Published on and written by Cyril Jarnias
Monaco: The New vs. Old Real Estate Matchup
Monaco, this tiny yet prestigious Mediterranean rock, attracts investors and luxury enthusiasts from around the world. With its real estate prices among the highest globally, it’s no surprise that purchasing property, whether new or old, constitutes a crucial decision.
Good to Know:
The Monegasque real estate market remains one of the most stable and sought-after despite global economic fluctuations.
While some value the timeless charm and history of older properties, others prefer the modern facilities and latest technologies of new constructions.
A Statistical Comparison
This article examines a detailed statistical matchup between these two strategic choices within Monaco’s unique and exclusive market context.
Advantages of New Real Estate in Monaco
Acquiring new real estate in Monaco offers several major tax advantages, particularly the absence of property tax and residence tax, significantly reducing annual ownership costs compared to other European countries. This makes Monaco a fiscally attractive environment for real estate investors.
The complete absence of property tax or recurring property taxes significantly reduces owners’ annual expenses.
Additionally, when purchasing new properties, transfer duties are more favorable than for older ones:
| Type of Acquisition | Total Fees (%) | Notary (%) | Registration (%) |
|---|---|---|---|
| New Real Estate | 2.5 | 1.5 | 1 |
| Old Real Estate | 6.25 | 1.5 | 4.75 |
New constructions in Monaco stand out through high architectural quality, regularly incorporating:
- Eco-friendly materials
- Modern energy systems (high-performance insulation, advanced home automation)
- Design compliant with latest environmental standards
This modernity ensures not only optimal comfort but also better energy performance and increased long-term property value.
Another key advantage: the systematic presence of a ten-year warranty that covers any hidden defects or structural issues for ten years. This warranty provides valuable protection for buyers against technical risks inherent to recent constructions.
Monaco is characterized by:
- Extreme scarcity of buildable land
- Highly regulated urban development
- Strong land pressure
This gives the new property market a particularly exclusive character and generally ensures good resilience of real estate values over time.
New vs. Old Comparison:
| Advantages | New Real Estate | Old Real Estate |
|---|---|---|
| Property/Residence Tax | None | None |
| Acquisition Fees | Reduced (2.5%) | Higher (6.25%) |
| Quality/Standards | Eco-friendly & Modern | Variable |
| Ten-Year Warranty | Yes | No |
| Maintenance/Renovation Costs | Low | Often Higher |
Thus, investing in new properties in Monaco not only provides exceptionally favorable tax conditions but also access to legally and technically secured assets—offering undeniable added value compared to older properties that often require more work and lack builder warranties.
Good to Know:
Buying new real estate in Monaco offers significant tax advantages, such as no property or residence taxes, representing substantial savings compared to older properties. New constructions stand out through the use of eco-friendly materials and cutting-edge energy equipment, ensuring optimal energy performance. Additionally, these properties benefit from a ten-year warranty that protects buyers against construction defects. Given the land scarcity in the Principality, new real estate constitutes a safe investment, aligned with Monaco’s dynamic urban development. Older properties, while historic, don’t offer the same innovations and protections, highlighting the added value for those choosing new constructions.
Cost and Benefit Analysis of Old Real Estate
Acquisition Costs for Old Properties in Monaco
- Purchase Price: In 2025, the average price per square meter for older properties exceeds €50,000, with prestigious locations reaching or surpassing €100,000/m².
- Notary Fees: Typically range between 6% and 7% of the acquisition price.
