Published on and written by Cyril Jarnias
Nestled between the mountains and the Mediterranean Sea, Monaco embodies unparalleled luxury and remarkable economic stability, making this sovereign state a true magnet for investors.
Commercial real estate here presents unique opportunities, offering not only growing asset value but also the prospect of stable rental income.
With a market limited in surface area due to its compact territory, demand for commercial space remains consistently high, making this investment sector extremely attractive.
Discover how Monaco’s cultural and economic specificities shape real estate market trends and how you can leverage them to optimize your returns.
Unmissable Opportunities in Monaco’s Commercial Real Estate
Commercial real estate in Monaco represents an unmissable opportunity for investors, driven by a unique set of competitive advantages and solid market data.
Tax Benefits
- Monaco imposes neither income tax for individuals (excluding French nationals) nor wealth tax.
- Commercial companies benefit from advantageous taxation, particularly due to the absence of property tax and inheritance tax on real estate held by a company.
Strategic Geographic Location
- Situated in the heart of Europe, between France and Italy, Monaco offers direct access to major European markets.
- Its immediate proximity to Nice Côte d’Azur International Airport facilitates quick international travel for business.
Strong Demand and Commercial Market Dynamics
Demand for commercial premises remains high, particularly in key sectors like finance, luxury, technology, and hospitality.
The average price per square meter for commercial properties remains well above €50,000, with a continuous upward trend over several years.
In 2023, the occupancy rate for prime offices remained above 95%, despite a slight contraction in the total number of transactions. This scarcity supports the constant appreciation of assets.
| Year | Average Price €/m² | Occupancy Rate (%) |
|---|---|---|
| 2023 | 51,418 | >95 |
| Forecast 2024/25 | >50,000 | Stable |
Thriving Sectors
Opportunities are particularly attractive in:
- Finance & Private Banking
- Wealth Management/Family Offices
- Innovative Technologies (Fintech)
- Luxury: High-End Boutiques & Jewelry
- Hospitality/Gourmet Restaurants
Financial and technological sectors strongly stimulate demand for modern offices; while high-end tourism favors premium retail and hotel establishments.
Examples of Successful Companies That Have Invested in Monaco
Major international houses such as:
- Société Générale Private Banking,
- Julius Baer,
- SBM Monte-Carlo (Société des Bains de Mer),
- Prestigious brands like Chanel or Cartier,
have chosen Monaco for their commercial presence or regional headquarters.
Practical Tips for Potential Investors
To maximize your return:
- Prioritize strategic locations near the Carré d’Or or Port Hercule.
- Invest in versatile premises that can accommodate various types of activities to limit rental risk.
- Rely on a strong local network (specialized real estate agencies, Monegasque lawyers) to optimize tax structuring and regulatory compliance.
- Leverage sector dynamism by primarily targeting finance-tech/luxury/international retail.
Monegasque commercial real estate combines economic stability, structural land scarcity, and attractive taxation—key assets that explain why it remains sought after by both institutional and private players seeking asset security and sustainable returns.
Good to Know:
Commercial real estate in Monaco offers exceptional investment opportunities due to its attractive tax regime, which appeals to many companies. Its strategic geographic location, in the heart of Europe, attracts an affluent international clientele. The market shows strong growth with occupancy rates close to 98% and increased demand for commercial premises despite limited supply. Sectors such as luxury, finance, and green technologies are booming, generating unique opportunities. Successful companies like the SBM Group and MonacoTech demonstrate the lucrative potential of these investments. To maximize returns, investors should target properties in sought-after neighborhoods like Monte-Carlo or the Carré d’Or, while relying on local advisors to navigate this dynamic market.
Exploring Sought-After Commercial Property Types
In Monaco, the commercial real estate market is characterized by strong demand and limited supply, making certain types of properties particularly attractive to investors.
| Property Type | Key Characteristics | Recent Examples / Sought-After Neighborhoods |
|---|---|---|
| Luxury Offices | Located in prestigious buildings (e.g., Carré d’Or), offering renowned addresses, 24/7 security, high-end services. High rental potential due to international demand. | “Botticelli” in Fontvieille; offices in Golden Square |
| Retail Spaces | Boutiques in prestigious locations like the Metropole Shopping Center or Les Allées Lumières. Maximum visibility, high foot traffic, and affluent clientele. | Metropole Shopping Center; Carré d’Or boutiques |
| Hotels & Hotel Complexes | Rare properties integrating premium amenities: spas, starred restaurants, and exceptional sea views. Target high-end international tourism and major events organized in the Principality. | New hotels linked to the Mareterra project |
| Specialized Industrial Premises | Spaces adapted for yachting businesses, automotive showrooms, or warehouses for fine logistics (often in Fontvieille). Usage flexibility according to the intended activity. | Warehouses/commercial premises in Fontvieille |
Main Assets Making These Properties Attractive:
- Strategic location, particularly around the Carré d’Or (Golden Square), Monte-Carlo, or Fontvieille.
