Monaco F1 Grand Prix Sparks Local Property Frenzy

The world’s wealthiest property hunters descended on Monaco during the recent Formula One Grand Prix weekend, sending real estate searches soaring and helping drive the city-state’s housing market to new record highs.

Luxury property marketplace JamesEdition reported a fivefold increase in searches for Monaco real estate during the race weekend, underscoring how the Principality’s signature events continue to amplify investor interest and market velocity.

“This dramatic spike underscores the direct connection between Monaco’s world-class events and its red-hot property market,” said Eric Finnas Dahlstrom, CEO of JamesEdition.

The surge in demand coincides with a historic milestone for the Monaco real estate market, as average capital values for prime residential properties climbed to €51,967 per square meter in 2024 — a 1% year-over-year gain and an all-time high, according to research from Savills.

New Supply Rewrites the Market Script

The completion of several high-profile developments — most notably Mareterra, Monaco’s ambitious land reclamation project — has reshaped the Principality’s supply-constrained market.

Total real estate sales in 2024 soared to €5.8 billion, smashing previous records, with €3.7 billion of that figure driven by new-build transactions, according to Savills Monaco.

Overall transaction volume rebounded 21% to 466 sales, largely fueled by Mareterra’s 101 new-build deals — a 260% jump from 2023.

High-end buyers dominated the segment: three out of four new-build sales topped €10 million, a steep rise from just one in four in 2022.

“For decades, the prevailing story of the Monaco property market has been one of chronic under-supply,” said Kelcie Sellers, Associate Director at Savills World Research. “The recent wave of completions, particularly Mareterra, has added much-needed stock — and transformed the dynamics of demand.”

Luxury Scarcity, Enduring Appeal

Even as Monaco welcomes a fresh crop of ultra-luxury residences — including those from Bay House and L’Exotique — the future supply pipeline remains limited. Land constraints and the rarity of large-scale projects ensure that scarcity will continue to define the market, reinforcing upward pressure on prices.

Combined with Monaco’s zero income tax regime, geopolitical stability, and elite lifestyle offerings, the Principality remains a magnet for global ultra-high-net-worth individuals seeking both a safe haven and a high-performing asset class.

As the Grand Prix weekend once again demonstrated, Monaco’s blend of spectacle and scarcity is a potent force in luxury real estate — where fast cars, fast deals, and record-setting prices increasingly go hand in hand.