Trump poses for a photograph.

Donald Trump lamented on Monday that war-torn Gaza could be "one of the best places in the world," claiming the Palestinian people living there had not done enough to exploit their Mediterranean location.

Conservative media personality Hugh Hewitt asked the Republican White House nominee and former real estate developer in a radio interview if Gaza could rival Monaco if it was "rebuilt the right way."

"It could be better than Monaco. It has the best location in the Middle East, the best water, the best everything," Trump replied.

Trump said he had "been there" and that it made him say "wow" – although he alleged that the locals "never took advantage" of their seafront views.

"It could be the most beautiful place. The weather, the water, the whole thing, that climate – it could be so beautiful. It could be the best thing in the Middle East, but it could be one of the best places in the world."

Trump's remarks came on the first anniversary of the Hamas attacks on Israel that resulted in the deaths of 1,206 people, mostly civilians, according to an AFP tally based on the latest official Israeli figures.

According to the health ministry in Hamas-run Gaza, 41,909 people, the majority civilians, have been killed since the start of the war. The figures have been deemed to be reliable by the United Nations.

Trump may have been inspired by his son-in-law and former White House employee Jared Kushner, who suggested in February that Israel empty Gaza of civilians to unlock the potential of its "waterfront property."

Agence France-Presse