- Optimal accessibility, immediate proximity to financial centers and international networks.
- High rental yield potential, fueled by land scarcity and constant pressure on real estate supply.
- Current trends: marked resurgence for new developments like Mareterra, which recently added residential units as well as unprecedented commercial spaces—reflecting a record increase in total transaction volume (+21% in 2024).
- Increased sensitivity to environmental criteria: eco-efficient buildings preferred by sustainability-conscious investors.
“Prime locations districts offer high foot traffic and a chance to establish a business amidst a clientele with significant purchasing power… Office spaces – sophisticated environments providing tenants … prestigious addresses”
“Commercial property: includes office buildings, retail space, warehouses and hospitality facilities such as hotels and restaurants… providing numerous opportunities for business development”
Monegasque Regulatory Environment Strongly Influences Commercial Development:
- Land availability is very restricted due to the territory’s small size,
- Projects must comply with strict standards in both urban planning and ecology,
- Attractive taxation continues to draw international companies eager to establish a local presence.
The combination of extreme land scarcity, international prestige, and institutional stability explains why every new commercial opportunity generates keen interest from savvy investors.
Good to Know:
In Monaco, commercial real estate is diverse and includes luxury offices, retail spaces in prestigious areas like the Carré d’Or, as well as award-winning hotels and hotel complexes for their excellence and attractive locations. Investors are drawn by the high rental yield potential, market stability, and exceptional accessibility of these properties. Luxury offices, often located near business centers and public transport, offer high-end services that perfectly meet the needs of international companies. Luxury boutiques, set in attractive neighborhoods, benefit from an affluent clientele. Hotels profit from stunning coastlines and constant tourism, ensuring steady occupancy. Although industrial premises are rarer in Monaco, they are sought after for their compliance with the specific needs of the Principality’s high-end and innovative market. Local regulations, strict but favorable to sustainable development, influence the valuation and modernization of these properties, enhancing their appeal for investors seeking stable and profitable investments.
Profitability and Risks: Deciphering the Balance
Optimizing Profitability in Monaco’s Commercial Real Estate
Profitability in Monaco’s commercial real estate depends on a combination of local economic factors, sustained rental demand, and an attractive fiscal environment. To maximize investment returns while managing risks, it is essential to understand the dynamics specific to the Monegasque market as well as regulatory specificities.
| Key Factors | Impact on Profitability |
|---|---|
| Land Scarcity | Maintains upward pressure on prices and rents. |
| Political/Fiscal Stability | Fosters a secure climate for long-term investment. |
| International Rental Demand | Guarantees a high occupancy rate year-round. |
| Strategic Neighborhoods (Monte-Carlo, Fontvieille) | Offer among the highest yields in the country due to their attractiveness and economic dynamism. |
Examples of average rental yields:
- Well-located commercial premises: around 2.5% gross annually.
- Studios or compact properties near amenities: approximately €3,000/m²/year.
- Large properties (>4 rooms): over €20,000/m²/year.
Major urban projects (Mareterra maritime extension, transformation of the Carré d’Or) also contribute to asset appreciation by enhancing international prestige and creating ultra-luxury real estate that meets strict environmental standards.
Risks Associated with Investment
Despite its recognized stability, investing in Monegasque commercial real estate presents several risks:
- Fluctuations in the global real estate market that may indirectly impact local demand.
- Legislative or regulatory reforms that could affect certain uses or conditions of commercial leases (strict compliance with co-ownership/Principality regulations).
- Specific challenges related to commercial leasing, including:
- Complex lease renewals subject to local laws,
- Risk linked to high turnover in certain commercial sectors,
- Significant ancillary costs (high notary fees during business transfers or acquisitions).
