In an era marked by economic volatility and shifting investment paradigms, real estate continues to be a cornerstone in the portfolios of high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs). Its tangibility, intrinsic value, and potential for appreciation make it a preferred asset class for wealth preservation and growth.
According to Chubb’s 2024 Wealth Report, a significant 86% of affluent individuals plan to increase their spending on homes within the next 12 months. This trend underscores the enduring appeal of real estate as both a lifestyle asset and a financial investment. Moreover, the report highlights that over 80% of respondents already own multiple homes, indicating a strategic approach to property ownership among the wealthy.
The UBS Billionaire Ambitions Report 2024 further corroborates this inclination, revealing that 43% of billionaires intend to augment their real estate holdings over the coming year. This strategic shift reflects a broader trend among the ultra-wealthy to diversify portfolios and seek stability amidst market fluctuations.
Real estate’s appeal lies not only in its financial merits but also in its capacity to offer lifestyle enhancements, privacy, and a tangible legacy for future generations. These multifaceted benefits solidify its status as a preferred investment avenue for the affluent.
Monaco stands as a paragon of luxury and exclusivity in the global real estate landscape. Its unique combination of favorable tax policies, political stability, and Mediterranean allure makes it a magnet for the world’s elite.
The principality’s limited land area—just over 2 square kilometers—has led to a scarcity of available properties, driving prices to unprecedented heights. As per the Knight Frank Wealth Report 2025, $1 million secures a mere 19 square meters of prime residential space in Monaco, highlighting its status as the most expensive real estate market globally.
Developments like Mareterra exemplify Monaco’s commitment to innovation and luxury. This €2 billion land reclamation project has added six hectares to the coastline, featuring properties designed by renowned architects such as Renzo Piano and Norman Foster. Prices in Mareterra have soared to €120,000 per square meter, reflecting the high demand and exclusivity associated with Monaco’s real estate offerings.
Despite the premium pricing, properties in Mareterra have been successfully sold, underscoring the persistent demand among UHNWIs for residences in Monaco. The principality’s blend of luxury, security, and lifestyle continues to captivate the affluent, reinforcing its position at the pinnacle of global real estate markets.
Investment preferences among the wealthy exhibit notable generational distinctions, yet real estate remains a unifying asset class across age groups. Bank of America’s 2024 Survey of Wealthy Americans reveals that individuals aged 21 to 43 view real estate as the greatest opportunity for growth (31%), followed closely by cryptocurrency and private equity.
Conversely, those aged 44 and older prioritize U.S. stocks (41%) but still regard real estate as a significant investment (32%). This data underscores real estate’s broad appeal, offering both stability for older investors and growth potential for younger ones.
The younger demographic’s interest in real estate is often fueled by wealth generated through technology ventures, digital assets, and entrepreneurship. This influx of new wealth is increasingly channeled into property investments, particularly in prestigious markets like Monaco.
For older investors, real estate serves as a means of wealth preservation and legacy building. The tangible nature of property, coupled with its potential for appreciation, makes it an ideal asset for transferring wealth across generations.
In the face of evolving geopolitical landscapes and fiscal policies, the affluent are actively seeking jurisdictions that offer financial stability, favorable tax regimes, and a high quality of life. Monaco consistently ranks among the top choices for such individuals.
The principality’s allure is multifaceted: zero income tax, a robust legal system, and a cosmopolitan lifestyle attract UHNWIs from around the globe. Additionally, Monaco’s strategic location on the French Riviera and its status as a sovereign city-state contribute to its desirability.
Recent shifts in tax policies in countries like the UK have prompted many wealthy individuals to reconsider their domiciles. Monaco, with its stable fiscal environment and luxurious offerings, emerges as a compelling alternative for those seeking to safeguard their wealth.
Furthermore, the principality’s commitment to sustainability and innovation, as evidenced by projects like Mareterra, aligns with the values of modern investors who prioritize environmental responsibility alongside financial returns.
Monaco’s real estate landscape is evolving to meet the demands of a new generation of investors who value sustainability and innovation. The Mareterra development epitomizes this shift, integrating eco-friendly features such as solar panels, heat pumps, and extensive green spaces.
This commitment to environmental stewardship not only enhances the quality of life for residents but also positions Monaco as a forward-thinking leader in luxury real estate. Such initiatives resonate with UHNWIs who seek investments that align with their values and contribute positively to the planet.
Moreover, Monaco’s emphasis on innovation extends beyond sustainability. The principality continually invests in infrastructure, technology, and cultural offerings to maintain its status as a premier destination for the affluent.
By blending tradition with modernity, Monaco ensures its real estate market remains dynamic, appealing, and resilient in the face of global changes.
An Aerial View of Mareterra
Real estate’s enduring appeal among the wealthy is a testament to its multifaceted benefits—financial stability, lifestyle enhancement, and legacy building. Monaco, with its unique blend of luxury, innovation, and fiscal advantages, exemplifies why property remains a preferred investment for HNWIs and UHNWIs. As global dynamics continue to evolve, the principality’s real estate market is poised to attract and retain the world’s affluent, reaffirming its status as a premier destination for wealth preservation and growth.
To learn more about the market, contact Baldo Realty Group today.
