Over the past four years, foreigners have purchased
real estate in Montenegroworth 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 property worth 278 million euros, in 2022 — 448 million euros, 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 reached 463 million euros.
- In 2024, over 11 months, foreigners purchased real estate worth 398 million euros.
Sales of real estate by foreignersin Montenegro also remain 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 in the first 11 months of 2024 — 107 million euros.
Foreigners purchased two-thirds of the real estate
Over 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 strong interest of foreign investors, especially in the context of rising housing prices.
Real estate prices: overvaluation and expectations
The Ministry of Finance of Montenegro stated in its Economic Reform Program 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 developments in the third quarter of 2024 was 1,853 euros, significantly higher than 1,192 euros per square meter in 2020.
Dynamics of foreign investment
The inflow of direct foreign investment into Montenegro’s real estate sector since 2021 has amounted to about 6.4% of the country’s GDP annually, which is much higher than the 3.5% recorded in the period from 2015 to 2020. This increase is linked to growing foreign interest in real estate, rather than to rising objective costs.
