Foreign investment in Montenegrin property: trend overview
Direct investment in Montenegrin property showed growth in the first quarter of 2025. Local properties, which remained undervalued for a long time, have finally attracted the attention of foreign companies.
According to the Central Bank, direct investment in the real estate sector totalled around EUR 114 million during this period. This figure is 21% higher than in the first quarter of 2024. Capital inflows into the sector have been steadily increasing for the past five years. Compared to 2019, the volume of real estate transactions has quadrupled, with the average cost per square metre increasing by 50%.
Other sectors in Montenegro do not enjoy the same level of success as the local property market:
– Foreign investment in businesses and banks fell by 40% to around EUR 22 million.
– Financing of Montenegrin companies by foreign credit organisations decreased by EUR 5.5 million.
These figures indicate emerging trends. Investors are primarily interested in Montenegrin commercial property. At the same time, however, they do not consider it a good place in which to open a business.
What countries invest in Montenegrin property
Among the buyers of local property are representatives of various states. However, citizens of the following countries have shown the greatest activity:
1. There is a traditional demand from neighbouring Serbia. This is due not only to geographical proximity but also to close cultural ties. Serbs concluded transactions totalling more than EUR 19 million in the first quarter.
2. Turkish citizens are also actively acquiring local properties, primarily elite properties. Their investments totalled EUR 16 million.
3. Despite the cancellation of the Golden Visa, buyers from the US are also making deals in the market. Their total capital was EUR 14 million.
4. Representatives from Germany are looking for more affordable investment opportunities. They purchased properties totalling EUR 11.5 million.
5. Cypriot citizens are also interested in Montenegro. Their investments totalled more than EUR 5 million.
In addition, representatives from Kazakhstan were among the buyers. They invested EUR 706,000 in the sector. Citizens of Australia and Oman are also present on the market.
Foreigners not only buy property, but also sell it. During the specified period, capital outflows from the local market totalled around EUR 15 million. Serbs made the most of the sales transactions, followed by citizens of Georgia and Great Britain. Experts have noted an increase in the volume of capital outflow, which may affect price fluctuations. The secondary property market is especially vulnerable in this respect.