President of the Monegasque Chamber of Real Estate sees recovery ahead.
The real estate market in Monaco has been badly affected by the global economic crisis. Cumulative property transaction income up to the end of May 2010 is 49% less than budgeted, equating to a 23 million euro shortfall, which drops to 26.8 million euros when other real estate receipts are taken into account.
Michel Dotta, President of the Real Estate Chamber [1] as well as the CDE [2], confirms the downward trend. Based on the first 6 months of 2010, there are likely to be just 180 transactions this year compared to:
In spite of the downturn, Dotta says that average prices are relatively stable, although compared to reported prices in 2009 and 2008 [3], they are much less. The advertised price per square metre wavers between 30,000 and 35,000 euros, whereas for finalized sales it varies from 28,000 to 32,000 euros.
The rental market is also suffering, with new contracts being negotiated at around 10% less than the average 50 euros per square metre per month. Before the crisis around 99% of rental property was occupied, but now many apartments remain empty.
Dotta remains optimistic, trusting that the cyclical nature of the market will soon lead to an upturn.
Links:
[1] http://www.chambre-immo.monte-carlo.mc/
[2] http://www.cde.mc/?lang=en
[3] http://www.monaco-iq.com/monaco-still-expensive-for-property
[4] http://www.nicematin.com/article/monaco/immobilier-deux-fois-moins-de-transactions-quen-2008