The real estate market in Montenegro continues to show steady price growth, and according to analysts, a significant drop in the cost per square meter is not expected in the near future. The main reason for this is strong demand, which significantly exceeds supply. This creates favorable conditions for sellers and developers.
Current housing prices in Montenegro
According to official data, in 2023 the average property price increased by about 100 euros and reached 1,850 euros per square meter. However, as noted byVyacheslav Maevsky, founder of the real estate agencyMD Realty, the average cost often differs from official information.Maevsky notes that there may be isolated listings on the market with lower prices, but they are often related tolegal or technical issues— for example, incorrect documentation or defects in the property itself.
Market analystJovan Rabrenovicalso believes that the real cost of housing is higher:- InPodgorica, it is difficult to find housing cheaper than 1,900 euros per square meter, while new ready-to-move-in apartments are already selling for 2,500 euros and above.
- InKolašin, the price per square meter has reached 2,500 euros, which indicates price growth even in regions that were previously considered affordable for buyers.
- On the coast, especially in the prestigious areas ofTivat,BudvaandHerceg Novi, demand remains consistently high, which also affects price growth.
Factors driving price growth
- High demand from foreign investorsMontenegro attracts foreign investors thanks to its geographic location, mild climate, and prospects for economic development. Coastal regions such asBudva,KotorandTivatare especially popular, with increased interest in purchasing property for holidays and rental income.
- Limited supply on the marketConstruction of new residential complexes is not keeping pace with growing demand. This is due to the limited number of available land plots, especially in coastal areas, as well as lengthy approval procedures and construction permit processes.
- Rising construction material costsGlobal trends such as higher raw material prices and supply chain disruptions have led to increased construction material costs. This, in turn, has affected construction costs and the final price of real estate.
Is it worth investing in real estate now?
When asked whether it makes sense to buy property in the current conditions, experts give a positive answer. “If you have the opportunity, it is better to buy property now, even on credit. Mortgage rates and the overall cost of housing do not exceed the potential benefit that can be gained from price growth,” Rabrenovic believes. High housing prices are accompanied by rising rental costs. At present, rents range from 300 to 1,000 euros depending on the region and type of property. Experts do not predict a decline in rental rates in the near future.Forecasts and recommendations for buyers
Expertsagreethat in the short term, a decline in property prices in Montenegro is unlikely. Demand continues to exceed supply, especially in popular tourist areas.Recommendations for potential buyers:- Careful market analysis: Before buying, it is recommended to study current offers, compare prices and conditions, and pay attention to the development prospects of the chosen region.
- Assessment of investment potential: If the goal of the purchase is investment, it is worth considering the possibility of renting out the property, the expected return, and the potential future increase in the property’s value.
- Working with professionals: Consulting experienced real estate agents and lawyers will help avoid possible risks and ensure a transparent transaction.