Monaco’s prime real estate market is reaching unprecedented levels, driven by a confluence of factors including the global visibility from the annual Formula 1 Grand Prix. With capital values climbing to a staggering €51,967 per square metre, the principality has solidified its position as Europe’s most expensive property market, setting new records in both pricing and international demand.
According to market analysts, the “F1 Effect” — the spike in global attention, tourism, and ultra-high-net-worth individual (UHNWI) activity around the Monaco Grand Prix — has played a pivotal role in intensifying demand for the city-state’s limited residential offerings. The 2025 Grand Prix once again brought an influx of affluent visitors, investors, and celebrities, many of whom seek permanent or seasonal homes in Monaco’s exclusive enclaves.
Beyond the glitz of race weekend, Monaco’s real estate fundamentals remain extremely attractive. The city-state is benefiting from landmark developments like Mareterra, a €2 billion eco-luxury extension project built on reclaimed land from the sea. Offering sustainable residences, marinas, and green public spaces, Mareterra is reshaping Monaco’s skyline and further reinforcing its reputation as a hub for innovation and luxury.
These projects are supported by tight planning regulations, high security, political stability, and zero income tax — all of which appeal to global elites seeking both capital preservation and an exclusive lifestyle. Analysts say that the combination of limited supply, high demand, and growing global interest is likely to keep prices elevated well into 2025 and beyond.
“Monaco continues to be the gold standard for European prime real estate. What we’re seeing post-F1 is not just seasonal demand — it’s a strategic repositioning of capital by international investors looking for security, prestige, and long-term value,” said a senior property analyst at Knight Frank.
Data also shows that Monaco’s resale values are up year-on-year, and off-plan properties — especially in high-profile developments — are being snapped up quickly. The continued interest from the Middle East, North America, and increasingly Asia points toward a more globally diversified buyer pool compared to previous years.
With real estate acting as a cornerstone of wealth strategy for UHNWIs, and developments like Mareterra promising innovation and ecological sustainability, Monaco remains one of the most desirable micro-markets in the world. The principality is not only weathering global economic volatility — it is thriving.
