Are you interested in investing in real estate in Monaco? Many investors choose to buy an apartment to rent out. The Monegasque tax system allows them to benefit from a rental return net of tax. What’s more, property tends to appreciate in value. This capital appreciation gives rental yields in Monaco of around 7% a year.
Rental yields of around 2% in Monaco
Rental yields in Monaco are around 2%. This rental return may seem low. This statement needs to be qualified in light of the specific features of the real estate market in Monaco. Firstly, these rental yields are tax-free for Monegasque residents.
Secondly, property investments in the Principality are more likely to be profitable over the long term, as a result of capital appreciation. Trends show that the value of an apartment continues to rise over the years.
When buying real estate in the Principality, properties appreciate by around 5% a year in all areas. By investing in a luxury apartment in Monaco, you can expect an overall return of around 7% a year.
Property prices on the rise throughout the Principality
Beyond rental yields, why invest in real estate in Monaco? Buying an apartment is one of the conditions required to obtain residency status. Monegasque residents benefit from an advantageous tax framework. They pay no tax on their personal income and no inheritance tax in the direct line.
This tax system is one of the many benefits of investing in Monaco. Especially as investors are reassured by the buoyant property market. Over the last 10 years, the price per square metre has risen steadily. In 2024, prices reached almost €53,000 in the Monte Carlo and Fontvieille districts.
According to the 2024 Real-Estate Observatory published by IMSEE, the average price per square metre has risen by 44.3% in 10 years. This significant increase offers good prospects for capital gains on resale. That’s why a real estate investment in one of Monaco’s neighbourhoods is worthwhile over the long term.
Increased profitability thanks to the buoyant Monegasque market
Monaco’s rental yields are not the main reason for investing in real estate in the Principality. Rather, it is capital appreciation that attracts investors. This increase in property value is made possible by the stability and buoyancy of the Monegasque real estate market.
The number of property transactions is reassuring. In 2024, they even increased by 12% thanks to the Mareterra project. Trends show that the total value of transactions has doubled in 10 years. In fact, it reached a record high of €5.9 billion.
Precautions to take before investing in real estate in Monaco
Because of its quality of life and advantageous tax system, Monaco attracts many investors looking to rent out apartments. A rental investment project of this kind requires the help of a real estate agency. Its expertise is essential for knowing how to finance a property purchase in Monaco and access exclusive properties.
The role of real estate agencies in investing in Monaco cannot be stressed enough. At Coletti Real Estate, we are here to support you throughout your real estate investment plans. Our team will find you the ideal apartment in the best area of Monaco. You can then entrust its rental to us as part of a property management service.
Want to know how to invest in Monaco? You should be aware that rental yields rarely exceed 2%. However, real estate investment in the Principality remains attractive as a result of the buoyancy of the Monegasque market. The increase in property values gives an overall return of around 7%.
