Apartment prices in Montenegro, despite the economic crisis caused by coronavirus, have risen by 10-30%, depending on whether you are buying an apartment finished or under construction.
In particular, data from Monstat show that the average price per square meter of a new apartment in Montenegro in the second quarter amounted to 1,230 euros, which is 23.3% higher than in the same period last year.
Reasons for the rise in real estate prices in Montenegro
There are several reasons that have led to higher apartment prices in Montenegro. One of the key ones is the rise in construction material prices.
For this reason, investors were forced to raise the price per square meter of an apartment, and the increase was influenced by the fact that many investors during the coronavirus period invested in major projects, took out huge loans that they had to repay throughout the pandemic. In addition, sales were very weak, so they had to raise apartment prices.
The Chamber of Commerce of Montenegro (PKCG) also reported that the rise in construction material prices led to an increase in real estate prices.
According to PKCG, the business of construction companies was stable for a time, but due to rising construction material prices many companies resorted to increasing real estate prices.
“Due to the introduced restrictive epidemiological measures, many factories producing construction materials were closed, which led to a decrease in production volumes and, consequently, an increase in costs,” PKCG explained.
As for the coast, property purchases began rapidly, especially on the first and second sea lines. Foreigners could hardly wait for the easing of measures to come, see the property in person, and make a purchase. However, at the foreign real estate agency MD Realty purchases were often made remotely.