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14 avenue de la Costa, 98000 MonacoThe real estate market in the Principality of Monaco is undergoing a historic transformation. While sale prices remain stable around €52,000 per square meter according to the latest IMSEE data, a new trend is emerging, a clear improvement in rental yields. For investors, Monaco is no longer merely a store of value, but a strategic asset capable of generating steadily growing income.
A paradigm shift in returns
For decades, investing in Monaco followed a purely patrimonial logic, with rental yields hovering around 1.5 percent and only rarely reaching 2 percent. In 2025 and 2026, the picture has changed.
Today, net yields most often fall within a range of 2.5 percent to 3.5 percent. This increase, modest at first glance, is monumental for such a premium market. Monaco’s strength lies in the fact that gross yield is almost identical to net yield. With the exception of French and American tax residents, taxation is virtually non-existent:
• No tax on rental income.
• No property tax or residence tax.
• No capital gains tax on real estate.
Unprecedented rental pressure, the reasons behind the surge
The improvement in yields is not accidental, it stems from a clear imbalance between supply and demand. Monaco’s rental market is currently under intense pressure.
Since early 2025, rent increases have ranged from 8 percent to 15 percent, reaching even higher levels for exceptional properties. Several structural factors explain this tension:
- The influx of new fortunes
The end of the “Non-Dom” regime in the United Kingdom and fiscal instability across Europe are prompting many ultra-wealthy residents to rethink where they live. Added to this is a growing search for security in a broader sense. Some major fortunes no longer feel fully protected in their home countries, both fiscally and in terms of personal safety, and are turning to Monaco’s stability.
- The caution of new arrivals
Before purchasing, many new residents choose to rent for one or two years in order to explore neighborhoods and wait for the ideal buying opportunity.
- Record occupancy rates
With vacancy close to zero, below 5 percent, landlords are in a strong position.
Segment analysis, where does yield really lie?
Not all property types offer the same level of return. In Monaco, the golden rule remains simple, the higher the price per square meter, particularly in the ultra-luxury segment, the lower the mathematical yield.
- Small units, the queens of yield
Studios and one-bedroom apartments remain the most liquid assets. Highly sought after by professionals and couples, they deliver the most attractive returns, frequently approaching 3 percent and sometimes more. Their management is straightforward and, although tenant turnover is higher, vacancy periods are virtually non-existent.
- Family apartments, a critical shortage
Three- and four-bedroom apartments are now the most strained segment. The massive arrival of international families has created a shortage of larger homes, especially as these tenants tend to move less, families prioritize stability. In this segment, negotiation is almost unheard of, scarcity dictates the price.
- Commercial property and offices
For investors focused purely on cash flow, commercial premises offer higher yields, between 3 percent and 4 percent. However, they do not benefit from the same long-term capital appreciation curve as residential property.
Investment geography, from the Carré d’Or to emerging districts
Location directly impacts your price-to-rent ratio.
- Carré d’Or and Larvotto
Purchase prices are so high that rental yields are often compressed, around 1.5 percent to 2 percent. Here, the appeal is purely patrimonial.
- Mareterra
This new eco-district on the sea is redefining luxury. While rents reach record levels, the entry price limits pure rental yield.
- Jardin Exotique and Moneghetti
These areas are ideal for optimizing returns. More residential, offering sweeping views and easy access, they feature price levels more in line with achievable rents.
Capital appreciation, the true engine
Beyond monthly income, Monaco investors rely on capital growth. With a 44 percent increase over ten years, Monaco real estate has outperformed most global financial assets. It is a safe haven that protects against inflation and geopolitical instability.
Key points for investors in Monaco in 2026:
- Net yield: 2.5 percent to 3 percent.
- Taxation: A unique global advantage, zero property and income tax.
- Demand: Strong growth driven by international families.
- Strategy: Favor peripheral districts for yield, and the seafront for capital appreciation.
More than a simple income-generating investment, Monaco real estate is a safe-haven asset in a stable environment, combining exceptional quality of life, tax efficiency and long-term value growth. In a European context marked by economic uncertainty, Monaco retains its status as a secure choice for discerning wealth investors.
In such a tight and competitive market, real-time access to information makes all the difference. The best rental opportunities are often secured within hours, sometimes even before any public listing. Miells offers the largest portfolio of rental properties among Monaco agencies and supports you in your search with privileged access to available opportunities, whether for renting or for buy-to-let investment. Thanks to our in-depth knowledge of the Monaco market and our extensive network, we present you with opportunities that precisely match your criteria before they become public.
Contact us today to benefit from tailored support and gain early access to the finest opportunities in the Monaco real estate market.
