In 2022, from January to October, foreign citizens and foreign companies purchased real estate in Montenegro worth 370 million euros, which is significantly more than a year earlier, according to central bank data.
Data on real estate sales for November and December of last year will be known in March, but, according to expectations, turnover in these months could amount to around 60-70 million, so the total value of real estate sold to foreigners could reach 430 to 440 million euros, writes Vijesti.
In total, in 2021 foreigners spent 278 million euros on buying real estate in Montenegro, in 2020 – 116 million, in 2019 – 178 million, in 2018 – 182 million. Over the past five years, foreigners have bought Montenegrin real estate worth 1.2 billion euros.
The growth in real estate sales to foreigners last year was most strongly influenced by the implementation of the economic citizenship program, where by purchasing real estate — apartments in tourist centers in the south for 450 thousand euros and in the north and in underdeveloped municipalities for 250 thousand — they obtained the right to receive citizenship.
The publication writes that another reason is that during periods of inflation, as was the case last year, many people decide to buy real estate as one of the safer ways to ensure that their money does not lose value.
Montenegro was attractive to foreigners as a developing country with great tourism potential and because of the large number of exclusive tourism-residential projects such as Porto Montenegro, Portonovi, Luštica Bay, because they expect prices for this real estate not to fall, i.e. , they can only rise as these projects develop.
According to the Monstat Statistical Office, the total value of real estate turnover in 2021 amounted to 400 million euros, and according to CBCG foreigners bought real estate worth 278 million euros, which is 69 percent of the total turnover. This relationship is such that foreigners mainly buy luxury apartments and villas that cost as much as ten ordinary apartments.
Part of this turnover is hidden from official statistics because builders often contribute an apartment under construction to the company's share capital and then sell that company, usually to foreigners. Thus, the buyer is indirectly the owner of the real estate through this company, and the transaction formally is not real estate, but a company.
Most real estate buyers in Montenegro are from Germany
According to CBCG, the most real estate last year was bought by citizens of Germany and companies from this country for the amount of 57 million euros, followed by Russians, who invested 50 million in real estate. Here is the full list:
1. Germany - 57 million euros 2. Russia - 50 million euros 3. Serbia - 42 million euros 4. USA - 32 million euros 5. Turkey - 30 million euros 6. Ukraine - 15 million euros 7. Switzerland - 15 million euros 8. Bosnia and Herzegovina - 14 million euros 9. United Kingdom - 12 million euros 10. Austria - 8 million euros 11. UAE - 8 million euros 12. Canada - 6.7 million euros 13. France - 6:3 million euros 14. Poland - 5.3 million euros 15. Croatia - 5.2 million euros 16. Czech Republic - 5 million euros