Has COVID-19 Impacted Luxury Home Selling in Monaco?

The pandemic has crippled many businesses and industries, but how does the Monaco luxury home market look these days?

As in the rest of the world, the COVID-19 crisis has caused major disruptions, delays, and even closures in businesses and industries in the principality. The tourism and hospitality industries, in particular, have been significantly impacted.

But the city-state has been handling the crisis competently—providing adequate access to hospital beds and medical staff, keeping infections rates stable, having sufficient and quick access to vaccines for all residents and employees, and, amazingly, keeping its society functionally operating.

As for Monaco’s real estate market, it is still holding strong, with interest from both local and international buyers remaining robust. Homeowners who are looking to sell their property can take advantage of the situation and come out on top.

Why Monaco remains a hot market

• Prices are holding relatively steady

According to a report by Savills, the current average price per square meter of more than €47,000 still makes Monaco the priciest location for residential property worldwide, even if this figure represents a 1.1% drop from its 2019 price.

• Demand for Monaco real estate continues to be high

Monaco has seen a consistent flow of property transactions even during the pandemic. While mostly from local clients, foreign buyers have also been part of the mix.

Overall, transactions in 2020 were down 11% compared to 2019. Large apartments and villas, as well as properties priced at more than €10 million have taken the biggest hit, with sales down by a range of 38% to 53%.

However, transactions for under-€5 million properties were down by only 6%, and constituted 71% of the total sales in Monaco. Of these, the Monte Carlo area saw the highest volume of transactions, making up 34% of all 2020 sales.

While the global travel restrictions shuttered its tourism and hospitality industries, Monaco continues to see a steady stream of renters and buyers, opening up plenty of opportunities for sellers.

• Monaco remains an ideal place to live and invest in

Monaco continues to be perceived as an ideal place to settle in, not only because of its natural beauty and inviting coastal lifestyle, but also because of its status as a tax haven. In addition, the principality is an excellent access point for those wanting to conduct business in its neighboring European countries once travel restrictions are eased.

• Luxury real estate has historically been a safe haven for investors

Real estate is always a safe investment for the simple reason that land always holds value. Historically, luxury real estate has proven to be the most resilient sector in the industry, and is the first to bounce back after an economic downturn.

Tips on selling your Monaco home during the pandemic

Despite the relatively encouraging market conditions in Monaco, home sellers will do well to make some adjustments in their strategies to ensure a successful outcome.

Here are some of the steps you can take.

1. Do your research. Don’t walk into the process blindly; you want to know what types of properties are popular, which locations are seeing an uptick in sales, and how much similar properties are going for throughout Monaco. This helps you to know how to price your property right and when is the right time to sell.
2. Maximize the internet. While virtual tours have been a common tool for years, their use during the pandemic has increased. In fact, virtual tours are projected to remain popular even after the pandemic, with buyers making offers even without visiting a property in person. Your agent may also schedule video calls with prospective buyers to help you take stock of potential buyers and how motivated they are to buy.
3. Spruce up your property. In line with the widespread use of virtual tours, it’s important to make sure your property lives up to the close scrutiny online. Make the necessary cosmetic fixes (aside from crucial repairs) to make your property as attractive as possible. Staging is very important to appeal to what homebuyers are looking for in today’s market, particularly the need for more space to work or study from home, engage in new hobbies, or simply have a pleasant experience while isolating in place.
4. Work with an experienced real estate agent. In selling your home during the pandemic, it’s definitely a good idea to work with a highly reputable and knowledgeable real estate agent. With the intricacies of the market and properties in the million-dollar range, you want to make sure you’re doing everything right. Take advantage of the agent’s vast network and knowledge to get the best deal.

Even in the toughest of times, Monaco real estate remains strong and resilient. Savvy buyers and investors are ready to take advantage of the opportunities on the market, so with the right preparation and the guidance of a local real estate expert, you can expect to close a great deal on your property.

In the 10 years we have been in the business, we at Spark & Partners have cultivated long-term relationships with our clients and know the Monaco real estate market like the back of our hand.

Call us today at +377.97.777.000 or email hello(at)spark-estate(dotted)com.