated growth of around 20% before mid- 2015.”