Why the demand for real estate in Montenegro is growing
The real estate market is booming, and prices are rising in almost all directions. This makes investing in the segment extremely popular, both on the part of specialized companies and individuals who want to increase their capital. Against this background, real estate in Montenegro is an excellent option for investment.
Despite the beauty of the country, the clean sea, and beautiful nature, the local real estate market is still considered undervalued. According to European standards, the objects are quite cheap, and you can find both -low-budget apartments and luxury villas. And the middle segment of the local market is practically absent.
Experts say that the segment of residential real estate in Montenegro has changed significantly over the past few years. It has gained stability, which is primarily due to the development of the economy. Even during the pandemic, the market retained its high position and was able to survive the difficult period with minimal losses. Sales did not decline and there was no increase in rental rates. This success against the backdrop of the global crisis is simple enough to explain – Montenegro attracts freelancers from Europe and other regions, primarily because of its mild climate and low prices. With the spread of remote work in the country, the number of guests has increased significantly.
Despite the fact that the tourist season of 2020 was the most disastrous for Montenegro, this has not significantly affected the real estate market. Investment activity here was observed even during the hard lockdown period, when the deals were closed online.
According to experts, Montenegro ranks second in the world in terms of the dynamics of the construction sector. For the years 2022-2023 additional investments in this market are already planned, they will amount to about 800 million euros.
The attractiveness of the country in terms of investment is due to the flexible system of taxation, which is particularly felt in comparison with the rules of other members of the European Union. In addition, in Montenegro, there is a program for obtaining citizenship in exchange for investment, which is popular among residents of different countries.
All the processes in the construction sector are carefully controlled by the state, so in Montenegro, there are built apartment complexes, which correspond to high international standards. Most often, buyers of high-luxury properties worth 2 million euros are citizens of Ukraine, Canada, Russia, and the Arab states. Luxury housing from 500 thousand euros is popular with the Germans, Austrians, Israelis. Apartments and houses in the budget segment of 200,000 euros are acquired by both local investors and immigrants from Turkey, Africa, and the CIS countries.
High demand is observed for elite and low-budget housing, but the real estate of the average price category is still lagging behind. Foreign investors show greater interest in new buildings, the secondary market is not yet so much in demand.