Few European locations command Monaco’s prestige and power regarding its luxury real estate landscape. While cities like London, Paris, and Zurich continue to attract global wealth, Monaco consistently outperforms them in exclusivity, security, and long-term property value. With its Mediterranean charm, zero income tax policy, and exceptional lifestyle, Monaco has become the ultimate destination for high-net-worth and ultra-high-net-worth individuals seeking not just a residence but a refined and resilient investment.
For more than 40 years, La Costa Properties Monaco, a leading real estate agency in Monaco, has been at the forefront of Monaco’s growing real estate market, helping wealthy individuals globally invest in what is now Europe’s most prestigious luxury real estate market. Read on to discover property insights from real estate brokers in Monaco and how you can make a luxury real estate investment in the Principality.
Luxury property in Europe: real estate trends
According to the 2025 World’s Wealthiest Cities Report by Henley & Partners, Monaco remains the world’s most expensive city for prime real estate, with an average price of US$ 38,000 per square metre. However, other reports put the average cost per square metre even higher. According to the Monegasque Real Estate Observatory Report, the average price per square metre in Monaco in 2024 was 52,000 euros, representing a new historic high.
Other prime real estate hotspots identified by the Henley & Partners report in Europe included London, with an average price of $24,000 per square metre, Saint-Jean-Cap-Ferrat, at $21,200, Paris, at $20,400 per square metre, Geneva at $15,200 per square metre, Nice and Portofino, both at $15,000 per square metre, Cannes, at $14,800, Lugano, at $14,600, Antibes, at $14,500, Porto Cervo at $14,500, and Eze at $14,400. The dominance of destinations along France’s Côte d’Azur, close to the Principality of Monaco, further underscores the demand for luxury real estate in this region.
Why Monaco reigns supreme in Europe for luxury real estate
There are multiple reasons why Monaco real estate is the jewel in Europe’s crown.
The rarity of land
One of Monaco’s most compelling investment qualities is its sheer scarcity. Encompassing just over two square kilometres, the Principality is the second-smallest country in the world (second only to the Vatican), yet it houses one of the most sought-after property markets globally. Development is tightly controlled, with new projects such as Testimonio II and Mareterra pushing architectural and environmental boundaries.
This finite land availability fuels ongoing demand, making Monaco one of the rare locations where the price per square metre consistently increases. Indeed, according to the Real Estate Observatory Report, average resale prices in the Principality have risen around 67% over the past decade. For investors, this means exceptional capital preservation and long-term appreciation potential.
World-class lifestyle and amenities
Monaco offers an elevated way of life that rivals any global city. The city-state’s luxury offerings are unmatched, with a ready supply of service providers catering to the world’s wealthiest individuals. Monte-Carlo sits at the heart of the Principality, home to designer boutiques, Michelin-starred restaurants, and ultra-lavish hotels.
Residents enjoy year-round sunshine, a pristine Mediterranean coastline, and personal privacy rarely found elsewhere. Add access to private clubs, superyacht marinas, and heliports, and it becomes clear why Monaco is a lifestyle as much as a location.
Fiscal advantages
Monaco’s fiscal policies are among the best in Europe and one of the Principality’s strongest draws. Residents do not pay personal income, capital gains or wealth taxes, making the city-state an ideal jurisdiction for preserving and growing wealth. Furthermore, inheritance laws are favourable, and corporate tax policies can benefit qualifying businesses.
Additionally, Monaco’s robust legal framework and banking system offer a secure and efficient environment for global financial planning and doing business. This combination of privacy, security, and legal certainty is rare, even among other top-tier European destinations.
High demand, low supply
Luxury property in Monaco benefits from a uniquely strong supply-demand dynamic. With a limited number of available units at any given time and international interest continuing to rise, properties are often acquired off-market or within days of listing. Demand comes from all corners of the world, with individuals drawn not just by lifestyle but by the Principality’s political stability and investment security. According to the latest Wealth-X World Ultra Wealth Report, the global population grew 7.6% in 2023 to a high of 426,330 individuals, with this trend expected to continue, putting ever-increasing pressure on Monaco’s real estate market and further driving prices up.
Architectural prestige and modern developments
Monaco’s skyline is a compelling blend of classic elegance and cutting-edge design. Historic buildings with Belle Époque facades sit comfortably alongside modern masterpieces like Tour Odéon, a 170-metre residential tower with sky-high penthouses and private spas. The newest major project, Mareterra, is a billion-euro eco-development extending Monaco’s coastline with ultra-luxurious villas and apartments, all built to the highest sustainability standards.
Luxury real estate in Europe vs Monaco
Monaco vs London
Although London has dropped out of the top five richest countries globally, it remains one of the world’s traditional wealth hubs. The Henley & Partners Wealth Report puts London as the sixth wealthiest city in the world, with an estimated 215,700 millionaires, 352 centi-millionaires, and 33 billionaires.
As a global financial hub, London offers a broad and diverse luxury property market. Prime Central London areas like Mayfair, Knightsbridge, and Belgravia boast super-prime real estate investment opportunities. While London’s property market is more accessible than Monaco’s, it has experienced greater volatility post-Brexit and during global market shifts.
Just like Monaco, the UK allows full foreign ownership and is known for its transparent legal framework. However, new tax regulations and foreign buyer surcharges have slightly increased costs recently, especially for offshore or corporate buyers.
Furthermore, when considering Monaco vs London, it’s worth noting that UK residents are subject to income, capital gains, and inheritance tax. Non-residents face additional stamp duty surcharges and tax changes affecting non-domiciled individuals.
Monaco vs Paris
As one of Europe’s most iconic cities, Paris offers a rich blend of heritage and modern luxury and is a key destination for ultra-wealthy individuals, placing 7th in Henley & Partners’ top 50 wealthiest cities report with an estimated 160,100 millionaires, 277 centi-millionaires, and 22 billionaires. Prime areas such as the 6th, 7th, 8th, and 16th arrondissements command high prices. Though more accessible than Monaco, Paris is still one of Europe’s most expensive real estate markets.
Like Monaco, France allows full property ownership by foreigners. However, the legal and bureaucratic process can be more complex, and taxes and administrative procedures are higher and require expert local guidance.
Additionally, France has a progressive income tax system, capital gains tax on property, and wealth tax on real estate assets exceeding €1.3 million. Inheritance and gift taxes are also significant, particularly for non-residents.
Monaco vs Zurich & Geneva
While the Swiss cities of Zurich and Geneva are wealth hotspots, with both cities boasting a millionaire population of more than 70,000 individuals, both cities offer more subdued prices compared to Monaco’s ultra-exclusive property market.
Furthermore, Switzerland enforces restrictions on foreign property buyers (Lex Koller law), particularly for non-residents. This means foreigners may find investing in primary residential property without a residence permit harder than in Monaco.
Additionally, while Switzerland does offer some tax advantages, residents are still subject to income and wealth taxes. Property owners pay an annual property tax and may be liable for capital gains tax upon sale.
How can I invest in luxury real estate in Monaco?
The best way to make a luxury real estate investment in Monaco is to contact a reputable Monaco real estate agency. The best will be members of the prestigious La Chambre Immobiliere and boast in-depth market intelligence and industry expertise. Start your luxury Monaco property investment journey today and contact your chosen real estate agent in Europe’s most exclusive property market.
