Monaco’s Urban Landscape Set to Evolve with Two New Developments

 

Given the extreme scarcity of developable land—Monaco spans just 2.12 km²—the State may, under very specific circumstances, consider disposing of a portion of its public domain. Such a decision holds considerable weight from an economic, urban planning, and heritage perspective. This process is known as land reclassification, or désaffectation—a legal act by which public property is withdrawn from public or service use. It is enacted by law and results in the asset reverting to the private domain of the State or the Commune, enabling its eventual transfer to a private operator, typically a property developer. This reclassification is a necessary prerequisite to any transfer of ownership rights.

Recently, Laws No. 1.571 and No. 1.572, enacted on 8 April 2025, formally reclassified two plots of land belonging to the State’s public domain.

 

The first plot is located between the State-owned building “Les Jacarandas” at 11, Allée Guillaume Apollinaire and Nos. 39 and 43, Rue Grimaldi, with an approximate surface area of 144 m².

The reclassification allows for the transfer of this parcel to a private developer for the construction of an 18-storey residential building. In exchange, the developer will provide the State with two three-room apartments measuring approximately 105 m² and 131 m² respectively, and one two-room apartment measuring 60 m² (all sizes after applying a 50% weighting to outdoor spaces), as well as four parking spaces with access from the Jacarandas ramp, and four cellars. The total value of this consideration has been assessed at €11,840,000 excluding VAT, based on a selling price of €40,000/m² excluding VAT. These three apartments, located on the 8th floor, are designated for Monégasque nationals.

To facilitate the development, the two villas situated behind 41 Rue Grimaldi—namely Nos. 39 and 43—will be demolished.

 

 

The second plot is situated between Boulevard du Larvotto and the building “Le Formentor” on one side, and “Villa Larvotto No. 1” and the building of the “Société Monégasque des Eaux” on the other. This land, previously designated as a public garden, covers approximately 305.15 m².

The development will also include the creation of a spacious public pedestrian square, landscaped and measuring around 242 m² at the base of the building, thereby connecting it with the currently less accessible nearby public garden.

The reclassification will allow not only for the construction of an 11-storey residential building, but also for the future development of an additional structure comprising between 76 and 90 residential units for Monégasque citizens, to be built above Boulevard Hector Otto, as well as spaces intended for tertiary use.

In addition to a direct payment to the State of approximately €80,657,206, the developer has committed to transferring to the State—free of any occupant—ownership of the land currently supporting the building “Le Prestige” at 25 Chemin des Révoires (located on the Franco-Monégasque border), and eight parking spaces within the “Le Patio Palace” building at 41 Avenue Hector Otto, for a total value of €70,729,026.

 

 

 

 

In such operations, the Principality of Monaco seeks to secure the most favourable financial terms and long-term guarantees to safeguard its patrimonial and fiscal interests. One of the Principality’s greatest assets lies in its prudent and optimised public financial management—free from public debt or budget deficits—which ensures enduring political and economic stability. This, among many other reasons, is why so many individuals and companies choose to establish themselves in Monaco.

 

In this context, the entire team at Barnes Valeri Agency, with its strong market expertise and extensive network, stands ready to guide you through your relocation and investment projects in the Principality—whether in newly completed developments (Bay House, Mareterra), those under construction (Villa Ninetta, Le Lido, Villa Lucia), or future opportunities such as the projects described above, for which we can obtain all relevant information directly from the developers.