Real Estate Market In Montenegro

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08.01.2018

The price of housing in Montenegro is expected to rise, in the midst of a growing demand for property and a successful tourism sector. In 2017, the average price of a home in the country rose 4.95%. This is a big difference from the drop of 10.18% that was seen at the same time the previous year. There has been an increased interest in properties over the last few years, and interest is expected to continue rising still, as many new flights are being launched from all across Europe. Tourism rose by about 10 percent in 2016, and another 18 percent still in 2017.

The Montenegro housing market was not immune to the market crises in 2008. Many foreign buyers were lost, although some Russians did keep buying. The price of housing declined as far as 20 to 30 percent in the middle of 2009, however, the price of land began to rise as Russians started looking for land to build houses on, rather than buying houses themselves.

While home prices are not back to where they were before 2007, they seem to have settled into a less inflated and more realistic range. For example, apartments in Kotor used to sell for about $3000/square meter, whereas now they go for closer to $1800-2500/square meter. This seems to be the case for the entire market all along the coast.

Prices are determined by obtainable and realistic rental income, the quality of the construction of the homes, as well as location. Properties on the sea front seem to maintain their value, while some overdeveloped places are seeing very small increases in value. Overall, the prices for property in Montenegro are still seen as very attractive compared to the established markets of some of the surrounding locations.

Foreign buyers are largely attracted to Montenegro due to the fat that there are no restrictions placed on them. It is not required to have a foreign lawyer when making purchases in Montenegro, although it is recommended and certainly not a bad idea as all commissions are paid for by the seller of the home! The buyer only needs to pay to notarize the contract, and cover the title transfer tax.

Land is also becoming a popular purchase in Montenegro, due to the government passing a law that allows foreign buyers to automatically get a residency permit once they buy a property. This can be extremely beneficial to those looking to have custom homes built, whether for themselves or to profit from later in some way.

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