Over the past four years, foreigners have purchased real estate in Montenegro worth 1.5 billion euros. According to data from the Central Bank of Montenegro, interest in the local market remains high, but is gradually declining. In 2021, foreigners bought real estate worth 278 million euros, in 2022 — 448 million, which is 60% more, and in 2023 the volume of purchases amounted to 463 million euros, which is only 3.3% more than in 2022.
Key figures:
- In 2021, buyers spent 278 million euros.
- In 2022, interest increased by 60% — 448 million euros.
- In 2023, the amount was 463 million euros.
- In 2024, over 11 months, foreigners purchased real estate worth 398 million euros.
Real estate sales by foreigners in Montenegro also remains a relevant topic. Over the past four years, they sold property worth 421 million euros. In 2021, this figure was 72 million euros, in 2022 — 108 million euros, in 2023 — 134 million euros, and for the first 11 months of 2024 — 107 million euros.
Foreigners purchased two-thirds of the real estate
In the first 11 months of 2024, banks in Montenegro issued housing loans worth 156 million euros, and despite loans to local citizens and companies, foreigners accounted for about two-thirds of property buyers in the country. This confirms the high interest of foreign investors, especially in the context of rising housing prices.
Real estate prices: overvaluation and expectations
The Ministry of Finance of Montenegro, in its Economic Reform Program, stated that real estate in the country is overvalued due to the growth of foreign investment. In the coming years, a slow decline in housing prices to their fair value is expected. The average price per square meter in new buildings in the third quarter of 2024 was 1,853 euros, which is significantly more than 1,192 euros per square meter in 2020.