Monaco’s Construction Sector Slows as Major Development Cycle Concludes

Monaco’s construction sector has entered a clear slowdown phase, marking the end of an exceptional cycle that had sustained activity in the Principality for more than a decade. The shift, long anticipated by professionals and public authorities, is now confirmed by official economic data.

According to IMSEE’s quarterly bulletin for the third quarter of 2025, construction was the main contributor to the recent economic contraction. Sector turnover declined by nearly €400 million year-on-year, representing a fall of close to 20 percent, bringing total revenues to approximately €1.6 billion, the lowest level recorded in four years.

This decline follows the completion of major projects such as Mareterra and Testimonio II, which had previously driven unusually high levels of construction activity and investment.

Employment impact

The slowdown is also reflected in the labour market. Construction employment decreased by 6.7 percent compared with the same period last year, contributing significantly to the 2.5 percent decline in private-sector employment across the Principality. The total number of hours worked in the sector has also fallen, now below 2024 levels.

Broader economic context

Beyond construction, Monaco’s economy has shown signs of moderation. Overall turnover excluding financial activities declined by just over 2 percent, influenced by weaker performance in wholesale trade and activities linked to real estate and development.

As of early 2026, the data points to a period of normalisation rather than disruption, as the economy adjusts following the completion of large-scale urban developments.