Summary list of main risks:
- Possible volatility in the retail/office sector depending on international economic cycles
- Strong administrative constraints for certain activities
- Dependence on high-end/international profiles
Advantageous Tax Policies
The fiscal environment remains a major asset:
Near-total absence of income tax and inheritance duties for residents; particularly favorable tax regime for established international companies.
Practical Tips to Maximize the Risk-Return Ratio
- Prioritize dynamic neighborhoods with high liquidity (Monte-Carlo, Fontvieille).
- Diversify assets among several types of commercial premises to mitigate sector risk.
- Ensure all local regulations are complied with before acquisition/launch of commercial activity.
- Systematically rely on specialized local legal/accounting advice to anticipate any impactful legislative changes.
- Integrate into long-term strategy the continuous upscaling and sustainable/pioneering positioning championed by Monaco.
Optimizing your investment therefore requires a selective approach based as much on the intrinsic quality of the property as on a fine understanding of the local economic context, while maintaining prudent management in the face of regulatory and cyclical uncertainties.
Good to Know:
Profitability in Monaco’s commercial real estate can benefit from strong rental demand, catalyzed by the Principality’s international appeal and advantageous tax policies, but it is not without risks. Investors should be wary of fluctuations in the local real estate market, which can be sensitive to global economic changes, as well as legislative reforms that may affect commercial leases. Optimizing profitability involves carefully choosing the location, prioritizing properties suited to tenants’ needs, and staying informed about market trends. For example, integrating coworking spaces could meet the growing demand for flexible workspaces. By balancing these elements and ensuring proactive property management, investors can increase their returns while minimizing risks.
Key Trends in the Monegasque Real Estate Market
Commercial property prices in Monaco remain among the highest in the world, with an average price exceeding €51,000 per square meter in 2025 for prime properties, and reaching or exceeding €100,000 per square meter in some highly sought-after neighborhoods. This dynamic is explained by persistent demand despite a slight decrease in transaction volume over the past two years. The market remains supported by supply scarcity and the Principality’s tax attractiveness. Commercial rents have also seen a moderate increase, reflecting very limited availability for prime spaces.
The average price per square meter remains above €50,000, reflecting continued demand for luxury homes, despite fluctuations in the number of transactions.
— Internal Source
Commercial Property Types in High Demand
- Premium office spaces, driven by the financial sector and international activities
- Retail premises located on strategic axes or in prestigious galleries
- High-end hotels and serviced residences
- Mixed office/retail platforms meeting new post-pandemic needs
Preferred Neighborhoods for Commercial Investment
| Neighborhood | Main Assets |
|---|---|
| Monte-Carlo | Iconic address, tourist flow |
| Carré d’Or | International luxury, commercial prestige |
| Larvotto | Proximity to sea/beaches/high-end hotels |
| Fontvieille | Emerging business hub |
Recent Legislative Impact
- Reforms further regulating certain real estate transactions to ensure transparency and international compliance
- Increased control over the origin of invested funds (KYC/AML compliance)
- Maintenance of an attractive tax framework but increased vigilance regarding foreign investors
Influential Macro-Economic Factors
- Monegasque political stability continues to attract international HNWIs (high-net-worth individuals).
- Variations in international tourism directly impact hotels/restaurants/retail.
- Growth in Monaco’s financial sector generates sustained demand for premium tertiary surfaces.
- Ultra-limited land supply acts as a lasting bullish catalyst across all segments.
Outlook for 2025–2027
- Maintenance or even gradual increase in price/m² expected in prime locations thanks to unmatched tax attractiveness, legal and physical security, and unique ultra-luxury positioning
- Stable institutional demand for regular income-generating assets (offices & retail), particularly from European or international private investors/family offices seeking secure asset diversification
Monegasque commercial real estate market:
structural exclusivity + fiscal environment + stability = sustainable valuation & targeted opportunities.
Good to Know:
The Monegasque real estate market is experiencing an increase in commercial property prices, fueled by sustained demand, particularly for offices and retail spaces, with a preference for sought-after neighborhoods like Monte-Carlo and Fontvieille. Recent legislative developments, aimed at facilitating foreign investments, also favor this appeal, while the dynamism of the financial sector and growing tourist flows act as catalysts. Experts predict continuous growth for the coming years, despite potential challenges linked to global economic uncertainties. Consequently, investments in commercial properties in Monaco, particularly in strategic locations, remain an attractive opportunity for investors seeking to capitalize on a stable and lucrative market.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