- Renovation Costs: For older properties requiring complete renovation, costs can be significant. Cheaper properties (starting from ~€30,000/m²) often require major work.
| Item | Indicative Range |
|---|---|
| Old Property Price/m² | >€50,000 |
| Notary Fees | 6–7% of price |
| Renovation | Several thousand €/m² |
Potential Benefits of Old Properties
- Authentic charm, historical architecture and unique character difficult to replicate in new constructions
- Central locations, often in the heart of iconic districts (Monte-Carlo, Carré d’Or), offering immediate proximity to shops, beaches and cultural events
- Potential for additional value appreciation with successful renovation
Maintenance Costs and Recurring Charges
Older properties involve:
- Often higher charges (facade renovation, structural maintenance)
- Regular maintenance or costly technical upgrades (elevator, plumbing…)
In comparison:
- New properties typically benefit from ten-year warranties and better energy performance reducing certain costs
However, charges remain generally high in Monaco across all categories.
Potential Resale Value & Market Evolution
Older real estate maintains very strong heritage value due to Monaco’s land scarcity. Growth remains steady:
“The average price per square meter for older properties has nearly doubled in ten years”
“From ~€28,173 in 2010 to nearly €52,000 in 2023”
“Approximately +71% over ten years”
The tension between very limited supply and global demand ensures exceptional liquidity even for older properties—particularly when renovated or located in sought-after neighborhoods. However, new apartments sometimes command an additional premium due to contemporary amenities or exceptional views.
Recent Statistics Illustrating Appreciation
| Year | Average Price/m² Old (€) |
|---|---|
| 2010 | ~28,173 |
| 2019 | ~48,151 |
| 2023/2025* | >50,000 (up to >100k) |
* Prestigious properties exceed these averages; studios from ~€1 million, larger surfaces significantly more expensive.
Key Takeaway:
Investments in Monegasque older real estate require substantial budgets for both purchase and maintenance. However, they offer attractive potential through unique character, central locations and especially the exceptional resilience of the local market against international fluctuations.
Good to Know:
In Monaco, acquiring older real estate requires evaluating high purchase costs, to which are added notary fees often higher than for new properties, as well as renovation costs that can be significant for modernizing outdated infrastructure. Nevertheless, the authentic charm and central locations of these properties are major assets, often difficult to reproduce in new constructions. However, maintenance costs and recurring charges can be higher for older buildings due to their construction and required maintenance standards. In terms of resale, while older properties can maintain high value due to their prestigious locations, market evolution shows that new properties sometimes record faster appreciation. According to recent statistics, although the price difference per square meter remains small between old and new, older properties may see their value stagnate compared to modern constructions benefiting from contemporary infrastructure and design.
Statistical Comparison Between New and Old in Monaco
The Monegasque real estate market stands out for its exceptionally high prices, both in new and old segments, with record levels recently reached. Land scarcity, sustained international demand and extension projects like Mareterra contribute to maintaining strong price pressure.
Average Prices per Square Meter in 2024:
- All segments combined: €51,967/m²
- Year-over-year growth: +1.1%
- Ten-year growth: +44%
| Segment | Average Price per m² (2024) | Median Price per Property (2024) | Transaction Volume (2024) |
|---|---|---|---|
| New | Up to €120,000/m²* | €22M (Mareterra – ultra high-end) | €3.7B |
| Old | ~€51,967/m² | €3.6M | €2.2B |
*Some ultra-premium new properties can significantly exceed the general average.
Price Gaps Between New and Old
- New developments such as Mareterra display prices significantly higher than those observed for older properties. New villas there have sold for over €100 million.
- The average new property price is pulled upward by these exceptional assets; however, even excluding “super prime,” the differential remains marked.
- Older properties show a much lower median price for standard apartments or studios (~€1.9 million for a studio).
Recent Trends
- After several years of growth (+44% in ten years), progression slows but remains positive (+1% in 2023–24).
- Transaction volume for older properties declined (-6%), but amounts remain stable due to continuous valuation of existing stock.
- In new properties, Mareterra’s exceptional offering exploded volumes and historical records.
Additional Fees
| Type of Fee | Old Real Estate | New Real Estate |
|---|---|---|
| Notary Fees | Approximately 6–7% | Approximately 2–3%(excluding new VAT)* |
| VAT | Not applicable | Applicable depending on project |
*New property sales often benefit from reduced or specific taxation depending on their legal status.
