Common Mistakes When Buying Property in Monaco

Published on October 3, 2025 and written by Cyril Jarnias

Buying Real Estate in Monaco: Mistakes to Avoid

Buying real estate in Monaco is often seen as a prestigious and secure investment, but even in this privileged market, costly mistakes can occur.

Between property overvaluation, lack of knowledge about local regulations, and neglecting to assess additional costs, there are many pitfalls for buyers, whether they are novices or experienced.

In this article, we will highlight these common mistakes to help you wisely navigate the unique real estate market of the Principality and thus avoid future disappointments.

Pitfalls to Avoid When Buying Real Estate in Monaco

Common Pitfalls When Buying Real Estate in Monaco

• Neglecting research on the local market: The Monaco real estate market is highly competitive and particularly unique, with scarce properties and extremely high prices. Limiting yourself to a single offer or not comparing multiple options can lead to a poor choice, both financially and in terms of quality.
• Being tempted by deals that seem too good to be true: Attractive prices may hide hidden defects or legal issues. It is essential to remain vigilant against unscrupulous sellers who might conceal certain negative aspects of the property.
• Underestimating the total cost of ownership:
  • Beyond the purchase price, buyers must anticipate:
    • High property taxes
    • Notary fees above the European average
    • Condominium fees that can be particularly significant in the Principality
  • Currency fluctuations (transactions in euros) can also impact the cost for foreign buyers.
• Ignoring strict local regulations: The Principality imposes very rigorous regulations on the legal and technical compliance of real estate properties. Acquiring a non-compliant property exposes you to costly administrative complications.

Legal Risks	Potential Consequences
Hidden defects	Costly unexpected repairs
Non-compliance	Delays in obtaining the title deed or inability to occupy/re-rent

• Overlooking local professional assistance:
  • Not hiring a specialized lawyer or an experienced real estate agent significantly increases the risk of error. Only these professionals are fully familiar with the specific regulatory and tax aspects unique to Monaco.
  • Also be cautious of individuals claiming to be agents without the required legal status.

Systematically working with a notary AND a lawyer specialized in Monegasque real estate secures every administrative step.

Practical Tips to Avoid Rushing Due to Limited Available Properties

• Compare multiple offers before making any final decision.
• Schedule multiple visits, ideally at different times/days to fully appreciate the neighborhood, sunlight, and detect any hidden defects.
• Thoroughly inspect all technical installations (plumbing, electricity, etc.), even if they appear new or luxurious.

Checklist to Secure Your Purchase

• Accurately assess all additional fees (maintenance charges, taxes).
• Verify the administrative compliance of the property with the city hall/principality.
• Refuse any pressure for a quick decision under the pretext of scarcity; seek advice from independent local experts before any written commitment.

Monegasque real estate requires extreme vigilance and sharp professional guidance to avoid costly mistakes.

Understanding the Monegasque Real Estate Market to Avoid Bad Surprises

The Monegasque real estate market is renowned for its exclusivity, record prices, and strong appeal to a wealthy international clientele. Monaco stands out as one of the most expensive markets in the world, benefiting from political stability, favorable taxation, and a dynamic economic environment. The market remains highly competitive despite a recent contraction in the number of transactions, with an average annual volume around 400-450 sales in recent years.

Indicator	Value (2024)
Average new property price	€53,000/m²
Average resale price	€48,000/m²
Record observed	>€51,900/m²
Total sales volume	≈€3.7 billion

Market Specificities:

• Extremely limited supply due to the small territory area.
• Spacious apartments are particularly rare and sought after; their price per square meter exceeds that of smaller units.
• Relatively low rental yields compared to the high purchase value; the main interest lies in asset appreciation rather than immediate return.
• Neighborhoods such as Monte-Carlo concentrate a significant share of high-end transactions.

The importance of geographic location is crucial: each neighborhood has its own characteristics in terms of ambiance, accessibility, and view (sea or mountain). The price gap between neighborhoods can be substantial.

List of the Most Sought-After Neighborhoods:

• Monte-Carlo
• Carré d’Or
• Fontvieille
• Larvotto

Current Trends:

Prices continue to rise (+2 to +3% per year), driven by sustained demand despite a decrease in the total number of transactions. Supply remains limited, especially for family homes or very high-end properties. Demand mainly comes from investors seeking asset security and no income tax.

Factors influencing a potential buyer include:

• Structural scarcity that makes every opportunity interesting but also requires thoughtful consideration;
• The high amount required for any purchase;
• Extreme competitiveness during negotiations for exceptional properties;

Common Pitfalls to Avoid:

• Do not underestimate administrative complexity: Monaco has its own legal requirements for real estate acquisitions (strict banking justification, rigorous anti-money laundering checks).
• Ignore certain mandatory additional fees related to notary acts or high condominium charges.
• Rely solely on listings without verifying the actual condition of the property or obtaining all required technical guarantees.

Practical Tips:

To secure your investment:

• Imperatively collaborate with an experienced real estate agent who knows the local landscape and all Monegasque regulatory specifics.
• Systematically seek specialized legal assistance to verify all documents related to the desired property (land titles, diagnostics, etc.).
• Take the necessary time to compare multiple offers in different neighborhoods: even if the market is tight, there is always some flexibility based on your personal criteria (sea/mountain view, direct access to amenities, etc.).

Checklist for Conducting Effective Research:

• Precisely define your priority needs (size/floor/view/location)
• Establish your overall budget including all fees
• Demand total transparency on the property’s history and associated charges
• Prepare your financial proofs before any written offer

A real estate purchase in Monaco requires rigor and anticipation: surrounding yourself with the best professionals from the start not only helps avoid bad surprises but also—often—allows you to quickly seize the right opportunity in this ultra-selective micro-market.

Financial Mistakes Not to Make During Your Investment in Monaco

Specific Financial Mistakes to Avoid in Monaco Real Estate Investment

• Neglecting thorough research on the local market
  Investing in Monaco without meticulously studying the market exposes you to the risks of buying at the wrong price or in an unsuitable area. The Monegasque market is known for its very high prices, ranging between €36,000 and €44,000/m². Not inquiring about local specifics (neighborhoods, available offers, evolution prospects) can lead to poor valuation of the purchased property.
• Lacking preparation for abrupt price variations
  Fluctuations in the Monaco real estate market are marked by volatility higher than in many other cities. Acquiring a property without anticipating these variations can result in a loss of value in case of a rapid market downturn.
• Underestimating additional costs
  • Registration and notary fees (approximately 9% of the purchase price)
  • VAT applicable on certain real estate properties
  • Legal costs related to compliance with specific notarial procedures in the Principality
  Not including these fees in your financial plan compromises overall profitability.

Cost	Rate / Estimated Amount
Registration/notary fees	~9% of price
VAT	Up to 19.6%
Initial deposit	Approximately 10%

• Ignoring restricted access to bank financing
  Local banks are often reluctant to grant mortgage loans to non-residents or foreigners; therefore, a substantial personal contribution or alternative solutions must be planned before any commitment.
• Starting without long-term financial planning
  Not establishing a solid wealth strategy nor anticipating future needs (liquidity, resale) significantly increases financial risk. A lack of liquidity can force a rushed sale with potential losses.

Key Points to Secure Your Investment:

• Always conduct a comprehensive analysis of trends and cycles specific to the Monaco micro-market.
• Include all additional fees in your projected budget.
• Verify your actual borrowing capacity with local banking institutions before any offer.
• Prepare a financial reserve to handle unforeseen events related to both management and the future evolution of the property.

Surrounding yourself with local experts remains essential to avoid any harmful approximations during each decisive step.