Tourism and Real Estate Market in Monaco: What’s the Impact?

Published on October 5, 2025 and written by Cyril Jarnias

Nestled on the French Riviera, Monaco stands out not only for its panoramic beauty and opulent lifestyle but also for a unique real estate market closely tied to its tourist appeal. As visitors from around the world flock to experience its charm, iconic casinos, and world-class events, tourism’s impact on real estate intensifies, shaping property demand and prices in this princely state.

This article explores the various dynamics between the thriving tourism sector and an ever-evolving luxury real estate market, revealing how this symbiotic relationship continues to attract international investors and adds to Monaco’s exclusive aura.

Irresistible Appeal of Iconic Neighborhoods

Monaco’s iconic neighborhoods, such as Monte-Carlo and La Condamine, attract both tourists and international investors through a unique combination of architectural, cultural, and event-driven features.

Specific Characteristics:

• Prestigious Architecture:
  • Monte-Carlo is famous for its Belle Époque buildings, particularly the Monte-Carlo Casino and the Hôtel de Paris.
  • La Condamine charms with its typical ochre rooftops and historic buildings mixed with contemporary constructions around Port Hercule.
• International Events:
  • The Formula 1 Grand Prix races through these neighborhoods annually, generating global visibility.
  • Events such as the Monaco Yacht Show or the Jumping International take place on the Port Hercule esplanade.
• Iconic Locations & Local Life:
  • The covered market at Place d’Armes embodies Monegasque tradition. It attracts locals and visitors with its friendly atmosphere and culinary diversity.
  • Luxury boutiques, casinos, and exotic gardens (like the Jardin Exotique) offer a unique lifestyle.

Neighborhood	Points of Interest	Major Events	Atmosphere / Style
Monte-Carlo	Casino, Hôtel de Paris	F1 Grand Prix, Ballets & Operas	International Luxury
La Condamine	Port Hercule, Covered Market	Yacht Show, Jumping Int’l	Tradition & Modernity

International Reputation:

• The glamorous image projected by these neighborhoods gives them a mythical status among wealthy clients seeking asset security and social prestige.
• The regular presence of celebrities during major events reinforces this exclusive aura.

Impact on Real Estate Demand:

Factors driving prices:

• Strong tourist appeal generates high seasonal rental demand (short-term rentals during major events).
• Foreign investors favor these areas for their perceived financial stability and continuous appreciation potential.

“The combination of land scarcity and an unparalleled international image explains why prices per square meter remain among the highest in the world.”

— Analysis by a Monegasque real estate agent

Some statistics:

• Average in 2024/2025:
  • Average price in Monte-Carlo exceeding €50,000/m²
  • Record transactions sometimes surpassing €100,000/m² for certain addresses
  • Annual rental occupancy rate close to 90% in the high-end segment

Influence on the Local Market:

The observed dynamics lead to:

• Constant pressure on available supply
• Gradual transformation of the urban fabric with prioritized luxury development (secure residences with hotel services)

“The high concentration of global events combined with architectural exclusivity acts as a ‘heritage magnet,’ durably consolidating real estate value.”

According to several urban planning experts cited by specialized press

In Summary:

• Exceptional appeal linked to architectural prestige
• Dense international event calendar
• Unmatched reputation reinforcing the global showcase effect

These elements fuel sustained demand that continuously drives the surge in real estate prices in these flagship neighborhoods.

Real Estate Price Surge: A Tourism Effect

The surge in Monaco’s real estate prices is largely explained by increased demand for luxury properties, particularly fueled by wealthy international buyers. Monaco’s appeal, reinforced by its status as a sought-after tourist destination, strongly stimulates interest in secondary and temporary residences, which exerts constant pressure on the limited supply.

In 2025, the average price per square meter exceeds €51,000, even reaching over €100,000 in some exceptional locations like the Carré d’Or or Larvotto. Studios start around one million euros, and family apartments with panoramic views or prime locations command significantly higher premiums.

Recent Price Evolution

Type/Neighborhood	Average Price €/m² (2023-2025)	Annual Variation
General Average (resale)	48,000 – 52,000	+1% to +2.8%
Carré d’Or (rental)	Up to €229/m²/month (5+ rooms)	N/A
Larvotto	~65,857	+5.6%
La Condamine	~54,100	+20%
Moneghetti	~46,511	N/A

The Carré d’Or, Larvotto, and recently Condamine neighborhoods concentrate record values in both sales and rentals. The shortage particularly affects large family apartments (3 rooms and more), whose price per square meter now exceeds that of smaller units.

Tourism Effect on Demand

• International buyers primarily seek:
  • Properties with sea views
  • Central locations near tourist attractions
  • Modern residences offering security and hotel services
• Monaco’s growing popularity among a global wealthy clientele boosts:
  • Demand for luxury secondary residences
  • High-end seasonal rentals during major events like the Grand Prix or Yacht Show

Government Initiatives

The Monegasque government has implemented certain measures to preserve housing access for its permanent residents:

• Limited development of the real estate portfolio to maintain exclusivity.
• Priority in some new programs for Monegasques.
• Strict monitoring of the rental market; partial regulation through land reserves for nationals.

However, these initiatives remain modest against international pressure that maintains exceptionally high levels across all types of private properties.

Regional Economic Outlook

Monaco’s economy remains closely tied to high-end tourist flows:

• The hotel sector anticipates stable or growing attendance thanks to major sports/cultural events.
• This dynamic indirectly supports premium real estate demand intended either for temporary rental or “pied-à-terre” acquisitions by foreign investors.

If this trend continues—which seems likely given the intact international prestige—real estate prices should continue their rise in the near future, particularly in the ultra-luxury segment strongly correlated with international tourism.

Lucrative Opportunities in Rental Investment

The constant influx of tourists in Monaco boosts demand for seasonal rentals, especially during peak activity like the Formula 1 Grand Prix or major conferences. In 2024, Monaco recorded an increase in hotel occupancy rates (+3 points) and a 5% rise in average nightly rates compared to the previous year, illustrating increased pressure on the rental market and growing interest in accommodations alternative to traditional hotels.

Most Sought-After Property Types

• Studios and one-bedroom apartments with sea views
• Residences located in the Carré d’Or, Monte-Carlo, or near the port
• Modern properties offering high-end services (pool, security, parking)
• Luxury villas for wealthy clientele

Property Type	Target Tourists	Sought-After Assets
Studio/1-Bedroom Apartment	Couples, solo travelers	Sea view, proximity to events
Family Apartment	Families	Common spaces, accessibility
Villa/Independent House	VIP Groups	Luxury, privacy, private amenities

These preferences strongly guide investor choices toward well-located properties offering a high level of amenities. High season periods (May-September) see exploding demand; it’s common for rental yields to climb to 3% to 4% gross annual in short-term rentals, or even more during certain exceptional events. In low season (October-April), this yield can drop to around 2% to 2.5%, depending on location and property quality.

Among Potential Challenges:

• Strict regulation on furnished tourist rentals requiring specific declarations or annual limitations.
• Occasional saturation in some highly demanded neighborhoods leading to increased competition among owners.
• Rapid evolution of tourist expectations requiring constant adaptation of the offered standard.

To Maximize Profits Through Tourism:

1. Prioritize acquisition in central sectors near major events.
2. Invest in high-end renovation to stand out.
3. Regularly adapt offerings through efficient digital platforms.
4. Diversify rental calendar to attract different targets outside high season.

The recent positive evolution of tourism confirms that Monaco remains a very attractive market for seasonal rental investment—subject to rigorous management facing local regulatory constraints.