Local Specificities and Supply/Demand Impact
- Extreme land scarcity: Monaco being landlocked and already very densely built, any new real estate operation involves either reconstructions or spectacular extensions like Mareterra.
- Stable or growing global demand, driven by wealthy clients seeking legal/fiscal security along with an exclusive environment.
- Strict regulatory constraints favor high architectural quality but further limit new supply.
Visual Comparative Summary
+------------+----------+---------+----------+
| | Price/m²* Old New |
+------------+----------+---------+----------+
| Range (€) ~52K ~70K/120K** |
*Observed average price; **For some premium lots at Mareterra.
Key Factors Explaining Gaps:
- Limited supply vs. global demand
- Attractive tax status reinforcing residential appeal
- Increased scarcity of available land
- Ultra-luxury new projects temporarily boosting overall statistics
Good to Know:
In Monaco, the average price per square meter for new real estate exceeds €65,000, compared to approximately €50,000 for older properties, reflecting a significant gap attributable to land scarcity and strict regulations. New properties tend to appreciate slightly per year, while older ones have recently seen stabilization after sustained growth. Notary fees for new properties, often lower due to tax incentives, remain an important consideration alongside property tax which weighs more heavily on older properties. With stable demand facing restricted supply, the market remains tight, and it’s advisable to compare cost variations and required renovations according to local regulations before any investment.
Impact of Builder Warranties on New Property Purchases
A builder warranty is a mandatory legal protection that covers buyers of new real estate against various defects or faults that could affect the building’s solidity or habitability after delivery. In Monaco, as in France, these warranties play a central role in new property purchases: they secure the client’s investment and strengthen confidence in the developer or builder.
The main warranties applicable to new real estate are:
- Perfect Completion Guarantee: covers for 1 year all defects reported at project acceptance.
- Ten-Year Warranty: protects for 10 years against damages compromising the structure’s solidity or making it unfit for its purpose.
- Construction Damage Insurance: quickly pre-finances repairs falling under the ten-year warranty.
| Warranty Type | Duration | Scope of Application |
|---|---|---|
| Perfect Completion | 1 year | All defects reported at acceptance |
| Biennial (equipment) | 2 years | Separable elements |
| Decennial | 10 years | Solidity, habitability |
In comparison, for older properties:
- These warranties no longer apply (or have expired if the building is over ten years old).
- The buyer is generally only covered by any potential hidden defects guarantee from the seller, which is much less extensive and difficult to enforce.
This contrast between new and old properties strongly influences buyer decisions:
Buyers perceive new properties as secure purchases thanks to extensive warranties that significantly limit their exposure to unexpected costs related to structural defects. They also benefit from better heritage valuation since these legal protections can be transferred to future successive owners.
According to various sector studies, approximately 65% of buyers consider builder warranties decisive in their choice between new and old—this figure rises to 80% for first-time buyers seeking security and peace of mind. The presence of construction damage insurance also allows for quick resolution without waiting for court rulings on potential responsibilities.
Long-term, buying new real estate with these protections significantly reduces financial risks related to unanticipated major repairs. Conversely, investing in older properties potentially exposes owners to high costs for uncovered repairs if they occur after acquisition; this can negatively impact both total cost and future valuation of held assets.
Good to Know:
In Monaco, buying new real estate often comes with builder warranties, such as the ten-year warranty covering major defects for ten years, or the biennial warranty for equipment. These warranties offer increased security compared to older properties, which often lack such insurance, and can alleviate unexpected costs for major repairs. For example, a local study showed that 65% of new property buyers consider these warranties essential in their decision, perceiving superior added value and peace of mind. In comparison, buying older properties often involves unexpected expenses for refurbishment, which can lead to heavier financial implications long-term, without the reassuring coverage of builder warranties that new properties offer.
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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.
