Monaco real estate market and financial markets
Interested in the property market in Monaco? Then see the latest market report from Monaco Properties.
The real estate market of Monaco has been particularly dynamic since the beginning of 2018. As stated in our newsletter from February 2018, there has never been two consecutive years of decrease in the average value of real estate transactions in the principality. The very positive trend of the first half of 2018 is confirming this statement and the dynamism of the market is being supported by the so-called wealth effect. As investors are experiencing extraordinary positive returns from their financial assets invested in stock markets of developed countries, they feel thus more comfortable and secure about their wealth, causing them to purchase new real estate properties.
There is a strong correlation between the logarithm of the 12 months moving average of the S&P 500 Price Index (blue line) and the 12 months moving average of the number of real estate transactions in Monaco (yellow line). The S&P 500 is the worldwide leading stock market index of the 500 largest companies in the United State (US) and it is experiencing a very solid growth thanks to the strengths of the US economy.
Even if we strongly believe in the current strengths of the US economy for the short and middle term, we also want to warn our exclusive clients that what goes up might come down at some point in time. As real estate markets in Europe and especially the real estate market of Monaco plays in time of economic troubles the role of a safe heaven, we see the current situation as a great opportunity for investors to secure their gains in investing in a real estate property in Monaco.
To read the whole report click here.