Monaco Construction Sector Faces Slowdown After Decade of Growth

Monaco’s construction sector is entering a period of deceleration, following more than ten years of high activity driven by landmark developments such as Mareterra and Testimonio II.

According to the latest quarterly bulletin from IMSEE, published for the third quarter of 2025, construction was the largest contributor to Monaco’s recent economic slowdown. Sector turnover fell by almost €400 million year-on-year, a drop of nearly 20%, bringing revenues to €1.6 billion, the lowest level in four years.

Employment in construction also decreased, with a 6.7% decline in jobs, contributing to a 2.5% drop in private-sector employment across the Principality. Total hours worked fell below 2024 levels, reflecting the reduced activity.

The slowdown is also affecting the broader economy. Turnover outside the financial sector fell by just over 2%, partially due to weaker performance in wholesale trade and real estate-related activities.

While industry observers note that this adjustment appears structural rather than cyclical, there are calls for targeted public investment to provide longer-term stability for Monaco’s construction companies and workforce.