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 far 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 notes Vyacheslav Maevsky, founder of the real estate agency MD Realty, the average cost often differs from the official information.
The average property price in Podgorica is about 2,000 euros per square meter. In Budva, prices range from 2,000 euros to 10,000 and even 11,000 euros per square meter in premium areas. In Kotor, property cheaper than 2,000 euros is extremely rare, and as a rule, these are older houses.
Maevsky notes that there may be isolated listings on the market with lower prices, but they are often associated with legal or technical issues — for example, incorrect documents or defects in the property itself.
Market analyst Jovan Rabrenovic also believes that the real cost of housing is higher:
- In Podgorica it is difficult to find housing cheaper than 1,900 euros per square meter, and new ready-to-move-in apartments are already sold at prices from 2,500 euros and up.
- In Kolašin the cost 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 prestigious areas of Tivat, Budva and Herceg Novi, demand remains consistently high, which also affects price growth.
Factors influencing price growth
- High demand from foreign investors Montenegro attracts the attention of foreign investors thanks to its geographic location, mild climate, and prospects for economic development. Coastal regions such as Budva, Kotor and Tivat, where there is increased interest in buying property for holidays and rental income, are especially popular.
- Limited supply on the market Construction of new residential complexes is not keeping up 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 costs Global trends such as rising raw material prices and supply chain disruptions have led to an increase in 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 about the advisability of buying housing 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,” says Rabrenovic. High housing prices are accompanied by an increase in rental costs. Currently, rent ranges from 300 to 1,000 euros depending on the region and type of property. Experts do not forecast a decrease in rental rates in the near future.
Forecasts and recommendations for buyers
Experts agree, that 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 listings, compare prices and terms, and also 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 possibilities of renting out the property, the expected return, and the potential increase in the property's value in the future.
- Working with professionals: Turning to experienced real estate agents and lawyers will help avoid possible risks and ensure transaction transparency.
Thus, the Montenegro real estate market remains attractive both for investors and for buyers looking to purchase housing for their own living. Despite rising prices, interest in property in the country does not weaken, and demand continues to exceed supply, making housing investments promising and profitable.