Since the Montenegrin real estate market is developing very fast, it is certain that your investment will gain value if you make smart investments. We prepare professional and detailed real estate analysis so that you can make the right decisions when buying real estate. Please also note that you can get a residence and work permit with the properties you will buy in Montenegro.
You can think of Montenegro as a newly discovered garden. Due to the untouched beauties and the inadequate real estate market that is under heavy demand, important opportunities are awaiting the foreign investors who invest in Montenegro during this development period.
Why is the Montenegro real estate market gaining value?
• M2 Prices are increasing regularly since the available units are inadequate.
• Since the tourism facilities are not sufficient, tourists prefer to rent houses at high rates.
• The tax rate in title transfer transactions is only 3%.
• Property taxes range from 0,25% to 1%.
• No commission is requested from the buyer.
• Real estate prices are affordable when compared to neighboring countries.
• There are 2 international airports although the country area is only 13,812 km2.
• The number of flights from Montenegro to central cities in European countries is constantly increasing; bringing more tourists.
• High quality education system increases the interest of immigrants.
• The fast-running bureaucracy increases the demand for easy trading.
• The Montenegrin government's infrastructure and road projects positively affect real estate values.
Montenegro House Price Analysis
House prices in Montenegro increased by 4,95% on average in 2018. M2 prices range from 1500-2500 Euros in southern cities like Kotor. Prices have regained steady growth even though the global crisis in 2008-2009 temporarily affected the Montenegrin real estate market.
40% of the residential units in the market were purchased by the Russians in 2012. Even some Russian villages were built because of this intense demand. In addition, there are also some private Russian schools in Montenegro. Due to the rapid and excessive depreciation of the Russian Ruble, some Russian investors left the market In the following years. This led to a short-term decline in property prices.
Montenegro Real Estate Market
It is necessary to examine the Montenegrin real estate market in two separate regions in order to understand the current advantages and develop appropriate strategies. Northern Montenegro region is more suitable for commercial investments such as agriculture, factories, shopping malls and so on. Southern Montenegro on the other hand is more attractive for residential investments such as touristic facilities, residences, detached houses, offices and apartments due to the high tourism potential. There are different incentives provided by the Montenegrin government for both regions.
The southern parts are mostly surrounded by beaches and have a mild climate, while the northern parts are mountainous and highly suitable for winter sports. Especially in northern Montenegro, flat land areas are generally reserved for agriculture in order to support the agricultural development.
Although only Budva region was marketed for tourism purposes in the past, Kotor and its neighboring towns started to attract even more tourists during the summer months. The free land areas around Kotor contain high-profit options for touristic facilities and residential construction.
2017 was the year in which significant demand from the European Union countries were realized in the real estate market. The most popular region for real estate investment by EU countries is the Bay of Kotor (Boka Kotorska) which is under the protection of UNESCO WORLD HERITAGE with its historical and natural beauties.